China said Thursday that the only way to defuse tension in the wake of Mumbai incident was holding dialogue between India and Pakistan. Responding to questions on terrorists attack in Indian economic hub, Mumbai last week, Chinese Foreign Office spokesman Liu Jianchao here said that the Indian government was investigating the Mumbai attack and "we hope they would find out the truth". He further said, "We take note of the Indians leaders who had made some remarks on this incident. "From our point of view China as a friendly neighbor to both India and Pakistan" wants to see improvement of bilateral relations between the two countries.