Gen Suhag, who is on a four-day visit to China, met Gen Liu, in Nanjing, capital of eastern China's Jiangsu province, an official statement said.
They exchanged views on maintenance of peace and tranquillity along the Line of Actual Control (LAC), terrorism and enhancing military-to-military exchanges, it said.
Gen Suhag also extended an invite to Gen Liu Yuejun to visit India, the statement added.
Gen Suhag is visiting China at the invitation of General Fan Changlong, a Vice Chairman of China's Central Military Commission (CMC).
While relations between the two militaries improved with visits by high-level officials including defence ministers, officials say the relations remained tenuous with steady increase of Pakistan-related issues affecting their growth.
Gen Suhag has held talks with another CMC Vice Chairman General Xu Qiliang and head of China's ground forces Gen Li Zuocheng during the visit.