BEIJING, May 30: China and India signed an agreement on Tuesday to expand defence ties, the Chinese foreign ministry said, in a deal that is expected to see the neighbours conduct more military training exercises. The memorandum of understanding was signed during a visit by Indian Defence Minister Pranab Mukherjee to Beijing, foreign ministry spokesman Liu Jianchao told reporters.

“Military exchanges will be an important part of bilateral ties,” Mr Liu said.

“Reinforcement of mutual trust and exchanges will be beneficial for the development of all-round cooperation partnership in the two countries.”

The Indian defence ministry said before Mr Mukherjee’s trip, which began on Sunday, that the agreement would institutionalise training, exercises and other contacts between the armed forces of the two countries.

The agreement would aim to develop a ‘strategic and cooperative partnership for peace and prosperity between India and China’, and enhance trust between their two militaries, the ministry said.

The China Daily reported on Monday that the agreement could become an instrument for a regular and sustained dialogue between Beijing and New Delhi on defence issues.

Mr Mukherjee held meetings with his Chinese counterpart Cao Gangchuan and Foreign Minister Li Zhaoxing on Monday, then met Premier Wen Jiabao on Tuesday.

During his five-day trip, Mr Mukherjee will also visit military bases in Beijing and Shanghai as well as in Lanzhou, the capital of north-western China’s Gansu province.

China-India relations have improved in recent years as both countries have made efforts to complement instead of compete with each other’s growth.

However, the two still have not resolved a decades-old border dispute — the result of a brief but bitter conflict in 1962. —AFP