Sunday, January 15 2006 20:19 Hrs (IST) - World Time -

Beijing: Two high-level visits from India in succession to China this week has enhanced bilateral ties and mutual trust in 2006, which is being marked as the 'India-China Friendship Year', diplomatic sources and analysts said here.

Foreign Secretary Shyam Saran toured the country from January nine to 11 and held the second round of India-China Strategic Dialogue with Chinese Vice Foreign Minister Wu Dawei during which the two sides had intensive discussions of bilateral, regional, international issues and some important security issues.

Petroleum and Natural Gas minister Mani Shankar Aiyar, who undertook a high-profile visit to China from January 11 to 13 succeeded in forging a strategic and long-term India-China cooperation in the hydrocarbon sector, vital for the energy security of both Asian giants, who are net importers of oil.

The Strategic Dialogue between Saran and Wu was the first after India and China agreed to establish a 'Strategic and Cooperative Partnership' during the visit of the Chinese Premier Wen Jiabao to India in April last year.

"The basic thrust of our approach is on managing the emergence of both India and China in a more cooperative framework," Saran said adding that an important theme was to determine the content of the emerging strategic partnership.

He said both sides expressed satisfaction at the positive trends that have been witnessed in the India-China relations in the recent past and discussed how to maintain and in fact accelerate the momentum of India-China relationship and also add more substance to the relationship.

"We also exchanged views on how to address outstanding issues, including the boundary question in a proactive manner," Saran said, even as both sides decided to hold the seventh round of the Special Representative-level boundary talks in Delhi in late February.

During his visit, Aiyar impressed upon the Chairman of the National Development Reform Commission, Ma Kai that 'aggressive' bidding by either India or China would harm the interests of both parties and that it would be mutually beneficial if New Delhi and Beijing could have prior consultation while planning to acquire foreign assets.

"Unbridled rivalry between India and Chinese companies for the acquisition of overseas hydrocarbon assets is to the advantage only of the seller of the asset and to the disadvantage of both our countries, irrespective of who eventually wins the bid," he told Ma.

Aiyar said his visit to Beijing was in search of mutual cooperation to the mutual benefit of India and China, adding, 'the outcome has been gratifying' as there was now greater understanding in India and China in a strategic and cooperative quest for energy security.

"For our part, we look upon China not as a strategic competitor but as a strategic partner," the minister said.

During his parleys Saran also discussed the boundary question, a vexed issue that has prevented bilateral ties from developing at a faster pace.

"We are looking now at working together in the next round to try and evolve a framework for the boundary settlement. Both sides are committed to seek an early settlement on the basis of the 'Political Parameters and Guiding Principles' which were adopted in April last year," he said.