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Last Updated: Tuesday, 15 January 2008, 11:54 GMT
PM visit boosts India-China ties
Indian Prime Minister Manmohan Singh (L) shakes hands with Chinese President Hu Jintao in the Great Hall of the People, Beijing (15/01/2008)
Mr Hu said Mr Singh's visit had been "short but productive"
Indian Prime Minister Manmohan Singh has ended his three-day visit to China having secured agreements to strengthen economic and military links.

Mr Singh met Chinese President Hu Jintao on the final day of his official visit to the capital, Beijing.

On Monday, Mr Singh and Chinese Premier Wen Jiabao pledged to expand trade and hold more joint military exercises.

But India pressed China to address an increasing trading imbalance.

Mr Singh's trip to Beijing was the first by an Indian prime minister in five years.

Mr Hu congratulated him on his "short but productive" visit.

Mr Singh replied that the two countries "must do everything in their power" to strengthen their "multifaceted co-operation".

'Win-win progress'

On Monday, Mr Singh and Chinese Premier Wen Jiabao pledged to expand trade and hold more joint military exercises.

They are two of the world's fastest growing economies and trade between them has risen rapidly in recent years, reaching over $30bn in 2007.

We should respect each other, understand each other, trust each other and work with each other for mutual benefit and win-win progress
Chinese Premier Wen Jiabao

On Monday, Mr Wen and Mr Singh signed a broad agreement to expand this bilateral trade to $60bn (30bn) by 2010.

The Indian leader described the agreement as "an important milestone in the evolution of our relations".

"It reflects not only our common perceptions but also our desire to purposefully co-operate in the future," he said.

India voiced concern that the bilateral trade is skewed in China's favour, but Mr Wen said he believed that the countries were "co-operative partners instead of competitive opponents".

"We should respect each other, understand each other, trust each other and work with each other for mutual benefit and win-win progress," he said.

"We should not ask who will outdo whom."

Chinese and Indian army commanders shake hands at the war games in December
Indian and Chinese militaries will stage further joint drills

The two leaders also agreed to stage a second round of joint military exercises, following the first ever such manoeuvres in December 2007.

Additionally, they pledged to renew efforts to resolve a border dispute dating back to a short but bloody war in 1962 over Himalayan territory.

"Both sides reiterated their mutual commitment to maintaining peace and tranquillity in the border areas," Mr Singh said.

Analysts say many differences remain between the two nations, and the summit was an effort to preserve relations at their current level rather than attempting any significant improvement.

But Indian Foreign Secretary Shivshankar Menon told Reuters news agency he felt positive about the talks.

"It's not that we've removed all the problems, but I think we know how to deal with them. We are managing them," he said.

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