Chinese President Xi Jinping’s trip to India this week highlights subtle shifts in the regional power dynamic that are bringing warmer ties between the two Asian giants, challenging China’s traditional relationship with Pakistan, and opening a new chapter in Beijing’s ongoing competition for influence with arch-rival Japan.

Xi arrived in New Delhi on Wednesday for a three-day visit focused on trade, investment and the resolution of decades-old border disputes. With the world’s second-largest economy and a proven track record at building highways, railways, and industrial zones, China has much to offer India as it seeks to upgrade its creaky infrastructure.

In a charm offensive ahead of his first state visit, Xi pledged China’s help in developing India’s infrastructure and said the relationship between the Asian superpowers was the most “dynamic and promising” of the 21st century.

Xi said the “the world’s factory and the world’s back office” made a winning combination, welcoming Indian businesses to China and calling for greater cooperation between two countries that have traditionally viewed each other with suspicion.

“With rich experience in infrastructure building and manufacturing, China is ready to contribute to India’s development in these areas,” Xi wrote in an article published in The Hindu daily.

“India is advanced in IT and pharmaceutical industries, and Indian companies are welcome to seek business opportunities in the Chinese market.

“The combination of the ‘world’s factory’ and the ‘world’s back office’ will produce the most competitive production base and the most attractive consumer market.”

The visit is the latest sign of easing suspicions between the two huge countries ― which between them have 2.6 billion people ― dating from a month-long border war in 1962 that left around 2,000 soldiers dead. That conflict ended in a standoff with both sides accusing the other of occupying its territory.

While ties have been steadily growing for years, they’ve been given a major boost under new Indian Prime Minister Narendra Modi, who’s signaled he wishes to pursue a more vigorous foreign policy. Xi is the first Chinese head of state to visit in eight years, while the country’s prime minister, Li Keqiang, made India his first overseas visit shortly after taking office last year.

“Good relations with India are a key part of China’s regional strategy and Xi’s visit creates the opportunity for direct face-to-face communication on the problems that still exist, such as the border issue,” said Zhao Gancheng, director of the Asia-Pacific Center of the Shanghai Institute for International Studies.

Modi spoke repeatedly to top Chinese officials in the first weeks of his administration, and during a recent visit to India, Chinese Foreign Minister Wang Yi described the new relationship as “the emerging tip of a massive buried treasure.”

There’s certainly plenty of room for growth. China may be India’s biggest trading partner, but commerce between them dropped to an anemic $65 billion last year, with China exporting $48 billion more goods than it imported. For Modi, boosting trade and foreign investment is critical to making good on his campaign promise of creating jobs for the 13 million young Indians entering the labor market each year.

China also has a strong vested interested in preventing India from drawing too close to the West and especially to Japan, which has enthusiastically courted Modi’s government.

Recently, Modi paid a five-day visit to Japan, bringing home pledges of billions of dollars in aid and investment and an agreement to strengthen their economic and security ties. Modi has emphasized the value of their shared commitment to democracy in contrast to China’s one-party authoritarian communist system.

(From news reports)