At the beginning of the Tibetan uprising in 1959, the Dalai Lama and his followers fled Tibet with the help of the CIA to protect their lives in India. The Indian government granted them asylum, and that is it from here that the Panchsheel agreement between India and China broke down. Their first formal treaty codification took place in 1954 in an agreement between China and India – the trade and transport agreement (exchange of notes) between the Tibet region, China and India, signed in Beijing on April 29, 1954.   Panchsheel was subsequently adopted in a series of resolutions and declarations around the world. The agreement provides that «do not interfere in the internal affairs of the other.» The Panchsheel Agreement is part of mutual relations and trade between India and Tibet on the territory of China. (This is based on former President K.R. Narayanan`s keynote address at a seminar in Beijing in June 2004 to mark Panchsheel`s fiftieth anniversary.) At the time of India`s independence, relations between India and China had not been so bitter since 1962. With America preferring Pakistan at the time, India felt it was good to maintain friendly relations with its neighbour, China. After the 1962 war, which declared that the agreement was not welcome, India and China renounced full diplomatic relations after a 15-year hiatus. Although the immediate Prime Minister Nehru tried to establish good relations between the two countries through the Panchsheel agreement, he and the 1962 war between the two countries failed. Chinese President Xi Jinping said on Tuesday that the country was ready to cooperate with India to try to lead the Panchsheel agreement during a meeting with Prime Minister Narendra Modi on the sidelines of the Brics summit in Xiamen. The Panchsheel agreement is part of reciprocal relations and trade between India and Tibet on the territory of China.
According to V. V. Paranjpe, an Indian diplomat and a Chinese expert, Panchsheel`s principles were first publicly expressed by Zhou Enlai: «While he eventually received the Indian delegation for Tibetan trade negotiations.