BEIJING- China and India proposed measures on Friday to resolve a long-festering border dispute, as Beijing sought to clear obstacles to a relationship that it said could change the international political order.

Chinese Premier Li Keqiang met Indian Prime Minister Narendra Modi in Beijing, the second leg of his three-day trip to China during which both sides have pledged to boost cooperation between the two Asian giants.

"We have the ability to make the global political and economic order move in a more just and balanced direction," Li said.

The two countries agreed to start annual visits between their militaries, expand exchanges between the border commanders and start using a military hotline that has been discussed in recent years to defuse flare-ups on the border, according to a joint statement.

Tensions rose between China and India last year over the disputed border. China lays claim to more than 90,000 sq km (35,000 sq miles) ruled by New Delhi in the eastern sector of the Himalayas. India says China occupies 38,000 square km (14,600 sq miles) of its territory on the Aksai Chin plateau in the west. India is also suspicious of China's support for India's arch-rival, Pakistan.

"We both believe in maintaining the momentum of talks between special representatives on the border issue in seeking a plan for resolution that is fair and reasonable," Li told reporters.