Officials said this was the first time China deputed a high-ranking leader like the Vice President to the reception to show the importance it attaches to emerging ties with India.
An official of the rank of Vice Foreign Minister attended previous Republic Day receptions.
"China will make joint efforts with India to strengthen strategic mutual trust, expand friendly exchanges and cooperation, properly handle issues left over from history and strengthen cooperation in major and regional issues and take our strategic partnership to new heights," Li said.
During the reception hosted by new Indian Ambassador Ashok K Kantha, Li formally inaugurated the Year of Friendly Exchanges that was agreed during the visit of Prime Minister Manmohan Singh here last year to boost bilateral understanding and cooperation.
More From This Section
Highlighting the importance of growing relations between the two countries, Li said they have vast potential and broad prospects for cooperation.
Kantha, in his address, described 2013 as a year of rich harvest in India-China relations. He referred to Singh's two meetings with President Xi Jinping last year and the mutual exchange of visits by the two prime ministers in the same calendar year for the first time in 59 years.
He expressed his determination to build on these strong foundations and strengthen India-China strategic partnership.
A performance of Indian dance and music by a ICCR troupe was also organised on the occasion.
A similar function is expected to be organised by the Chinese Embassy in New Delhi next month to formally inaugurate the Year of Friendly Exchanges there.