Indian officials had hoped Mr Wen's visit would help reduce the trade imbalance between the Asian rivals and soften Beijing's increasing assertiveness over disputed territories along their frontiers in Kashmir and Tawang district in India's eastern state of Arunachal Pradesh.
China has angered the Indian government by insisting that all visitors from Kashmir have their visa stamped on a separate sheet – indicating it does not recognise Indian sovereignty – and launching strong attacks on the Dalai Lama and Manmohan Singh, Indian prime minister, for visiting Arunachal Pradesh during last year's election campaign.
Beijing's aggressive approach has been marked by a number of minor incursions by Chinese troops across the MacMahon Line, the imprecise border mapped by British officials during the colonial era
India recently announced that it was planning to deploy an additional 35,000 troops, where both sides have already stationed some 300,000 soldiers each. Both India and China are also building new roads and military airfields along the border.
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