Stating that China's armed forces' modernisation need to be "monitored carefully" for implications on India's defence and security, the Defence Ministry, however, struck a conciliatory note, saying it enjoyed a strategic and cooperative partnership with China, which had further progressed during high-level visits in 2008-09.

It observed with satisfaction Beijing's stated policy in its White Paper "never to seek hegemony or engage in military expansion in the future, no matter how developed it became." The report said the two neighbours were engaged in negotiations on the 4,500-km boundary dispute and have agreed to maintain peace through mutually agreed confidence building measures, pending final settlement.