Rather, it lies in the fact that the two countries resolved to build a broad-horizon relationship in a remarkably relaxed manner.

Mr Hu came here against the unfortunate reiteration of China's claim to Arunachal Pradesh. But the negative effect of this undiplomatic repetition of Beijing's old position was soon wiped out.

Mr Hu assured India that the China-India relationship is not merely a bilateral matter, nor defined by political expediency. China views it "from a strategic and long-term perspective" -- the very words it uses to describe traditionally close China-Pakistan relations.

India had four major concerns: China's position on sharing rivers, especially the Brahmaputra, which it is allegedly diverting; Beijing's commitment to de-linking its relations with Pakistan from those with India; its likely stand on Asian-level cooperation involving India; and China's attitude to the United States-India nuclear deal and to India's claim to a permanent seat on the United Nations Security Council.

India and China agreed to establish an expert-level committee on rivers. Mr Hu emphasised the principle of separation in China's relations with India and Pakistan, first enunciated 10 years ago.

China also supported India's proposals for greater coordination between the "BCIM countries" (Bangladesh, China, India, Myanmar).

Most important, Mr Hu said China wouldn't stand in the way of approval of the US-India nuclear deal by the Nuclear Suppliers' Group. Nor will it oppose India's Security Council bid.

It'd be naive to expect China to proactively recommend the nuclear deal to the NSG. It'll wait to see other members' reaction. But China probably won't lead the opposition to India -- as it did after the 1998 nuclear tests.

This, like the signing of a Sino-Indian nuclear cooperation agreement, suggests that China has changed its strategy towards India because it recognises India's growing global importance.

It's in this light that we must see Mr Hu's Vigyan Bhavan address. "The course we chart and the pace of our development have major implications for peace and development of Asia and beyond," he said, stressing India and China's "common interests" in "developing multilateral cooperation for creating a multi-polar world."

Mr Hu said China doesn't seek "selfish gains" in South Asia, but wants to play "a constructive role" in promoting peace and development there.

He also said: "China sincerely welcomes India's development, supports a greater role for India in international affairs, and sincerely wishes India even greater achievements in the years to come."

It's hard to dismiss this as rhetoric calculated to deceive India. Mr Hu must be acutely aware that the world is watching China and India as emerging Great Powers and home to two-fifths of humanity.

How China conducts its actual diplomacy with India remains to be seen. But its policy stance has already shifted.

This opens a historic opportunity for India and China to build a fruitful partnership. India must not play a hostile "balance-of-power game" with China, as urged by our pitiably pro-US strategic experts who want India to become Washington's junior partner.

This doesn't argue that all's well with China-India relations. Several disputes and disagreements remain. The border dispute cannot be wished away. But India and China are closer than ever to resolving it.

At any rate, India shouldn't allow the dispute to impede growing relations with China in trade, investment, cultural exchanges, science and technology, and people-to-people interaction.

India shouldn't be overly concerned at deepening Sino-Pakistan relations. China and Pakistan have long been strategic partners. Their special military relationship is now reflected in China's offer to sell airborne warning and control systems (AWACS) to Pakistan, to help it match India's capacities, aided by Israel and the US. India too has its supporters and arms providers.

We're often told China probably transferred clandestine nuclear technology to Pakistan. But China also sold heavy water and enriched uranium to India.

It's unlikely that today's China, keen to appear "responsible," will behave the way it earlier did.

We shouldn't let past perceptions veto a cooperative relationship with China on normal, honourable terms. India must discount the propaganda that China is "encircling" India, by building Gwadar port in Balochistan.

India has too much military strength to feel intimidated by this.

Ironically, those who promote hostility with China demand that India should follow an amoral, real-politik-based foreign policy approach, exactly like China's! India should adopt the "enemy's enemy is a friend" premise and emulate China's cynicism -- blatantly visible when Beijing allied with the US against the USSR.

This is a recipe for removing the moral backbone from foreign policy-making altogether. It'll reduce India's broad-horizon policy to a petty exercise. India won't earn the world's respect if it behaves parochially, without reference to universal principles. Indeed, it will damage its own standing.

India should choose a radically different approach. It can leverage its great strengths: as a long, continuous civilisation; as the world's largest democracy; as one of its most plural societies; its history as a campaigner for great causes like decolonisation, nuclear disarmament and opposition to hegemonism, and an advocate of North-South equality.

This will impart a moral edge to India's policy and contribute to making the world a better place.

If Indian leaders join hands with China to demand alternative approaches to economic policy and management of the international order, that could open up avenues of non-market-based development appropriate to the needs of underprivileged peoples and voiceless countries.

But this demands a radical change in domestic policies, including rejection of market fundamentalism, pursuit of people-centred development, principled secularism, and extension of human rights.

China's rulers are probably too devoted to market-based strategies to summon up the will to do any of this. But are India's rulers ready?

Praful Bidwai is an eminent Indian columnist.