"The Chinese side has noticed the report and welcomes the latest development in the Pakistan-India relationship," Foreign Ministry Spokesman Lu Kang said.
He was responding to a question about Modi's surprise visit to Lahore while on way form Kabul yesterday during which the two prime ministers met at Sharif's residence.
Lu said Pakistan and India are important countries in south Asia and the improvement of their relationship will be significant to regional peace, stability and development.
Modi stayed for over two hours in Lahore on his way back home from Afghanistan yesterday during which he held talks with Sharif at his Raiwind house.