President Hu Jintao met with Indian Prime Minister Manmohan Singh on Thursday, as the leaders pledged to further ties between Asia's two biggest countries.
The meeting between Hu and Singh took place at the conclusion of the BRICS summit in New Delhi.
The two leaders were expected to declare 2012 as the year of India-China friendship and unveil initiatives to boost cultural exchanges and overall contacts.
Details of the talks between the two leaders were not available by press time.
Border issues have formed part of their discussions, Luo Zhaohui, director of the Department of Asian Affairs of the Ministry of Foreign Affairs, said at a news briefing on Thursday afternoon.
"The Chinese side appreciates the effective and concrete measures taken by the government of India in overcoming the disruptions and the disturbances and in ensuring the safe and smooth holding of the (BRICS) summit," Luo told journalists.
Luo stressed that India and China were enjoying "very sound momentum" in their bilateral ties that is marked by frequent political contacts at the highest levels and cooperation in international issues.
He said meetings between the two governments had been made easier, and peace and tranquility had been maintained in the regions where they both exercise control. "I'd say that's a great success," Luo said.
Earlier, India's media said the country had been asking China to allow its information technology and pharmaceutical firms access to the Chinese market.
China is India's largest trading partner, while India is China's fourth-largest. Both countries are expecting slower economic growth this year.
Cooperation through the BRICS platform, particularly in the business sector, is a way to address existing frictions among the member nations, said Li Zhongmin, a researcher with the Chinese Academy of Social Sciences.
Fu Xiaoqiang, an expert on South Asian studies at the China Institutes of Contemporary International Relations, said China and India should cooperate more under a multilateral framework like BRICS.
"This will enhance the economic and business relationship by increasing communication and mutual understanding," he said, adding that greater cooperation will help both respond to international affairs more positively.
"It will enormously increase the biggest developing countries' common interests and international status," he added.