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After a hard day's diplomacy, it's time for a selfie.

Update | China, India agree ‘proactive’ approach to resolving border dispute

Progress on border and deals worth US$10 billion as Indian PM wraps up day two of China visit

China and India agreed to "proactively" resolve a long-festering border dispute and expand their military ties as Indian Prime Minister Narendra Modi wrapped up talks with Premier Li Keqiang on the second day of his China trip on Friday.

The two nations also signed 24 deals, worth a total of about US$10 billion, vowing to boost cooperation in areas from infrastructure development to climate change and space research.

But in remarks that signalled the simmering tensions between the two Asian giants, Modi urged China to "reconsider" its approach towards India, and the two nations to be more sensitive to each other's interests.

A joint declaration issued after the talks said the two sides agreed that the simultaneous re-emergence of India and China as two major powers in the region and the world offered a "momentous opportunity for realisation of the Asian Century".

"The leaders agreed that the process of the two countries pursuing their respective national development goals and security interest must unfold in a mutually supportive manner with both sides showing mutual respect and sensitivity to each other's concerns, interests and aspirations," the declaration said.

"Those differences should not be allowed to come in the way of continued development of bilateral relations," it said.

The two leaders committed to improve border defence cooperation and hold annual visits and exchanges between the two military headquarters and neighbouring military commands.

"We have the ability to make the global political and economic order move in a more just and balanced direction," Li said after the talks, adding that top leaders of both sides should keep frequent exchanges and focus on issues of strategic interest.

Indian Foreign Secretary Subrahmanyam Jaishankar, who accompanied Modi on the visit, said "there was agreement that we should expand the number of border personnel meeting points".

India's NDTV said these locations could include Track Junction, Pangong Tso Lake, Demchock and Chuma.

Tensions rose between China and India last year over the disputed border, with Beijing laying claim to more than 90,000 sq km ruled by New Delhi in the eastern sector of the Himalayas.

Modi reiterated the importance of securing mutual trust, but called for Beijing to take a strategic and long-term view of Sino-Indian relations.

"I stressed the need for China to reconsider its approach on some of the issues that hold us back from realising the full potential of our partnership," he said.

In a speech at Tsinghua University, Modi said both nations needed to ensure that their relationships with other countries did not become a concern for each other.

"If we are able to deepen mutual trust and confidence, we will also be able to reinforce each other's efforts of connecting Asia with itself and the rest of the world," he said.

Analysts said Modi's comment was somewhat unusual as diplomatic visitors to Beijing normally called for further consolidation of bilateral ties.

"By asking the mainland to reconsider its approach in dealing with India, Modi meant to say there is a need for Beijing to work hard with New Delhi to really find a way to resolve their border disputes if the two sides are to closely cooperate to form the Asian Century," said Fang Tien-sze, a South Asia study expert and a Taiwanese former diplomat in India.

In a lighter touch, Modi and Li watched a demonstration of tai chi and yoga at the Temple of Heaven, where Modi took a selfie with Li. The two sides also agreed to work together to organise events for International Yoga Day on June 21.

Modi will be in Shanghai on Saturday, meeting the Indian community and joining a business forum, before heading to Mongolia and South Korea.

This article appeared in the South China Morning Post print edition as: Modi and Li reach out to 'realise the Asian century'
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