Beijing, China: January 14, 2008 -  China and India announced here today that they would be holding their joint military exercises this year. Both countries appreciated the "progress" in negotiations on the boundary issue.

Prime Minister Manmohan Singh and Chinese counterpart Wen Jiabao have agreed to enhance economic engagement by stepping up bilateral trade target speedily from USD 40 billion to USD 60 billion by 2010.

Building on the goodwill generated by the landmark handshake between the world's two powerful armies last month in Kumming in China, the two leaders decided to have a second military exercise in India, as per PTI.

"We have agreed to continue to deepening mutual understanding and trust between our armed forces and welcome the successful first exercise in Kumming," Singh said.

On the outstanding boundary question, the two sides had "successful" discussions, the Prime Minister said at a press conference after the talks at the ornate Great Hall of the People.

"We welcome the progress made by Special Representatives for seeking a framework for settlement of the boundary question that is fair, reasonable and mutually acceptable and based on guiding principles and political parameters signed in April 2005."

While the SRs will continue the discussions, both sides reiterated their mutual commitment to maintaining peace and tranquility on the border.

The two sides expressed readiness to forge closer strategic and economic partnership by taking advantage of important opportunities for growth and development of the two Asian giants.

India attaches "highest priority" to developing cooperative and mutual partnership with China, Singh said.

The Prime Minister, who was given a ceremonial welcome by the tri-service of the People's Liberation Army, said frequent and regular meetings at the summit level contributed greatly to development of India-China relations.