Jaishankar, who arrived here from Sri Lanka, met Yang, who is the State Councillor and Beijing's Special Representative for border talks between India and China.
In Chinese official hierarchy, State Councillor of the ruling Communist Party of China (CPC) is regarded as the top diplomat functioning directly under the country's leadership.
Welcoming Jaishankar at Zhongnanhai, the seat of power of Chinese leadership, Yang said despite differences, relations between the two sides had a positive growth last year.
Jaishankar is expected to meet Chinese Foreign Minister Wang Yi, besides attending an upgraded strategic dialogue with China's Executive Vice Foreign Minister Zhang Yesui tomorrow.
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Underlining the significance of the strategic dialogue, which was upgraded during Wang's visit to New Delhi last year, China has deputed Zhang, also the head of the influential CPC committee of the Chinese Foreign Ministry, for the parleys.
On his part, Jaishankar said, "it's very good to be back (to Beijing). I come with nostalgia and very good feelings and also a very strong sense of commitment to maintain the relationship".
Referring to the first Strategic Dialogue which he will hold with Zhang tomorrow,Jaishankar said, "this is not just a meeting between me and my counterpart, it is preceded by consultations" on a host of issues.
concerns on CPEC and counter-terrorism in an interview with the China's-state run Global Times.
"For us, there are questions of sovereignty which need to be addressed first," he said in oblique references to CPEC passing through Pakistan-occupied Kashmir (POK) over which New Delhi has already conveyed its protest to Beijing.
The counter-terrorism is one area in which China and India should make special efforts together, he said, without directly referring to China's repeated technical holds since last year to block Indian and US attempts to clamp a UN ban on JeM chief Azhar.
Last year, China twice put a technical hold on India's application to 1267 sanctions committee of the UNSC and again blocked a resolution moved by the US - and backed by France and the UK - in January.
"Whether last year's application by India or this year's by relevant country our position is consistent. Our criteria is only one, we need solid evidence. If there is solid evidence the application can be approved. If there is no solid evidence there is hardly consensus," Chinese Foreign Ministry spokesman Geng Shuang told reporters on February 17.
China also defends the ambitious CPEC project, saying it is development project and made no difference to its stand that Kashmir issue should be resolve by India and Pakistan.
Officials say the strategic dialogue will cover the whole gamut of bilateral ties. Two sides have been stressing that both sides are holding talks at various levels to iron out differences stressing that dialogue is the best way forward.
In his interview to the same daily, Shaktikanta Das, Secretary Economic Affairs, saidIndia wants more than just investment and eying Chinese market.
"India wants to export more to China. We want to have more market access in China," Das said, urging China to further open up sectors like IT software and agricultural products.
India also has been pressing Beijing to open pharmaceutical sector.
State-run Xinhua news agency later reported that Yang has called for stronger ties between India and China during his meeting with Jaishankar.
China is willing to work with India to implement the consensus reached by the two countries' leaders, maintain high-level exchanges and enhance strategic communication and practical cooperation, a press release quoted Yang as saying.
Jaishankar said India attaches great importance to its relationship with China and will strengthen dialogue and cooperation with China to further the bilateral ties, Xinhua said.