The Panchsheel agreement has been one of the most important relations between India and China to advance economic and security cooperation. A basic assumption of the five principles was that the newly independent States after decolonization would be able to develop a new, more principled approach to international relations. [Citation needed] China has often stressed its close link with the Five Principles.  It had presented them as the five principles of peaceful coexistence at the beginning of the negotiations held in Delhi from December 1953 to April 1954 between the delegation of the Government of the PRC and the delegation of the Government of India on relations between the two countries with regard to the disputed territories of Aksai Chin and what China calls South Tibet and India Arunachal Pradesh took place. The above-mentioned agreement of 29 April 1954 was to last eight years.  At its expiration, relations were already deteriorating, the extension provision of the agreement was not invoked, and the Sino-Indian war broke out between the two sides. Let me now tell you what was contained in this agreement, which leads to criticism of Nehru. After the agreement, tensions between India and China were significantly reduced, leading India to perceive the agreement as very beneficial. The agreement was welcomed everywhere. In the initial phase, after this agreement, slogans of the Hindi-Chinese Bhai-Bhai were launched. It seemed that the two great civilizations of the world had introduced a new way of living together.
But the Hindi Chini siblings were left behind for important things. India had to pay a high price for this. In fact, under the agreement, India accepted Tibet as China`s territory. The rights that India had received with respect to Tibet through the Anglo-Tibetan Treaty of 1904 were given to India all these rights under that treaty. Nehru replied that he attaches the utmost importance to peace in the region and regards China as a trustworthy friend. Its first formal codification in the form of a treaty took place in 1954 in an agreement between China and India – the «Agreement (with Exchange of Notes) on Trade and Transport between the Tibet Region of China and India», which was signed in Beijing on April 29, 1954.   The Panchsheel was later adopted in a series of resolutions and declarations around the world. . When Jawaharlal Nehru arrived in China, he was warmly welcomed. The Chinese government apparatus gathered a huge crowd to welcome him, which overwhelmed Nehru. Upon his return, he assured the country that China would not invade India in any way. He described China as a natural friend of India.
(4) Promote mutual cooperation and mutual benefit. The NEFA (North-East Frontier Agency) of the time and arunachal Pradesh of today, which borders China, are called the McMahon Line, which was adopted jointly by British India, Tibet and China at Shimla in 1914. The Chinese government saw it as a violent border. After India`s independence, China remained silent on this border. In 1952, there was a meeting between India and China on the subject, where India wanted to know what was going on in China`s head. India saw China`s silence as China`s endorsement. .