Swamy said the two countries should strive to achieve these objectives by holding "secret" talk at the foreign ministers-level.
Swamy, who was in China this week, held talks with Chinese officials and scholars at major think-tanks.
"There are two issue India and China should have secret talks at the level of Foreign Ministers: One is the extent China would feel compelled to intervene in case we take drastic defence action against Pakistan for terrorist attacks," Swamy told PTI.
Officials of the four countries had held their first meeting last year to address their security concerns over China's aggressive behaviour in areas like the disputed South China Sea.
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Swamy said Chinese officials asked why India is rapidly "embracing" the US.
"In my opinion improvement of relations between India and China could kick start if we have only two agendas. That meeting should be done not by official perhaps at the officials but at the level of Foreign Ministers," he said.
Swamy said he had explained to the Chinese officials that Pakistan Army is gradually turning Jihadi army as most of the Brigadier level officials who is set to succeed the Corps Commanders sporting long beards and pray five times.
There could even coup by the Pakistan Army in future to take control of the government, he said.
The relations between India and China dipped to new low last year after the 73-day standoff Dokalam which was resolved on August 28.
Swamy said several rounds of NSA-level talks had not worked so far.
On the border issue, he said China should accept McMahon Line as it accepted the same in case of Myanmar. Chinese officials said that Myanmar never demanded to hand over the territory back unlike India hinting that India should adopt a more gentle approach.
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