Beijing (PTI): Seeking to build on the positive momentum in their relationship, India and China on Friday vowed to strengthen their strategic ties and keep their border peaceful while exploring ways to address the "difficult" bilateral issues.

India also said it was ready to join hands with China to evolve a new flexible "security architecture" that will be "open" and "inclusive" to ensure peace and stability in Asia and beyond.

In an address to the prestigious Peking University, Mukherjee said the two countries need to resolve the differences on boundary issue through negotiations in a "constructive and forward looking manner".

He said differences would not be allowed to become obstacles to the broadening and deepening of the relationship.

"We will have to be patient and realistic", Mukherjee said in his speech while emphasising that both countries were mature enough to realise and address the "difficult issues" in the bilateral relationship.

The boundary between the two countries was peaceful and "we are determined to keep it so", Mukherjee said. Both countries had evolved mechanisms and gained experience to maintain peace and tranquillity in the border areas, he said.

After holding wide-ranging talks yesterday, Mukherjee and his Chinese counterpart Yang Jiechi met informally for an hour over dinner at the residence of Indian Ambassador Nirupama Rao.

"I think the relationship is heading in the right direction", said Yang, who described as "excellent" his talks with Mukherjee.

Yang said, "I myself had excellent talks with the Foreign Minister Mukherjee and we have covered much ground not only on bilateral relations but also the international situation as well".

Mukherjee, whose visit is the first to China after he became the External Affairs Minister and the first high-level bilateral contact since the visit of Prime Minister Manmohan Singh in January, said, "I share what my counterpart just told you that it was a good visit. I am satisfied. I had a wide ranging of discussions on bilateral relations".

With food and energy crises looming large in the world, both sides also covered the two aspects while discussing international issues.

Mukherjee said, "We decided to work together not only to improve our bilateral relations but also to address these problems faced by the international community with a common collective approach as far as possible".

"I think the prospect is a good one", Yang said, when asked about the early possibility of meeting of Special Representatives of the two countries on the boundary issue on which they have held 11 rounds of talks so far.

Mukherjee met Chinese Vice-President Xi Jinping, during which, according to the state media, both sides "vowed to strengthen their strategic ties".

Xi, who is considered a prominent figure in the Chinese political hierarchy as he is tipped to succeed President Hu Jintao in 2012 after he completes his second term of office, said China would work with India "to promote the bilateral partnership of cooperation and contribute to long-lasting peace and prosperity in the world", according to state-run Xinhua news agency.

"China is satisfied with the development of relations with India. The two countries had cooperated in all areas, deepened mutual understanding and trust, and maintained close coordination and cooperation in international and regional affairs", Xi was quoted as having told Mukherjee.

At the formal talks, India had yesterday raised with China the issue of Sikkim after Beijing sought to inject a fresh element by claiming "finger area" in the state.

The Indian position is that there is "zero dispute" on Sikkim, as it had already been settled.

In a cultural dimension to his visit, Mukherjee presented the Padma Bhushan award to Indologist Ji Xianlin, making him the first Chinese to be conferred with the coveted honour.

The visit was also marked by special and significant gestures - Chinese Foreign Minister hosting a dinner with a special touch at the Forbidden City yesterday and attending the one to which India's Ambassador played host.

On Mukherjee's part, he is paying a visit to Chengdu, the provincial capital of earthquake-shattered Sichuan province in southwest China, tomorrow to receive one batch of Indian relief supplies to the quake victims.

Premier Wen Jiabao who could not meet Mukherjee as he had to rush to the quake-battered areas had expressed his regret through a message conveyed by Yang. Instead, the meeting with the Chinese vice president was arranged.

Mukherjee will fly back to Delhi on Saturday at the end of his four-day visit.