``The prerequisite for the growth of Sino-Indian relations is that both countries refrain from regarding each other as a threat, with the five principles of peaceful coexistence initiated by China and India serving as the foundation for ties,'' Chinese foreign ministry spokesperson Zhang Qiyue told reporters summing up the two-day ice-breaking visit of Singh.

Singh, who earlier in the day had a detailed discussion with Chinese premier Zhu Rongji on regional and international issues, described his visit as ``rewarding'' and said the talks were fruitful and consensus has been reached on a number of matters concerning bilateral ties.

``Coming as it is after a lapse of time, it is a very rewarding visit,'' theexternal affairs minister said.

``We are happy to see that the relations have entered the process of improvement and development and hope that the two sides can strengthen the exchanges and visits in order to further eliminate doubts,'' Zhu told Singh.

``China and India do not regard each other as threats and both seek good neighbourly relations,'' the central broadcasting station quoted Zhu as saying.

Singh told Indian reporters that he had a ``comprehensive discussion on global economic issues'' both from Chinese and Indian perspective in the face of ``dollar imperialism and hegemony.''

Though China was silent on the decision reached by Singh and his Chinese counterpart Tang Jiaxuan on setting up a security dialogue mechanism, the external affairs minister said ``the security dialogue proposal that has been put forward, accepted and is now going to fructify.''

``The dates will be finalised, dimensions, shape, etc, will be decided in consultations with the two foreign ministries,'' Singhsaid.

The Chinese foreign ministry spokesperson, however, said she had got no information on the proposed security dialogue mechanism.

Zhang said ``India is an important neighbour and developing good relations and friendly cooperation is one of China's basic national policies.''

``Stable, normal and friendly Sino-Indian relations not only serve the fundamental interest of both peoples, but are also conducive to promoting peace, stability and development in Asia and the world at large,'' Zhang said.

Commenting on his visit to the communist country, the first by an Indian external affairs minister in eight years, Singh said, ``This has been an opportunity to address bilateral issues. Both sides dealt with larger issues concerning bilateral relations.''