Prime Minister Manmohan Singh and his Chinese counterpart Wen Jiabao met here on Friday, marking the first top level contact between the two countries after defence exchanges were suspended in July following a row over stapled visas to Kashmiris.
The controversial issue of stapled visas along with economic aspects of the relationship are expected to figure in the meeting. Ahead of the meeting taking place on the sidelines of Asean-India and East Asia Summit, the Indian government sources expressed hope that it would be good and "substantive."
China started the practice of issuing the stapled visas to Kashmiris about two years back and the issue triggered a major row in July 2010 when Beijing wanted to give such a visa to India's Northern Area Commander Lt. Gen. B.S. Jaswal.
India responded by suspending high-level defence exchanges for which Lt. Gen. Jaswal was travelling to Beijing and has repeatedly made it clear that these will remain on "pause" till China reverts to its earlier position on Jammu and Kashmir.
China has, however, maintained that it will not change its stand. Sources said economic aspects of the relationship will come up during the talks amid India's concerns over trade imbalance in favour of China.
Trade between the two fast-growing economies has been increasing and is targeted to be $60 billion. However, it is in favour of China to the tune of about $15 billion, particularly because of lack of adequate access to India's pharmaceuticals and services in China.
India has been pressing China to give more free access and has been assured that it would be considered, sources said.