"It (PM's visit to China) is a step in right direction to create environment for investment in the region," Mufti told reporters during an informal interaction at his residence here today.
Mufti was replying to question about whether the PM's visit would bear fruit in terms of Sino-Indian relations in wake of the border disputes including in J&K and other issues.
"Prime Minister's focus has been to bring India closer to its neighbours. When he during the swearing in ceremony invited the heads of the SAARC countries, it was never a convention but a step towards it," he said.
The Chief Minister further said the trade value between India and China would be more than with America.
"There is compatibility between the two. That is a step in right direction. China has a policy, we have a policy and Pakistan too has a policy," he added.