■"On the move: Asiaís giants take different routes in pursuit of economic greatness," by Martin Wolf, Financial Times, 23 February 2005, p. 13.

■"A share of spoils: Beijing and New Delhi get mutual benefits from growing trade," by Edward Luce and Richard McGregor, Financial Times, 24 February 2005, p. 13.

I love all that talk about how weíre going to use India to balance China militarily in Asia. People who push that line simply are not paying attention. China and India themselves see their dual rise as very complimentary.

Yes, there are key differences, as Martin Wolf points out in his excellent piece:

Both are the heirs of great civilizations. But Chinaís civilization is inseparable from its state, while Indiaís is inseparable from its social structure, above all the role of caste.

This difference permeates the two countriesí histories and contemporary performance. As Lord Desai of the London School of Economics has noted, ìfor India, the problem [is] achieving unity in diversity.î China, however, is a ìunitary hard state, which can pursue a single goal with determination and mobilize maximal resources in its achievementîÖ

China has accept both growth and social transformation. India welcomes growth but tries to minimize social dislocation. The Chinese state sees development as both its goal and the foundation of legitimacy. Indian politicians see the representation of organized interests as their goal and the foundation of their legitimacy. Chinese politics are developmental, while Indiaís remain predominately clientelist.

Wolf sees both countries as having to reform their political and economic institutions greatly in order to achieve further development, but like me, he sees this as ìboth constraints and opportunities.î

And you know what? Both nations see each other increasingly as an opportunity. Bilateral trade is skyrocketing, and economists and planners on both sides are coming to the realization that there is a lot of complimentarity in their development pathsóone focusing on manufacturing and the other on services:

India and China are even exploring ways of joining forces to find cheap sources of supply and boost their competitiveness. There is increasing awarenessóespecially in Indiaóthat, far from competing in a zero sum game, both countries are growing at such a speed that there is enough room for each to accommodate greater productive capacityÖ

ìThe issue is not competition between India and Chinaóthere is no way production can keep up with demand in either country,î says a senior executive at Tata [Indiaís biggest private-sector consortium]. ìThe real question is how quickly what remains of global production will move to China, India and Brazilî Ö

The two countries are also tentatively exploring areas of co-operation, for example as partners for joint purchases in markets such as energy and commercial aircraft. Such a prospect, which Boeing or Airbus would not welcomeóis so far not much more than talk. Nevertheless, there is a determination in both capitals to consider the unmatchable economies of scale that would be available to them as joint buyers of some of the materials and technology that both countries lack.

A side story on ìStrategic parity prompts a neighbourly respectî gets to the point of the military-market nexus quite clearly:

Indiaís economic emergence is openlyncouraged by the 10-member Association of South East Asian Nations, which has become increasingly concerned about the growing preponderance of China. In much the same way as the US hopes India will become a geopolitical counterweight to China over the next decades, ASEAN hopes India will become an economic counterweight.

That may be premature. India, with its sensitivity about sovereignty, bristles at being asked to play roles on behalf of other countries. But economic ties between India and China will continue to grow and a convergence of the two giantsí broader interests at the World Trade Organization and elsewhere will help bring them closer together.

Like I say, lock in at todayís prices or pay higher ones tomorrow, but Chinaís rise will embed them deeply within the Core on security affairs. We can seek to lead that process or we better be prepared to get out of the way.