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in  August  1995,  on  additional  troop  withdrawals  from  the  border  made
               further progress in reducing tensions.

                 Possibly indicative of the further relaxation of India-China relations, at least

               there was little notice taken in Beijing, was the April 1995 announcement,
               after  a  year  of  consultation,  of  the  opening  of  the  Taipei  Economic  and
               Cultural  Centre  in  New  Delhi.  It  serves  as  the  representative  office  of  the
               Republic  of  China  (Taiwan)  and  is  the  counterpart  of  the  India-Taipei

               Association in Taiwan; both institutions have the goal of improving relations
               between  the  two  sides,  which  have  been  strained  since  New  Delhi’s

               recognition of Beijing in 1950.

                 Sino-Indian relations hit a low point in 1998 following India’s nuclear tests
               in May. Indian Defence Minister George Fernandes declared that “China is

               India’s number one threat”, hinting that India developed nuclear weapons in
               defence  against  China’s  nuclear  arsenal.  In  1998,  China  was  one  of  the
               strongest  international  critics  of  India’s  nuclear  tests  and  entry  into  the
               nuclear club. During the 1999 Kargil War, China voiced support for Pakistan,

               but also counselled Pakistan to withdraw its forces.



               2000s



               With Indian President KR Narayanan’s visit to China, 2000 marked a gradual
               re-engagement of Indian and Chinese diplomacy. In a major embarrassment

                                    th
               for China, the 17  Karmapa, Urgyen Trinley Dorje, who was proclaimed by
               China,  made  a  dramatic  escape  from  Tibet  to  the  Rumtek  Monastery  in
               Sikkim. Chinese officials were in a quandary on this issue as any protest to

               India on the issue would mean an explicit endorsement of India’s governance
               of  Sikkim,  which  the  Chinese  still  hadn’t  recognised.  In  2002,  Chinese
               Premier Zhu Rongji reciprocated by visiting India, with a focus on economic

               issues.  2003  ushered  in  a  marked  improvement  in  Sino-Indian  relations
               following Indian Prime Minister Atal Bihari Vajpayee’s landmark June 2003
               visit to China. China officially recognised Indian sovereignty over Sikkim as

               the two nations moved toward resolving their border disputes.

                 2004 also witnessed a gradual improvement in the international area when
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