"In my opinion border cannot be discussed with China in meaningful way unless you have a political understanding with it. That is the nature of China," Swamy, who is here to participate in the World Peace Conference organised by China's Tsinghua University, told PTI here.
"They had a political understanding with Russia, they settled what was considered as irreconcilable," he said.
"Border is not a problem if you have a political understanding with China regarding our standing in the dispute between the two," he said.
Swamy said India remained neutral during China's dispute with Russia.
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India should do the same in the China-US rivalry, he said replying to a question about a perception that border issue can be settled as both countries have strong political leaderships.
Chinese President Xi Jinping is regarded as a strong leader in recent times, while Prime Minister Narendra Modi heads a strong government with a majority in Parliament.
"For China, non-aligned position is acceptable. Question is whether it is acceptable to Indian electorate or not. Here is where the strong leader has to make a decision," he said referring to the choices before Modi.
On the Aksai Chin area, which China occupied during the 1962 war, India could continue negotiating, he said.
In order to stay neutral, India should start looking to West Asia instead of East Asia where China is locked in disputes with Japan and some of the ASEAN countries in East and South China seas.
"That is why I am suggesting start looking west, disentangle from east. India is not in a position to defend the countries in the east," he said.
"We can also make pious statements," he said.
Both US and China are important to India and Swamy said Indian neutrality is acceptable to China.