In the last month, India and China have taken certain diplomatic initiatives that could well indicate a movement of relations from the realm of official rhetoric to real action. These include the MoU on intelligence sharing that the Indian Home Minister, Shivraj Patil, signed with Zhou Yongkang, the Chinese minister of Public Security, and the increased cooperation between the two states in the nuclear arena.

Aimed at enhancing cooperation between the two countries on issues like terrorism, smuggling, drug trafficking and illegal crossings along the border, the MoU is a sign of maturing bilateral relations between the two countries. Willingness to cooperate on issues such as terrorism and drug trafficking indicates a change in the Chinese attitudes that once regarded these as purely internal matters requiring independent action. It also signals China's acceptance of India as a reliable partner.

Renewed focus on resolving the boundary after the MoU on intelligence sharing comes as no surprise. Problems related to law and order, as well as the complicated issue of separatism are closely related to the boundary question. It is important to keep in mind that the MoU is a step in the right direction and conveys the commitment to amicably resolve 'issues left over from the past'. Other than its utility in creating conditions ripe for settlement of the boundary question, the MoU raises hopes that relations between the states will improve to a point where the nature of China-Pakistan relations no longer distresses India.

A commitment to tackle international terrorism collectively is premised on a tacit agreement over what constitutes terrorism. Both India and China have been wary of international speculation on their handling of terrorist activities internally. Though China extended support to the US-led 'War on Terrorism', this was not because it concurred with American interventionism, but was rather a move designed to legitimise its actions against East Turkestan Islamic Movement. The spectre of Islamic fundamentalism along with a resurgence of secessionist rhetoric in the border areas is perhaps the impetus for the MoU with India.

As far as India is concerned this could eventually extend to a recognition of the situation in Kashmir as constituting cross border terrorism. Although there is no doubting the military nature of Sino-Pak relations, it must be realised is that in accordance with Chinese threat perceptions, Pakistan is key to maintaining the geo-strategic balance in the region. Terrorism and the rise of religious fundamentalism, especially in the wake of the disintegration of the Soviet Union, pose for China not only an ideological dilemma but a very urgent internal security threat. A strong cohesive nation-state has always been the cornerstone of Chinese foreign policy. Terrorism borne out of religious fundamentalism is a direct threat to the Chinese state. Thus, as weapons technology and arms transfers to Pakistan may continue, China will not hesitate in tackling religious extremism or terrorism nor extend support for the same abroad. As China seeks to control the spread of discontent among religious minorities, Pakistan may have cause for concern as far as Chinese support for activities in Kashmir are concerned. In a marked departure from earlier policy, China had chosen not to support Pakistan in the aftermath of the Kargil War. In present circumstances, it would not be unreasonable to expect this trend to continue.

The two states seem to have arrived at an understanding as far as the nuclear issue is concerned as well. China's silence over the Indo-US nuclear deal was deemed a prelude to objection within the NSG. This has not happened. Commentaries within the Chinese media looked upon the deal not as a threat to China from India, rather a ploy by the US to gain a foothold in the region. China has at the same time, refrained from commenting on Pakistan's demands for similar concessions. India's participation in the ITER nuclear project in Europe has also been supported. China is part of the Galileo programme and will cooperate with India on that front in the near future as well. Both states, along with Russia, have stated an intention to act in cohesion over the Iran nuclear issue. They are both loath to a confrontation over the same in the UN.

These developments point to China's acceptance of India's emergence as a global player. One that is able and is willing to abide by international norms - something that others in the region have had difficulty doing. As the two Asian giants cooperate and the process of high-level bilateral exchanges continues, little seems to stand in the way of transforming a relationship mired in mistrust to one that is characterised by amity.