M.D. Nalapat writes on THE CHINA FACTOR IN INDO-PAKISTANI DETENTE, and argues that while India's emergence as an alternative to China for foreign direct investment (FDI), China is more concerned about US-Indian rapprochement:

Should India emerge as an alternative destination for FDI, the PRC would be a loser of the India-Pakistan detente. However, for Beijing, what is of even greater importance than this economic cost is to ensure that New Delhi and Washington do not enter into a military alliance that would subvert the PRC's determination to displace the United States as the primary power in Asia. Thus, China can be expected to continue its current policy of robust and conciliatory engagement with India, a policy that in turn will increase the pressure on the Pakistani Army to continue to search for a stable detente with New Delhi.

Still, China and India May Reduce Poverty by 2015:

A U.N. report assessing progress of the millennium goals also noted that the "Asian miracle" allowed a dramatic reduction of overall poverty incidence in the region from 34 percent to 24 percent between the early and late 1990s, although 768 million people in the region still live on less than $1 a day.

Let's hope both economies develop.