In 2005, China and India established a “strategic cooperative partnership,” which led to rising optimism about China-India relations. This article discusses prospects of the China-India strategic partnership from the perspective of benefit and cost. The China-India strategic partnership is regarded as an attempt by the leaders of the two countries to change bilateral relations from non-cooperation to cooperation. The key to successful transformation lies in the fact that decision makers of both sides can recognize that common interests gained from cooperation is higher than interests gained from non-cooperation and independent action. A lack of mutual trust between China and India is the main reason for high costs of cooperation. The foundation and principles upon which the strategic partnership is constructed, characteristics of common interests including common identity as developing countries, economy focus, emphasis on equality, volatility, often increase the trust deficit. As a result, cooperation between China and India on politics, economy and security has been limited. For China and India, the strategic cooperative partnership has been a move of pragmatic engagement. In the short term, peace along the border can be maintained. However, substantial cooperation for mid- and long-term might be limited.