Their first formal treaty codification took place in 1954 in an agreement between China and India – the trade and transport agreement (exchange of notes) between the Tibet region, China and India, signed in Beijing on April 29, 1954.   Panchsheel was subsequently adopted in a series of resolutions and declarations around the world. At the time of India`s independence, relations between India and China have not been as bitter since 1962. With America preferring Pakistan at the time, India felt it was good to maintain friendly relations with its neighbour, China. China has often stressed its close connection to the Five Principles.  It had proposed it as the five principles of peaceful coexistence at the beginning of the negotiations that, from December 1953 to April 1954 in Delhi, between the delegation of the Government of the People`s Republic of China and the Delegation of the Government of India on relations between the two countries with regard to the disputed areas Von Aksai Chin and what China calls the Southern Stretcher and India Arunachal Pradesh , took place. The aforementioned agreement of 29 April 1954 was to last eight years.  When it broke down, relations were already angry, the provisions of the extension of the agreement were not resumed and the Sino-Indian war broke out between the two sides. (This is based on former President K.R. Narayanan`s keynote address at a seminar in Beijing in June 2004 to mark Panchsheel`s fiftieth anniversary.) At the time of India`s independence, relations between India and China had not been so bitter since 1962. With America preferring Pakistan at the time, India felt it was good to maintain friendly relations with its neighbour, China. After the 1962 war, which declared that the agreement was not welcome, India and China renounced full diplomatic relations after a 15-year hiatus. Although the immediate Prime Minister Nehru tried to establish good relations between the two countries through the Panchsheel agreement, he and the 1962 war between the two countries failed.
Chinese President Xi Jinping said on Tuesday that the country was ready to cooperate with India to try to lead the Panchsheel agreement during a meeting with Prime Minister Narendra Modi on the sidelines of the Brics summit in Xiamen. The Panchsheel agreement is part of reciprocal relations and trade between India and Tibet on the territory of China.