The decision to revoke the granting of visa to Uyghur activists to meet Dalai Lama in Dharamshala appears India has scummed to Chinese pressure. The move also makes India’s stand somewhat vacillating as far as Ministry of External Affairs (MEA) is concerned. By granting visa initially it looked as if India is talking tough especially on Chinese stand on Pakistan-based militant Mualana Masood Azhar. India had asked China to designate Azhar a militant in United Nations which it had blocked giving two hoots to Indian proposals. China’s stand looks quite strong logically. On the economic front it is involved in Gwadar Port project, joined hands in F-6 aircraft manufacturing and rail project connecting Gawadar to the China hinterland with rail. With such heavy investments at stake it is obvious China’s stand would be with Pakistan. New Delhi needs to find economic alternative in China’s neighbourhood by developing cooperation with Taiwan and South Korea which can to a large extent ‘Make in India’ dream of Prime Minister Narendra Modi a reality and can work as a counter force to the growing influence of China. At India’s door step, China has emerged as the largest financial assistance provider to Nepal relegating India to a second place. India should keep the diplomatic channel open with China whether it respects Indian sentiments or not as both are the largest consumer markets and China has outpaced India in industrial production by maintaining economies of large scale production of cheap products. The two countries should properly manage and handle disputes, strengthen consultations on boundary affairs and safeguard peace and tranquility in boundary regions so as to create favourable conditions for the development of bilateral relations. The development of China-India relations is of great significance and has broad prospects. China and India have far more common interests than differences. China too is not free from its indigenous militancy and by taking a tough stand against Indian proposal it can not absolve itself from its responsibility of fighting terror along other countries.