In this modern interconnected world, states are relying on each other for their national interests in terms of economy and defense assistance. China and India are also relying on each other for their national and regional interests despite having border issues. In this research, China and Indian partnership have been view under the theoretical framework of the ‘theory of liberalism’ which highlights state relations to meet their national interests by using a descriptive research method. Also, explore the implications of external factors on the state relations, and their setbacks affect their relations under such circumstances how they will balance their relations, and gain maximum benefit from it.