Border dispute with India remain a major challenge: China

China has said the vexed border dispute with India and some "emerging new issues" pose a "major challenge" to the development of bilateral ties.

"As the two neighbouring countries, China and India have historical issues such as the border dispute and also some emerging new issues with the development of the relations between the two countries. How to deal with these issues is a major challenge for the relationship between the two countries," Chinese Assistant Minister for Foreign Affairs Li Huilai said.

"The two sides have agreed to strengthen communication and dialogue, and to seek a fair, reasonable and mutually acceptable solution through friendly consultations, and to manage and control these issues so that the overall development of the relationship between the two countries is not affected," he told PTI.

The Minister, however, did not specify what are the "emerging new issues" faced by the two countries.

Finance Minister Arun Jaitley, who was on a five-day visit to China last week, had said on Friday that the differences between India and China on the boundary issue and other matters may have "some marginal effect" on bilateral trade but businesses between the two sides have been expanding.

The two countries held talks in April this year to resolve the vexed border dispute. While China claims the border dispute is confined to 2,000 kilometres, mainly Arunachal Pradesh in the eastern sector which it claims as part of southern Tibet, India asserts the dispute covered the whole of the Line of Actual Control (LAC) including the Aksai Chin occupied by China during the 1962 war.

The Chinese Assistant Minister also said that the main task that lies ahead for both China and India is to implement the consensus between leaders of both countries and strengthen the good momentum of the development in their ties.

"Over the past years, China and India have kept their relationship developing in a sound and steady manner. The leaders of the two countries have successfully exchanged visits and met repeatedly, reaching an important consensus on deepening the strategic partnership between China and India and building a closer partnership for development," said Li.