After weeks of rising tensions between India and China, the first signs of a thaw. Prime Minister Manmohan Singh met his Chinese counterpart Wen Jiabao on the sidelines of the ASEAN summit in Thailand but sources say both leaders stayed away from the source of the war of words -- the Dalai Lama's forthcoming visit to Tawang.

The much-hyped meeting between Prime Minister Manmohan Singh and China's Premier Wen Jiabao lasted for close to an hour.

"Would like to offer my sincerest felicitations on the occasion of the founding of the Peoples' Republic of China. People of this great nation have made universal achievements and we share the extent of your accomplishment," Manmohan Singh said after the meeting.

Before this meet, bilateral relations had hit a new low with Beijing criticising the Prime Minister's visit to Arunachal Pradesh earlier this month something that India strongly protested.

Meanwhile, New Delhi expressed concerns over Chinese investments in Pakistan-occupied Kashmir and the decision to issue visas to people from Jammu and Kashmir on loose sheets.

Beijing has also expressed its concerns over the Dalai Lama's visit to Arunachal Pradesh as India maintains its stand that he is a religious leader and free to travel anywhere in India.

"PM underscored the importance for both sides to build better understanding and trust at the political level so that our relations remain robust and strong," said N Ravi, Secretary (East)

Sources in the government say China's aggressive posturing over the past few weeks has taken India by surprise. But this bilateral meeting on the sidelines of the ASEAN summit in Thailand wasn't seen as the right forum by either side for addressing their concerns. In fact it was the perfect opportunity to tone down the recent flare up.