During a Secretary-level meeting here, the two sides decided to hold Army-to-Army counter-terrorism exercise in China this year. The dates would be finalised during the visit of an Indian Army delegation to China next month.
The Indian delegation was led by Defence Secretary Shashikant Sharma.
At the meeting, the Chinese delegation led by its Deputy Chief of General Staff Lt Gen Qi Jianguo proposed an agreement under which troops of the two countries will not tail each other if noticed during patrolling along the disputed Line of Actual Control, sources told PTI.
However, the Indian side gave no commitment, the sources said. India wants to study the proposal thoroughly and do due diligence before taking any decision.
This was the second meeting between Qi, who is in-charge for Foreign Cooperation and Intelligence in the People's Liberation Army, and Sharma in the last three months after they met at the Annual Defence Dialogue (ADD) in January.
The Chinese side had discussed these proposals informally during the ADD also but India had then asked it to submit these points in a formal manner at a later stage.