New Delhi, Sept. 1 -- India on Sunday emphasised the importance of peace and tranquillity in the border areas for further developing ties with China, as Prime Minister Narendra Modi and President Xi Jinping committed themselves to a mutually acceptable resolution of the boundary issue and to working together to stabilise the global economy. Modi, on his first visit to China in seven years to attend the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, met Xi for the second time since the two sides agreed last October to end a military standoff on the Line of Actual Control (LAC) which began in April-May 2020. The face-off took bilateral ties to their lowest point since the 1962 border war. The two leaders welcomed "positive momentum and steady progress" in bilateral ties since they last met in the Russian city of Kazan last year, and said India and China are "development partners and not rivals, and that their differences should not turn into disputes", the external affairs ministry said in a readout after the meeting that lasted about an hour. Modi underlined the "importance of peace and tranquillity on the border areas for continued development of bilateral relations" and the two leaders expressed satisfaction at the successful disengagement of troops in 2024 and maintenance of peace since then, the readout said. "They expressed commitment to a fair, reasonable, and mutually acceptable resolution of the boundary question proceeding from the political perspective of their overall bilateral relations and the long-term interests of the two peoples," the readout said. Modi said the productive discussions in Kazan last year had given a positive direction to bilateral relations. "After the disengagement at the border, an atmosphere of peace and stability is now in place. Our Special Representatives have also reached an agreement on border management," he said. "We are committed to advancing our relations based on mutual trust, respect and sensitivity," he added. The uncertainty and geo-economic churn caused by the trade and tariff policies of the US administration figured in the discussions. In an obvious reference to these developments, Xi characterised the global situation as "both fluid and chaotic" and said India and China, as important members of the Global South, should strengthen cooperation on major international and regional issues, defend international fairness and justice, uphold multilateralism, and promote a multipolar world. The Indian readout said the two leaders, in the context of economic and trade relations, "recognised the role of their two economies to stabilise world trade". They also underlined the need to "proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce trade deficit", it said. However, Modi made it clear that India and China pursue strategic autonomy and "their relations should not be seen through a third country lens". The leaders called for expanding common ground on bilateral, regional and global issues and challenges such as terrorism and fair trade at multilateral platforms, the readout said. A stable relationship and cooperation between India and China based on mutual respect, mutual interest and mutual sensitivity are necessary for the development of both countries, a multipolar world and a multipolar Asia, the readout said. Xi called for strengthening strategic communication and deepening mutual trust, while accommodating each other's concerns. He also suggested the border issue shouldn't define the overall India-China relationship. "It is the right choice for both countries to be friends who have good neighbourly and amicable ties, partners who enable each other's success, and to have the dragon and the elephant dance together," Xi said. At their previous meeting, Modi and Xi revived several mechanisms to normalise bilateral relations and to address the long-standing border dispute. This was followed by meetings between the defence and foreign ministers of the two sides and the Special Representatives on the border issue - National Security Adviser Ajit Doval and foreign minister Wang Yi - which paved the way for confidence building measures such as resumption of the Kailash Manasarovar Yatra and tourist visas for Chinese nationals. The two leaders acknowledged the need to build on these measures by strengthening people-to-people ties through direct flights and visa facilitation. They also noted important decisions made by the Special Representatives earlier this month, such as an "early harvest" in boundary delimitation, and agreed to further support these efforts, the readout said. Modi invited Xi to the Bric Summit to be hosted by India in 2026. Xi thanked him for the invitation and offered China's support for India's presidency of Brics. Modi also met Cai Qi, member of the standing committee of the Politburo of the Communist Party of China, and discussed bilateral relations. Cai reiterated the Chinese side's desire to expand bilateral exchanges and improve relations. This was Modi's first visit to China since the start of the standoff on the LAC, and it took on additional significance because of the sudden souring of India-US ties over President Donald Trump's decision to double tariffs on Indian goods, including a 25% punitive levy over purchases of Russian oil. Modi will hold a few more bilateral meetings on the margins of the SCO Summit, including one with Russian President Vladimir Putin on Monday. Putin's planned visit to India for an annual summit and the situation in Ukraine are expected to figure in this meeting. Modi's participation with other SCO leaders in an official reception on Sunday evening could bring him face to face with Pakistan Prime Minister Shehbaz Sharif for the first time since hostilities between the two countries in May following India's Operation Sindoor, which targeted terrorist infrastructure in Pakistan. On Monday, Modi will participate in the SCO Summit and Indian officials have said they expect the bloc to strongly condemn cross-border terrorism in keeping with its founding principles. SCO was formed by China, Russia and several Central Asian states in 2001 with the stated aim of countering terrorism, separatism and extremism. While the bloc's charter doesn't allow raising of bilateral issues, India has pushed for condemnation of cross-border terrorism in joint statements and documents adopted by the 10-member bloc....