China-India Relations mvred forward slowly in 2012. Leaders of the two countries have maintained regular contacts and met frequently during international gatherings. Political trust between the two countries, however, remains low. Against the background of global and domestic economic situation, the bilateral trade declined, and the scale of FDI was small. The two countries have announced that 2011 is the "Year of Exchanges" and 2012 the "Year of Friendship and Cooperation", and gouth exchanges have been encouraged. China has committed to pushing the military exchange with India, as a result, military exchange has increased. India's involvement in the South China Sea dispute complicated China-India relations.
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