Xi, Modi Hold Bilateral Talks in China, Agree to Improve Ties

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President Xi has accepted Prime Minister Modi's invitation for an informal summit in India in 2019, Gokhale said, adding that the dates and other formalities will be worked out later through diplomatic channels.

It is Modi's second visit to China in little over five weeks.

China opens Saturday a two-day Shanghai Cooperation Organisation summit attended by Pakistan and India after the two countries became members of the regional security bloc led by China and Russian Federation.

Gokhale said the meeting had a "very positive forward looking momentum" which was underpinned by spirit of the Wuhan summit.

SCO members include China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

Both sides have said the Wuhan summit helped put the troubled relationship back on an even keel.

"There were some discussion on trade and investment related issues".

In his remarks, Xi recalled the meeting with Modi in Wuhan, how well it had been received, and said a positive atmosphere was taking shape to support China-India relations.

Addressing a press briefing here, Foreign Secretary Vijay Gokhale said that President Xi suggested to Prime Minister Modi that India and China should set up a new bilateral trade target of $100 billion by 2020.

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The two met on the sidelines of the Shanghai Cooperation Organization (SCO) Council of Heads of State Summit in Qingdoa, China.

They agreed on the importance of maintaining peace and tranquillity along the border and continuing strategic communications on the issue. The two leaders also agreed to continue close coordination and cooperation on all issues of mutual interest.

"On the Indian side, it will be headed by the external affairs minister (Sushma Swaraj) while on Chinese side, it will be headed by state councillor and foreign minister Wang Yi".

In this context, Xi also referred to growing popularity of Indian films in China and particularly mentioned about films Dangal and Bahubali.

China's Belt and Road Initiative was also strongly opposed by India as part of it goes through Pakistan-occupied Kashmir. It also enables China to provide data if the water level exceeds a mutually agreed level during the non-flood season.

"The Chinese side also said that it will encourage our pharmaceutical companies to register for high quality Indian pharma products in the Chinese market".

President Xi said their Wuhan meeting had been well received by both countries and the worldwide community, and a positive atmosphere is taking shape to pay close attention to and support the development of China-India relations.

"So, we have to begin the process of identifying it (the project)", he added.

Modi arrived in Qingdao on a two-day visit to attend the annual SCO summit. "Tomorrow, we will hold the first summit of the SCO after its expansion and draw up a blueprint for its future growth", Xi said.

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