India and China Monday discussed ways to maintain peace and tranquility along the Line of Actual Control (LAC) as well as the recent incidents of incursions.
The two sides discussed issues of mutual interest including ways to reduce trade deficit during the 5th round of India-China Strategic Dialogue, a ministry of external affairs release said.
"The discussions covered bilateral, regional and global issues of mutual interest," it said.
The Indian side was led by Foreign Secretary Sujatha Singh and the Chinese side by Vice Foreign Minister Liu Zhenmin.
The two sides discussed ways to enhance understanding on using trans-border river waters, expanding bilateral trade and investment and ways of maintaining peace and tranquility along the LAC.
There have been Chinese incursions in Ladakh sector including the stand off in April after Chinese troops pitched tents but pulled back after 21 days following flag meetings and talks at official level.
The two sides also took stock of developments in bilateral ties since the visit of Chinese Premier Li Keqiang to India and discussed ways to boost cultural cooperation, people-to-people exchanges and expansion of scientific and technological cooperation.
They also prepared the ground for a possible visit of Prime Minister Manmohan Singh to China later this year. The two sides also talked about the potential and prospect for Bangladesh-China-India-Myanmar (BCIM) cooperation.
India and China also discussed future cooperation in the BRICS framework and ways of ensuring an open, inclusive and transparent architecture in the Asia-Pacific region.
The two sides also discussed the outlook for Afghanistan in 2014 and beyond.
Later, Liu called on External Affairs Minister Salman Khurshid.
It was also decided that the 6th India-China Strategic Dialogue will be held at Beijing at a mutually convenient time, the release said.