Chinese Foreign Ministry spokesman Qin Gang said "the two countries have maintained high-level contacts and cooperation and exchanges in various fields and made significant progress".

He was responding to a question about Foreign Secretary Nirupama Rao's comments in Washington that the relationship between India and China has improved significantly in the last two decades.

"Both the countries are committed to bilateral, good neighbourly and friendly relations on issues facing 21 century for common prosperity. China is ready to work with Indian side to enhance our relationship as good partners and good neighbours," he said.

On the border issue, he said: "Of course it is inevitable that issues of border disputes remain between us, but the important consensus reached by leaders that is to commit to the political parameters signed and properly handling will ensure peace and stability".

He said pending the resolution of the issues the two countries should ensure the stability of the border area.

"We believe with the development of China-India relations, border issue will be gradually resolved," he said.