On Aug 26, 2010, The Ministry of External Affairs (MEA) had issued a strongly worded demarche to China describing India's anger on China's refusal of visa to an Indian Army official from Jammu and Kashmir (JK).
China had refused visa to Lt General BS Jaswal, General Officer Commanding in Chief in Jammu Kashmir, with a reason that the officer in question serves in a region, which China considers as a disputed area.
Shivshankar Menon, the National Security Advisor said to reporters in the Chinese capital of Beijing that a Major General-ranked officer, from the Northern Army Command will lead a military delegation to China in June to finalise the details of a joint defence exercise.
He said, "It has been agreed that a multi-command Indian military delegation will visit China later this year."
Menon also informed that an in-principle agreement was reached to set up a mechanism for consultation and coordination on border matters.
The significant breakthrough to break the year-long impasse in military ties was achieved on the sidelines of the BRICS summit at Beijing, when Prime Minister Manmohan Sigh and Chinese premier Hu Jintao held a 50-minute long discussion. It is learnt that the PM also voiced his concerns regarding the increasing trade imbalance in favour of China.
According to analysts, India's trade deficit with China could reach $24 to $25 billion in 2011, compared to $1 billion in 2001-02.