In recent years, China-India bilateral relations develop smoothly. When Premier Wen Jiabao visited India in 2005, China and India announced to establish strategic cooperative partnership for peace and prosperity. The two countries accomplished joint research on Five-year Plan of China-India Comprehensive Trade and Economic Cooperation in March 2005, and the Plan becomes a guiding document for development of trade and economic cooperation.2006 was a friendship year for China and India and was a year of milestone in diplomatic history.
China-India trade increased fast in recent years that trade value kept growing at a high speed. Bilateral trade increased from 2.914 billion USD in 2000 to 18.703 billion USD in 2005, with 45% average increase annually. It reached 24.9 billion USD in 2006, which realized the target "made by leaders of the two countries in advance. According to China’s statistic, India was the 10th biggest trade partner of China in 2006. And China became the 2nd biggest trade partner of India in 2005-2006 fiscal years in accordance with India’s statistic.
India developed infrastructure construction with great effort in recent years, especially that a great deal of private enterprises invested with enthusiasm, planed to newly build a set of infrastructure facilities like road, bridge, railway, port and power station, so that huge market of contractual projects emerged. Chinese enterprises possessed great predominance in such fields and they gained great progress in Indian contractual projects market, especially in cash and owner financing projects, through years of exploration.