Chinas growth may decelerate as the property sector cools and if Beijing accelerates economic reforms. Indias economy is expected to rebound after headwinds from taxation changes and demonetisation, Dan Coats, Director of National Intelligence, said in his testimony before the Senate Select Committee on Intelligence.
"We expect relations between India and China to remain tense and possibly to deteriorate further, despite the negotiated settlement to their three-month border standoff in August, elevating the risk of unintentional escalation, Coats said during the hearing on 'Worldwide Threat Assessment' of the US intelligence community.
China, which has been reinforcing its hold on the disputed SCS with military installations in the shoals and reclaimed islands, claims sovereignty over almost all of it.
Philippines, Vietnam, Malaysia, Brunei and Taiwan have counter claims over SCS.
Coats said regional tension will persist due to North Koreas nuclear and missile programmes and simmering tension over territorial and maritime disputes in the ECS and SCS.
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