Modi, Xi stroll by lake and have a boat ride in Wuhans

Prime Minister Narendra Modi being received by External Affairs Minister Sushma Swaraj in Delhi on Saturday

China, India hold 1st summit since last year's Bhutan friction

The foreign secretary said the two leaders agreed on prioritising the maintenance of peace along their borders and "decided to issue strategic guidelines to their military to this effect".

Modi and Xi Jinping also discussed ways to achieve balanced and sustainable trade. A diplomatic source here said the mood in the meetings was perfectly encapsulated in the instrumental cover of a popular Bollywood song from the 80s, hon na juda yeh wada raha, by a Chinese orchestra at Xi's dinner for Modi.

"The two leaders, based on correct understanding, outlined a blueprint for future of China-India relations", he said. "They should regard each other as an active factor in the change of world power", Xi said.

Modi and Xi have made a decision to issue "strategic guidance" to their militaries to strengthen communications to build trust and understanding, Foreign Secretary Vijay Gokhale said today, a move aimed at avoiding a Dokalam-like situation in the future. "It will undoubtedly give impetus and new dynamics to China-India relations", Boris Volkhonsky, associate professor of the Institute of Asian and African Studies, Moscow State University, said.

The Chinese side paid attention to details like decorating Saturday's lunch menu with the colours of Indian flag and displaying a peacock on it.

In addition, he said that China did not think it was important whether India accepted China's Belt and Road infrastructure project and China would not force it to. New Delhi has also been alarmed by China's moves to build ties with Indian Ocean nations including India's longtime rival Pakistan.

India, China "backbone" of multi-polar world order: "As the two largest developing countries and emerging-market economies with a population level of more than one billion, China and India are the backbone of the world's multipolarisation and economic globalisation", Jinping was quoted as saying.

The focus on enhancing "strategic communication" indicates both India and China are looking at each other as potential partners. While the two leaders recognised the common threat posed by terrorism, specific issues like China's opposition to Jaish-e-Mohammad chief Masood Azhar being labeled a terrorist by the United Nations - and to India's membership of the Nuclear Suppliers Group - were not brought up. When India applied for permanent membership of the UN Security Council, China's attitude toward it was the most passive of the five current permanent members.

"In that context, the Prime Minister also mentioned the importance of balancing trade and also spoke of the possibility of agricultural export and pharmaceutical exports to China".

He is expected to visit China to take part in the Shanghai Cooperation Organisation (SCO) summit to be held at Qingdao city on June 9-10.

Asked whether the two countries would compete against each other in the neighbourhood, the region and elsewhere, and if there was any agreement not to work against each other's interests, Gokhale was non-committal. Both the leaders reiterated the importance of building an open and pluralist global economic order in which all countries can freely participate to pursue their development.

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