"For those problems left over by history or controversial issues, we should focus on the larger picture, conduct consultation on an equal footing, and handle them properly through mutual understanding and accommodation," Wen said this, without naming any country, in his inaugural speech at the third Asia Cooperation Dialogue (ACD) Foreign Ministers meeting in Qingdao.

China views its boundary dispute with India as a "historical issue" and under the first-ever joint declaration signed last June between New Delhi and Beijing, both Governments have reiterated their readiness to seek a "fair, reasonable and mutually acceptable solution through consultations on an equal footing."

"To some of these issues, the principle of 'shelving differences and going in for joint development' can be applied," he said.

"We should adhere to the five principles of peaceful co-existence and safeguard peace and stability in Asia," Wen said at the meeting attended among others by External Affairs Minister K Natwar Singh and 21 other Foreign Ministers from Asia.

"China will never pursue hegemony," the Chinese Premier Wen said one should respect the reality of Asia's diversity, carry forward the tradition of Asian cooperation, treat each other candidly and as equals, settle disputes through dialogue and seek security through cooperation.

He said China's development cannot be separated from the support and help from all Asian countries, adding Beijing would play "a more active part" in various multilateral processes that are aimed at promoting Asian cooperation.

"We will honour our commitments and fulfill our responsibilities," he said while stressing that his Government will strengthen cooperation with East Asian countries as well as with south Asian, central Asian and west Asian countries.

"China will unswervingly uphold the policy of 'building an amicable, tranquil and prosperous neighbourhood," he said.