Despite growing economic and strategic relations, India and the PRC face multiple challenges. India is facing a trade imbalance in favour of China. Since the two countries have failed to resolve their border dispute, it is reported that Chinese military incursions are invading Indian territory. The two countries have continued to develop military infrastructure along border areas. The growing focus of interest in three democracies – India, the United States and Japan – has become a source of Chinese uncertainty. China has expressed concern about India`s military and economic activities in the South China Sea. The strategic cooperation between China and Pakistan and China`s Belt and Road initiative has destabilization of India. The two countries agreed to deepen cooperation by properly dealing with disputes and called for strengthening the CBM in order to maintain stability at the border. On the issue of borders, China said that the meeting of special representatives should be well used on the issue of borders. Xi called on India and China to implement free trade, multilateralism and the right of developing countries to legitimate development, thereby strengthening mutual trust.
After independence, India believed it had inherited fixed borders from the British, but this was the opposite of China`s point of view. China felt that the British had left a controversial legacy on the border between the two newly formed republics. The 3,488 km long border between India and China is not always clearly delineated and there is no real line of control that is the subject of consensus. It`s the first time. The border between India and China is divided into three sectors, of which . B west, middle and east. In 1960, talks by Indian and Chinese officials to settle the border dispute failed on the basis of an agreement between Nehru and Zhou Enlai, the Chinese minister. On 23 October 2013, India and China signed nine agreements/memorandum of understanding (Memorandum of Understanding), including the Border Defence Cooperation Agreement (BDCA). In September 2014, India and China were deadlocked at the LAC when Indian workers began building a canal in the border village of Demchok and Chinese civilians protested with the support of the army. It ended after about three weeks, when the two sides agreed on the withdrawal of troops. In September 2015, Chinese and Indian troops rushed into the Burtse area of northern Ladakh after Indian troops dismantled a controversial Chinese-built watchtower near the agreed patrol line.