The violent skirmish on June 15 between soldiers from China and India on the so-called Line of Actual Control in the Himalayas - the de facto border between the two countries - is threatening to spill over into the economic realm. This would be a lose-lose proposition. But the skirmish should serve as a wake-up call to both countries on how they should manage their burgeoning economic relationship going forward.

The reaction in India to the brutal killing of at least 20 Indian soldiers during the brawl - although there were an undisclosed number of Chinese casualties as well - has been furious.