Chinese President Xi Jinping said the world needs the common development of China and India, in a meeting with Indian Prime Minister Manmohan Singh here on Wednesday.
Xi said Singh is an old friend of the Chinese people and he has made important contributions to the development of China-India relations.
He praised Singh as a senior politician who started economic reform in the 1990s and helped India to make remarkable progress.
The president recalled his last meeting with Singh in Durban, South Africa, during which they reached an important consensus on bilateral relations.
China and India have a long history of ancient civilizations and are the two largest developing countries in the world, said Xi, noting that the two account for more than one third of the world's people.
The China-India relations have gone far beyond the bilateral level and are taking on a global and strategic significance, said Xi.
He agreed with Singh that there is enough space in the world for India and China to achieve common development and said he believes the world needs the common development of the two nations.
As one of the most important bilateral relationships in the world, China-India ties do not only benefit the two peoples, but have a profound impact on the development of Asia and the world, said the president.
Currently, bilateral relations have maintained comprehensive and rapid development and have entered an ascending period, he said, adding that China had always viewed India as a strategic partner and rejoices in India's achievements.
He said China hopes to work with India on common development featuring peace and cooperation, increasing strategic mutual trust along with the international trend.
The two sides should strengthen cooperation on international and regional issues as well as within the framework of multilateral mechanisms, so as to safeguard common interests and push for the establishment of international relations featuring equality, mutual trust, inclusiveness, mutual learning, cooperation and win-win, he said.
The two sides should deepen pragmatic cooperation and push forward bilateral relations along with the demands of domestic development, he said.
The top priority of both countries is the economy and improving people's lives, he said, suggesting the two sides deepen cooperation in infrastructure construction, information technology, telecommunication, investment and industrial parks.
China's western development campaign and India's "Look East" policy should be combined to achieve mutual benefit and win-win results, he added.
The president called on the two sides to properly manage and control their differences and push forward the bilateral ties along with the rejuvenation course of both countries.
Both China and India need a good international and surrounding environment, he said, calling on the two sides to accommodate each other's concerns, properly deal with issues concerning borders and trans-border rivers, and enhance cooperation on defense as well as combating terrorism.
Xi also suggested the two sides expand communication and dialogue, along with the revitalization of oriental civilization.
Xi asked Singh to extend his greetings to Indian President Pranab Mukherjee and President of the Indian National Congress Party Sonia Gandhi.
Singh echoed Xi saying he will convey his greetings to Mukherjee and Gandhi. He said the relationship with China is a "high priority" in India's foreign policy.
Singh said India and China share a deep traditional friendship and broad common interests, and have huge potential for cooperation.
Their enhanced cooperation has great significance to both countries, Asia and the world, he said.
India is ready to work with China to further strengthen strategic communication and people-to-people exchanges, enhance defense cooperation, properly handle differences through friendly negotiations, and reinforce coordination in international and regional affairs, so as to jointly cope with challenges and advance bilateral ties, said Singh.
He congratulated China for its great achievements, noting that the China Dream and the India Dream are closely related.
India and China will be an unstoppable force in promoting world peace and development by working together, said the prime minister.
Before the meeting, Chinese Premier Li Keqiang held talks with Singh on Wednesday morning. The two prime ministers also witnessed the signing of nine documents after the talks.
Singh arrived in Beijing on Tuesday night for a three-day official visit to China.