SANYA, Hainan - Beijing and New Delhi on Wednesday reaffirmed their resolve to maintain peace and stability in border areas until the dispute is finally settled, seeking to establish a consultation and coordination mechanism on border affairs.

During their meeting on the sidelines of the Third BRICS Summit, President Hu Jintao and visiting Indian Prime Minister Manmohan Singh said the two emerging economies need to properly deal with their differences and continue the boundary talks to find solutions that are acceptable to both sides.

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Hu said the Sino-Indian relationship has gone beyond bilateral dimensions and taken on a global and strategic significance.

He urged the two important Asian neighbors to use the "Year of China-India Exchange" -- formally launched on Wednesday -- to expand cooperation and push bilateral ties to a new level.

The two leaders also discussed strengthening economic ties and agreed to enhance cooperation in the fields of infrastructure construction, information technology and investment. The first round of Sino-Indian strategic economic dialogue for a larger trade relationship is expected to take place in a few months.

Recalling their previous meetings last year at the Second BRICS Summit in Brasilia and the G20 summit in Seoul, Singh said that the "exchange of views is very satisfying to our concerns".

Singh said he is in Sanya to "reaffirm that strategic and cooperative partnership that we have with China is something which is very dear to us. We are very keen in intensifying (the partnership) in every possible way."

Citing Sino-Indian cooperation on major international issues, he said: "It is my fondest hope that we expand our areas of cooperation between our two countries."

The two nations have been consulting each other recently on various regional and international issues such as Libya crisis and climate change.

Analysts say the expansion of mutual trust and understanding at the multilateral level is expected to have a positive impact on Sino-Indian ties.

Swaran Singh, a professor at New Delhi-based Jawaharlal Nehru University, said that the multilateral forum is a relatively neutral place where China and India can discuss common interests in addressing regional and global challenges.

"The world has enough for both of us" is the consensus of Chinese and Indian leaders, he said, adding that academic commentaries sometimes use this argument to explain why Asia's two fastest growing economies will not clash as they pursue peaceful development.

"Their growth has begun to influence their bilateral relations," he added.