Asking China to demonstrate sensitivity to its core interests, India has said that Asian countries would judge China's "peaceful rise" not so much by the intentions of its leadership as by their "actions".
Foreign Secretary Nirupama Rao said China's rise, which presents both challenges as well as opportunities, will be "watched" closely.
"There will be both competition and cooperation but a stable dynamic equilibrium can be maintained within the larger matrix of dialogue and diplomacy. But China has to demonstrate sensitivity to India's core interests," she said while delivering a speech at a seminar recently.
The remarks come in the backdrop of India's serious concern over Chinese policy of issuing stapled visas to residents of Jammu and Kashmir which New Delhi feels is impingement on the country's "sovereignty and territorial integrity". China also refused visa to a high-ranking Army officer, commanding Jammu and Kashmir and this led to suspension of defence exchanges between the two countries.
Recently China also issued stapled visas to two Indian sportsmen from Arunachal to take part in the Weightlifting Grand Prix at Fujian province.
On global issues, Rao said India and China have several areas where cooperation has been possible - ranging from WTO trade matters, environment to energy security.