Contingency Planning Memorandum No. 27
The China-India relationship is remarkably stable in many ways. Bilateral summits and new multilateral groupings often bring the two Asian giants together in common cause. Both sides clearly appreciate the value of peace as a way to expand their trade and investment ties and to enable a continued focus on economic development at home. Yet important differences and suspicions persist; some date back to 1962, when India lost a short but decisive war to China. Others relate to the rising global ambitions, military capabilities, and political and economic influence of these two Asian neighbors.[Source]