Chinese Premier, Li Keqiang, alluding to recent skirmishes on their Himalayan border, acknowledged on Monday, that there were some problems with good friend India but said that the two Asian giants should take a leaf out of their vast history to resolve all issues peacefully.
"Since we are strategic partners and we are good friends that can speak to each other with candour, so we do not deny that there are some problems between the two sides," said Li, while making a joint statement with his Indian counterpart, Manmohan Singh in New Delhi.
"Both sides believe that with regard to the boundary question, one that is left over by history, the two sides have, over time, established the principles for settling the question and in the meantime we have worked together to maintain tranquillity and peace in the border areas," Li added.
Li said that both India and China have established certain principles to resolve the border disputes but also called for improvements in the existing mechanisms and make them more efficient.
"In our history, our two civilizations have had uninterrupted and in-depth exchanges. Today, facing the future, we see enormous potential for the common development of both countries. We hope that the seeds we sow today in spring, will be harvested in autumn and that there will be more bountiful fruits to show and in that context we look forward to Prime Minister Manmohan Singh's visit to China, later this year so that, together, we can harvest the outcomes of cooperation and of friendship between our two countries," Li further added.
According to analysts , Li is seeking to build trust with India on his first foreign trip since taking office, which comes just a few weeks after a military standoff between the Asian giants on their border in the Himalayan mountains.
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Li, the number two in the Chinese leadership offered India a "handshake across the Himalayas" and said that together the emerging economic giants could become a new engine of the world economy.
China and India disagree about the demarcation of their long border and fought a brief but bloody war 50 years ago. There has not been a shooting incident in decades, but the long-running dispute gets in the way of improving economic relations between the world's two most populous nations.
Earlier on Monday, in an impromptu speech after an official welcome ceremony at India's colonial-era presidential palace, a relaxed-looking Li, stood with Prime Minister Manmohan Singh and said he wanted to build trust and cooperation on his trip.
Prime Minister of India, Manmohan Singh said that special representatives of both countries are expected to meet soon to chalk out a more permanent solution to the festering problem.
"We agreed that our special representatives will meet soon to continue discussions, seeking early agreement on a framework for a fair, reasonable and mutually acceptable boundary settlement," said Singh.
Earlier on Sunday the two leaders held closed-door talks, shortly after Li arrived in the national capital.
Singh told Li that friction on the border could affect relations. He pressed his counterpart to do more to redress the trade imbalance that has left a $29 billion deficit with China at a time India is struggling with a record current account gap that has emerged as its main economic weak point.
Bilateral trade between the two countries touched $73 billion in 2011, making China India's largest trade partner, but slipped to $66 billion last year.
Singh told Li, it was important to balance out trade as the two countries aim for $100 billion in bilateral trade by 2015.
"I conveyed to Premier Li, our concerns about the trade deficit and sought increased market access to China for our exports and investment. I also invited increased Chinese involvement in the vast opportunities in our infrastructure and manufacturing sector," Singh added.
Up from next to nothing in the 1990s, trade has been heavily skewed in favour of China. It exports power and telecoms equipment to its neighbour, which as one of the world's fastest growing economies could offer brighter opportunities for business than the stagnant west.
Also raised in the meeting was the issue of the Dalai Lama, who China considers a separatist and who lives in exile in India.
India repeated its position that, the Dalai Lama is a spiritual and religious leader, a senior Indian government official said. On Monday, a protester dodged tight security to unfurl a banner saying, "Tibet will be free", in front of the hotel where Li is staying in Delhi.
The Chinese Premier said in his statement that Manmohan Singh's visit to Beijing later in the year would help reap the harvest that the governments have sowed now.
Prior to the visit, Li said he chose India as his first destination on the four-nation tour to show how important India is for China and also because he had fond memories of visiting the country as a Communist youth leader 27 years ago.
After India, Li is due to visit Pakistan, Switzerland and Germany He is carrying a message that China wants more open foreign relations and should not be seen as a threat.