A disquieting situation was brewing between the two Asian giants when Jaishankar, who played a key role in progression of the complex and crisis ridden Indo-US nuclear deal, took over the assignment here in August, 2009.
As he took charge, news was out about China beginning to issue stapled visas to residents of Jammu and Kashmir.
The two countries witnessed yet another major stand off, when Chinese troops pitched tents at Depsang Valley in Ladakh in April ahead of Premier Li Keqiang's visit to India, his first abroad as Prime Minister.
After differences over the two major issues concerning the border and sovereignty ironed out, this year turned out to be a watershed year for India-China relations.
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Premiers of both countries visited each other in the same year for the first time after Prime Ministers Jawaharlal Nehru and Zhou Enlai visited each others' countries in 1954 before the 1962 war.
On the political front, during Jaishankar's stint, the two countries made significant progress since 2010 specially forging key alliance in the BRICS (Brazil, Russia, India, China, South Africa) as well as in the global climate change negotiations, providing strong leadership to developing countries.
While bilateral trade progressed rapidly touching a record of over USD 74 billion in 2011. Highlighting of massive trade deficit amounting to over USD 30 billion also become part of Indian diplomacy in the last four years.
In his interactions with the media, Jaishankar has called for less emotional Indian approach towards issues concerning China. He pushed for introduction of Chinese language teaching in Indian schools and establishment of sister city ties.
Jaishankar, 58, who played key role in recent diplomatic progress, also leaves a new benchmark by becoming the longest serving Indian Ambassador in China as his tenure lasted for four years and four months.
He surpassed the tenures of some of long-serving Indian Ambassadors here like Brajesh C Mishra, the Charge d'Affaires from 1969-73 and former envoy C V Ranganathan, who held the post between 1987 and 1991.