While the two leaders are unlikely to let this confrontation in the ADB come in the way of broader deliberations, sources said, the Chinese intransigence at the ADB has definitely left a sour taste.

Pakistan voted in India’s favour but not before it made a statement on how the ADB should have a policy on funding in “disputed areas”.

It’s learnt that Beijing had been leaning on Islamabad to show solidarity but the latter was constrained by the fact that its own plan has certain projects in the Northern Areas. Given its larger voting share, India could have created roadblocks for Pakistan’s plan in case it supported China. Moreover, Pakistan had no alternate funding arrangement.

Since March last week, when China first raised the objection, India had been lobbying hard with the ADB to rule out Chinese objections on the grounds that the Bank could not entertain bilateral disputes. However, the growing Chinese clout had ADB writing to India that it must find ways through bilateral channels to get Beijing to remove its objection.

India objected to ADB’s suggestion and went to the extent of conveying that if this was to be the approach, then India would rather withdraw its plan and “rethink” its relationship with the ADB.