Background
Ever since the Sino-Indian War of 1962, China and India have been strategic competitors in South and East Asia. China has cultivated close commercial and military relations with India's neighbour and rival Pakistan and competed for influence in Nepal and Bangladesh. After Deng Xiaoping's rise to power in China in 1979, China began reducing threats of expansionism and in turn cultivated extensive trade and economic relations with Asian nations. China became the closest partner and supporter of the military junta of Burma (also Union of Myanmar), which had been ostracised from the international community following the violent suppression of pro-democracy activities in 1988.
India's "Look East" policy was developed and enacted during the governments of Prime Ministers P.V. Narasimha Rao (1991–1996) and Atal Bihari Vajpayee (1998–2004). Along with economic liberalisation and moving away from Cold War-era policies and activities, India's strategy has focused on forging close economic and commercial ties, increasing strategic and security cooperation and the emphasis of historic cultural and ideological links. India sought to create and expand regional markets for trade, investments and industrial development. It also began strategic and military cooperation with nations concerned by the expansion of China's economic and strategic influence.
Read more about this topic: Look East Policy
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