Manmohan Singh met He Yiting, executive vice president of the Central Party School, during his visit at the Central Party School of the powerful Chinese Communist Party.
He said the stability in the relationship with China has created a basic condition for both the nations to exploit the opportunities created by their economic growth and openings.
The Indian prime minister, who got a standing ovation, said China has emerged as India's largest economic partner.
"Naturally, there are also concerns on both sides - whether these are incidences on the border regions, trans-border rivers or trade imbalances," he said.
He said: "Our recent experiences have shown these issues can become hindrances to the full exploitation of opportunities of bilateral and multi-lateral cooperation."
PM Manmohan Singh said China has emerged as India's largest economic partner.
The Prime Minister said he was pleased with the Border Defence Cooperation Agreement (BDCA) that was signed Wednesday and said officials who determine public policy "will do everything to advance our cooperation and promote India-China relations".
He said President Xi Jinping and Premier Li Keqiang had given him confidence of achieving the vision of India and China becoming prosperous nations and mutually compatible.
"Our future should be decided on cooperation and not confrontation. It will not be easy, but we must spare no effort. What is at stake is the future of India and China," Manmohan Singh said.