Notwithstanding their differences on the boundary question, India and China today vowed to deepen their multi-faceted ties for a "lasting friendship" as External Affairs Minister S M Krishna met his counterpart Yang Jiechi in Phuket.

Obama met Chinese Foreign Minister Yang Jiechi following sharp exchanges between Beijing and Washington sparked by the drama involving a US ship and Chinese vessels off China on Sunday, and also over human rights in Tibet.

The United States and China have agreed on the need to reduce tensions and avoid a repeat of a confrontation between American and Chinese vessels in the South China Sea, Secretary of State Hillary Rodham Clinton said.

The Chinese Defense Ministry has demanded that the US Navy end surveillance missions off China's southern coast following a weekend confrontation between an American vessel and Chinese ships.

Amid a chill in Indo-Pak ties, US Secretary of State Condoleezza Rice and Chinese Foreign Minister Yang Jiechi called up External Affairs Minister Pranab Mukherjee and discussed the situation arising out of Mumbai terror attacks.