Beijing, Nov 28 (IANS): There is "great room" for China and India to increase mutual trust, a state-run Chinese daily said Wednesday, observing that a country will not suffer "unnecessary strategic anxiety when dealing with a major power if it is confident about its own development and national strength".

China and India held the second round of strategic economic talks in New Delhi Nov 26.

The People's Daily said that in the "Year of China-India Friendship and Cooperation", the important meeting can help promote bilateral cooperation and lift strategic partnership to a new level.

"Mutual trust is a precondition for strategic cooperation. In recent years, the two countries have steadily improved the mechanism of dialogue and cooperation, and expanded their cooperation scopes. However, they still have great potential for cooperation," said the daily.

It said there is great room for China and India to increase mutual trust, which is unachievable without self-confidence.

"A country will not suffer unnecessary strategic anxiety when dealing with a major power if it is confident about its own development and national strength."

It noted that China and India are close neighbours, and both are populous developing countries.

"Their rise in Asia has become the most important geostrategic event in the 21st century. Competition between the two major Asian powers which are at the same development stage and have similar goals is positive rather than vicious," said the daily.

Stressing that mutual trust requires pragmatic cooperation, the daily suggested that the two countries should continue to promote bilateral trade and investment, enhance pragmatic and win-win cooperation, and work tougher to cope with common challenges.

"This is crucial to increasing the vibrancy of China-India relations, improving the well-being of their people, and building up strategic mutual trust."