India-China relations are marred by their long un-demarcated border. China still has several reasons for keeping the dispute alive, while India has more reasons to resolve the dispute at the earliest. China was aware that resolving the dispute with Myanmar in 1960 would offer desired pay-offs to China and it was not wrong. It not only strengthened China-Myanmar border trade but also made China Myanmar’s only reliable partner during the nation’s self-imposed isolation period. So far as the border dispute settlement is concerned, while an early settlement of the dispute is not likely, there are a few positive developments. In the past few months, no major border incursions have taken place. Further, it was the first time in the past decade that the high-level visit has been completed without any dramatic event taking place at the border. These developments still do not guarantee a speedy resolution to the prolonged dispute. Thus, maintaining status quo is not only a requirement but a compulsion too. In fact, the unresolved border dispute has much to offer to China. However, in the case of Myanmar, instability in Tibet and the flight of the present Dalai Lama to India compelled China to settle its border with western and southern neighbours. Another major reason for China to address the China-Myanmar border question was the presence of the bases of the Kuomintang forces (nationalists) in Myanmar along its border with Yunnan. India’s rapid economic development can actually help improve its relations with China. Many regions in China are looking for business opportunities in the fast-growing India. Chinese citizens may not realise the full potential of India, but in general they are attaching far more importance to the neighbouring country than ever before. As of now, in the case of China’s border dispute with India, China is not likely to lose much if it does not resolve the dispute but only by seeking common development between China and India can the two build a new international order and form an Asian century.