Both China and India are striving for fast economic growth and are doing their best to smoothen the way for peaceful development. Through Premier Wen’s visit to India, China and India established a strategic partnership oriented towards peace and prosperity. The Sino-India relationship is embracing a new stage. The emerging China and India are changing the global economic and strategic environments, particularly in the energy field. As the two most populous countries and the two major energy consumers, China and India are competitors in diversifying energy supply, utilizing foreign resources and ensuring oil supply. Their basic common interests, however, make it necessary that the two have to develop as partners. First, state- owned oil companies in China and India are confronted with fierce competition with international oil companies in their overseas operations. A wide gap exists between state- owned oil companies in China and India and international oil companies, regarding capital, technology and management experience. Through joint investments and exploration overseas, mutual interference can be converted to cooperation, resulting in a win-win situation. Next, China and India, by joining hands, will be in a more favorable position in price negotiations with energy exporters. Further, energy cooperation between China and India should cause a positive "spillover effect", furthering energy market integration and security in Asia.
