Xi Jinping's trip to the site, next to a major Chinese-funded commercial port, will provide a vivid reminder of Beijing's growing economic clout in India's backyard ahead of his maiden visit to New Delhi next week.
Prime Minister Narendra Modi has moved quickly to engage with traditional rival China after taking office in May, inviting Xi to India.
That may not worry China too much. Modi's close relationship with Tokyo, on the other hand, is likely to raise alarm bells in Beijing that analysts say he may be able to use to his advantage.
Modi enjoys a particularly warm friendship with his Japanese counterpart Shinzo Abe.
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Both India and Japan are wary of what many see as Beijing's growing territorial assertiveness, and Washington is eager for them to step up their cooperation by way of counterweight to China.
Developing India's crumbling infrastructure is a key priority of the Modi government, which has said it will upgrade existing railways and build the country's first high-speed train line.
Liu also said the two sides would seek to push forward negotiations on their disputed border during Xi's visit.
While the frontier between China and India has never been formally demarcated, the two sides have signed accords, and analysts said Beijing was eager to maintain the peace with its western neighbour.
"China sees India as a development partner," Liu told reporters in Beijing. "China has not and will not encircle India."
Relations between the nuclear-armed neighbours are still characterised by mutual suspicion, in large part as a legacy of a brief but bloody war in 1962.