Antony, who arrived here last night on a four day visit, started off his tour with delegation level talks with Chinese Defence Minister General Chang Wanquan.
The talks lasted for an hour, officials said.
Antony, the first Indian Defence Minister to visit China since 2006, later called on Premier Li and discussed the follow up steps initiated by both the countries after his historic visit last month, which took place in the backdrop of Chinese incursions in the Depsang Valley in Ladakh area in April, setting off new round of border tensions.
The peaceful coexistence of China and India is good blessing for both countries and Asia and also for promoting peace stability and development, he said.
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Gen Wang later hosted a banquet in Antony's honour.
The two sides are currently finalising the Border Defence Cooperation Agreement (BDCA) which among other things is expected to improve mechanisms to prevent any tensions at the Line of Actual Control (LAC) as the two countries made efforts to resolve the border dispute.
The two sides are also finalising plans to hold military exercises later this year in China resuming it after 2008.
Similar exercises were held in 2008 at China's Kunming city.
The drills were later disrupted over China's new policy of granting visas on piece of paper to residents of Jammu and Kashmir even denied visas to a top General Northern Command after which India called off military contacts.
The issue was sorted in 2011 leading to resumption of the contacts once again.
Antony is due to visit a military installation and defence teaching institution here tomorrow before leaving for home on Sunday.