Relations with India have also improved considerably. After years of competition, general distrust between the two (mostly over China's close relationship with Pakistan and India's with the former Soviet Union) and a border war, relations in the 21st century between the world's two most populous states have never been more harmonious, as they have started to collaborate in several economic and strategic areas. Both countries have doubled their economic trade in the past few years, and China became India's largest trading partner in 2010. The two countries are planning to host joint naval exercises. In 2003, China and India held negotiations for the first time since the Sino-Indian War of 1962 on a major border dispute: however, the dispute over Aksai Chin (formerly a part of the Indian state of Jammu and Kashmir) and South Tibet (China) or Arunachal Pradesh (India) is not settled and plagues Sino-Indian relations. While New Delhi has raised objections to Chinese military-aid to arch-rival Pakistan and neighbouring Bangladesh, Beijing similarly objects to India's growing military collaboration with Japan, Australia and the U.S.