Perhaps it is too soon to speak of rapprochement between China and India, but as US protectionism threatens them, they appear to be both seeking common ground, giving fresh momentum to the intra-Asia trade, adding value to the volume that already makes it the world's biggest.

So far, China seems to be doing most of the courting if only because it is the main target of American wrath. India is also a target, as is Canada and Mexico, but the animosity is much diluted.

Beijing now shows signs of wanting to treat its major trading partners well in case US tariffs force Chinese exporters to depend on Asian markets, analysts say, according to New York's Forbes magazine, which jokingly refers to itself as the "Capitalist Conspiracy".

 “It’s essentially having an insurance policy,” said Song Seng Wun, an economist with the CIMB private banking unit in Singapore. "China is probably thinking that we don’t know how things will pan out with the US, but in the meantime, China should see what’s best for themselves.”

China is India's largest trading partner by value, with India importing US$59.1 billion through October, an increase of 16.2 per cent year on year, according to IHS Markit data.

China is also the No 4 destination for Indian exports, with $9.7 billion worth through October, which is a year-on-year increase of 44.7 per cent. Sino-Indian trade had already reached $65 billion by 2013, more than 10 times the figure of a decade earlier.

But there are many obstacles to clear away before anything like an Entente Cordiale can be achieved. India says China has failed to honour its promises to ease market access to India's farm produce, IT goods and pharmaceutical products.

Chinese exports to India reached 2.8 per cent of total Chinese exports in 2016, while China received 17 per cent of India’s total exports in the same period.

That's not to mention China's diplomatic support and military cooperation with India's arch-foe Pakistan and a series of long-festering border disputes which has had Indian and Chinese troops face each other bayonets fixed over control of the Doklam Plateau.

Nor is India happy about China's land grab of the Spratly Islands that lie in path of the main Asia-Europe trade lane. Nor was Chinese leader Xi Jinping's elevation as President for Life reassuring to those who were hoping for a less aggresive China.

But with trade war drums beating in the US, China may be ready to compromise on the testy Indian front and mitigate what may yet become a perilous situation for both nations, facing as they do, a list of import tariffs levied by the Trump administration.

A more accommodating China has hinted at relaxing rules on some American imports and suggested dialogue rather than escalating a potential trade war.

As well, China is now taking steps to protect itself "if a trade war comes to pass, and looking to India as a potential ally, although India's Prime Minister Narendra Modi's government isn't all too happy with its own China trade deficit," says Forbes.

Former Indian Commerce and Industry Minister Nirmala Sitharaman recently expressed concern over the deficit. Such concerns appear to have prompted Chinese Commerce Minister Zhong Shan to “promise” to address the issue, India’s own commerce ministry reported.

Some are hopeful for a diplomatic thaw. “A closer trade relationship with India means more opportunities in the future, as India is expected to be the fastest-growing economy for the next decade,” said Felix Yang, an analyst with the financial advisory firm Kapronasia in Shanghai.

India’s GDP, the world’s fourth-largest, is growing at 6.5 per cent - close to China’s own rate of acceleration.

Yet China has cause to fear India’s economic expansion as Indian wages are lower than Chinese, thus keeping manufacturing costs down, said Stuart Orr, professor of strategic management at Deakin University in Australia.

 “If India increases its imports from the US, the doors will be open for India to export more to the US as well,” Prof Orr said. “As China’s wage rates continue to rise, China has every basis for fearing an India with a developed manufacturing capability, fueled by the demand of more exports to the US,” he said.

When the Indian and Chinese commerce ministers met recently in New Delhi, they didn’t reach any agreement worthy of announcement, but China’s minister said his country would keep working with India to reduce trade differences.

But part of India's plan to rebalance it trade accounts is to rely more on services to and from the emerging Asian economy.

Because of such buoyancy, both Singapore's APL and Hong Kong-based Gold Star Line, intra-Asia specialists feel the time is ripe to upgrade ports and harbour as megaships in the 20,000-TEU range displace 8,000- to 10,000-TEUers on east-west routes, and now find themselves working in regional trades, displacing old panamaxes that have now become feeders. 

To this end APL has deployed vessels of up to 9,000 TEU on the China-India route. "Overall, the intra-Asia market is expected to grow five per cent in 2018. Southeast Asian countries are likely to see strong trade growth while trade between China and India is expected to rise in line with India's economic development," said APL.

Said Gold Star managing director Danny Hoffman: "Intra-Asia trade will continue to grow both for reefer and freight and I believe that upward trend will continue."

Another trend that may well contribute the intra-Asia trade is the return of hub-and-spoke shipping, brought about by the increasing number of mega-ships and the higher prices for short-sea tonnage are fetching in the charter market, says IHS Media.

This accounts for the drop in idle containerships of more than 500 TEU. Just 99 ships, representing a total of 377,784 TEU, were idle as of January 8, down from 950,000 TEU a year earlier, said Alphaliner, the Paris-based research house.

In response to anticipated changing needs, much attention has been devoted to the dredging of India's comparitively shallow ports, to give larger ships access to more ports closer to its consumer-rich hinterland.

There are many new services that show intra-Asia trade growth. The China-East India loop, branded the CI3, is a vessel-sharing agreement between Cosco Container Lines, IAL, OOCL, and XPress Feeders, deploying 4,250-TEUers and rotating through Shanghai and Ningbo, Hong Kong, Shenzhen-Shekou, Singapore; Port Klang (West Port and North Port), Chennai, Kattupalli Port Klang (North Port), Singapore and back to Shanghai, on a 35-day rotation.

APL offers 20 services that call the major ports of Ho Chi Minh City, Hanoi, Haiphong, Da Nang and now Quang Nam. Taiwan's Yang Ming, Hong Kong's OOCL and ONE offer the JMV (Japan-Malaysia-Vietnam service, rotating 2,800-TEUers through Shenzhen-Shekou, Osaka, Kobe, Nagoya, Yokohama, Tokyo, Hong Kong, Singapore, Port Kelang, Singapore, Cai Mep, Shenzhen-Shekou, Hong Kong and back to Osaka.

Zim unit Gold Star Line offers GCX service, which operates with six 6,500-TEUers calling weekly at Xingang, Qingdao, Shanghai, Ningbo, Shenzhen-Shekou, Shenzhen-Da Chan Bay, Port Kelang, Colombo, Karachi, Jebel Ali, Colombo, Port Kelang, Singapore and back to Xingang.

New trade statistics reveal positive developments with India’s exports to China during October surging 72 per cent year on year while China's exports to India rose 4.2 per cent, according the Delhi-based PHD (Progress Harmony Development) Chamber of Commerce and Industry.

"With the shift in preferences from Chinese products, the terms of trade are expected to improve in favour of India," the PHD Chamber stated after a survey.

The industry group also said with domestic manufacturing strengthening, apparently owing to the "Make in India" programme, India's sourcing from China has dramatically switched from intermediate products to capital goods.

While prospects for the intra-Asia trade appear to be brightening, Helsinki-based Nordea Bank, the biggest financial services company in Scandinavia, sounded a note of caution for investors.

 “You have the growth and the opportunities around the region, and yet you have the uncertainty and ambiguity of regulatory frameworks," said Corrado Forcellati, Nordea's man in Singapore.

 “Each country - be it China, Indonesia or Vietnam - has a very protective regulatory framework for their currencies or for the in- and outflow of capital. China is a good example of that,” he said.

The intra-Asia trades like everything else is subject to the same fads and fashions that are common to the world at large.

First, sustainability sells. “Sustainability is of great political interest so the sustainability agenda affects many political decisions that we are seeing in different countries,” said Mr Forcellati.

Ditto digitisation: “When it comes to cross-border business that is highly regulated and demands a lot of documentation and administration, then the technology is not there yet. It’s still a little bit old-fashioned because of regulation.

 “In an area like trade finance you can make use of disruptive technology available today. But countries, even between companies, haven’t agreed on a common standard," he said.

"Thus, there is not really a disruptive trend yet. So where we are spending time is to definitely follow and be part of discussions at different levels about creating standards, which will enhance not only the overall risks’ understanding but also facilitate the required regulatory approvals.