It is a very good gesture to keep the dialogues between China and India open to ameliorate tension between these two countries.  However, one has to be very careful in displaying all the defense equipment and strategies in front of Chinese military personnel.  We all know that Chinese government has a long range objective and i.e. to establish its hegemony in that part of the world.  Their assertive attitude and claim over the South and East China Sea is a clear indication of their hegemonic posture.  Needless to say, China has been occupying thousand and thousand square miles of Indian territory in the Leh/Ladakh area since 1962 and claiming Arunachal Pradesh as part of China.  What does it show?  It shows Chinese expansionist policy in the region which is basically instrumental in creating a bad blood between China and all other nations situated on the embankment of South and East China Sea.   One can easily infer that by arranging and agreeing to these military/naval/air force exercises, China is curious to ascertain the might of Indian forces and also to judge the efficacy of Indian armament.  HENCE, THERE IS A GREAT NEED TO BE MORE CAREFUL IN AGREEING TO SUCH EXERCISES.