China said it's ready to end its five-decade long border dispute with India that saw both countries suffer over 10,000 casualties during a war fought in 1962.

Chinese Foreign Minister Wang Yi said his country is ready for a final settlement of its border disputes with India. He also said China is prepared to invest more in India if its tough trade rules are reduced.

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"Through years of negotiation, we have come to an agreement on the basics of a boundary agreement, and we are prepared to reach a final settlement," Wang said during his two-day visit to India that saw him in talks with new Indian Prime Minister Narendra Modi.

The Sino-Indian War from October 20 to November 21, 1962 in India's North-East Frontier Agency was sparked by Chinese surprise attacks at disputed border areas. The Chinese wrested control of Aksai Chin from the Indians and continue to hold this territory until today. India claims Aksai Chin is part of its state of Jammu and Kashmir.

India accuses China of occupying 38,000 square kilometers of territory in Jammu and Kashmir. China is also claiming 90,000 square kilometers of land in the Indian state of Arunachal Pradesh.

Tensions remain high at the disputed borders. Last year, India said Chinese troops had crossed into Indian-held territory in Ladakh. This led to the most serious dispute between both foes in a quarter of a century.

During his election campaign, Modi promised to take a harder line in protecting India's borders against China. Modi warned China to drop its "territorial mindset" last February and said India's weakness had encouraged China's army to enter Indian territory last year.

Economists said India and China want to prevent their territorial dispute from affecting economic ties. China is India's largest trading partner with a combined trade of $49.5 billion from April to December 2013.

"China-India cooperation is like a massive buried treasure waiting to be discovered," Wang said. "The potential is massive."

Political analysts, however, said China's main motivation in seeking peace with India is to prevent India from retaking the territory is seized from India while it grapples with Japan, Vietnam and the Philippines in an intractable territorial dispute triggered by China's illegal claim to own 90% of the South China Sea.

TagsMilitary, threat, Sino-Indian war