Beijing: Progress has been made at the latest round of India-China boundary talks and the level of mutual trust between the two Asian giants has increased to give a solid foundation for bilateral ties, a senior Chinese official said today (Jan 16, 2004).

"China-India relations are developing very well. Especially we have improved our mutual trust, which is important for bilateral relations," Chinese Vice Foreign Minister Wang Yi said.

"Without mutual trust we cannot take our bilateral relations forward. This is the most important development," said Wang, who was the chief guest at the Republic Day reception hosted by the Indian Ambassador to China, Nalin Surie.

The Indian Embassy hosted the reception 10 days in advance of the Republic Day, as Chinese people will be on a weeklong holiday to celebrate the lunar New Year, which falls on January 22.

Secondly, Wang noted that the bilateral economic cooperation between China and India is developing rapidly. According to official estimates, India-China trade in 2003 was expected to hit an all-time high of nearly $ seven billion.