The New Year celebration in the Bumla sector in the northeastern state was in accordance with the agreements reached by both sides who expressed good wishes to each other through this event, Chinese Foreign Ministry spokeswoman Hua Chunying told a media briefing here.
She was responding to a question on the New Year get-together between the troops on the India-China border in Arunachal Pradesh.
It was resolved subsequently with both sides withdrawing simultaneously from the area.
Hua said events such as the New Year celebrations will enhance exchanges and mutual trust between the border guards.
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"This way it will contribute positively to the peace and stability of the border areas," she said.
"To maintain peace and stability at the borders, we would like to work with the Indian side to follow the important consensus reached by the leaders of the two countries to further improve the relations of the border troops and jointly safeguard the peace and tranquillity of the border area.
She also referred to the Border Defence Cooperation Agreement (BDCA) reached between the two countries outlining measures for the border patrols of the two sides especially when they come face to face.
China claims Arunachal Pradesh as southern Tibet.