India and China have agreed to set up a new hotline at the ministerial level for “timely exchange of views’’, but continued to differ on the centrality of the border situation to the bilateral relationship with New Delhi insisting that it cannot be business as usual without peace and tranquillity and Beijing maintaining that it should not eclipse ties.

“Border disputes are an objective reality and need to be attached adequate attention and taken seriously. However, they are not the whole story of China-India relations, and should be placed in a proper position in the bilateral relationship,’’ Chinese foreign minister Wang Yi told Indian counterpart S. Jaishankar in a 75-minute phone call on Thursday.

Stating that the boundary question may take time to resolve, Jaishankar iterated that disturbance of peace and tranquillity, including by violence will inevitably have a damaging impact on the relationship.

According to the Indian readout of the conversation, Jaishankar underscored that it was necessary to disengage at all friction points in order to contemplate de-escalation of forces in this sector.

“That alone will lead to the restoration of peace and tranquillity and provide conditions for progress of our bilateral relationship.’’

Further, external affairs ministry quoted him as stating that both sides had always agreed that maintenance of peace and tranquillity in border areas was an essential basis for development of bilateral relations.

“A prolongation of the existing situation was not in the interest of either side. It was, therefore, necessary that the two sides should work towards early resolution of remaining issues.’’

The lengthy conversation took place a week after the completion of the disengagement process on the north and south banks of the Pangong Tso, following which the senior commanders met to work towards the same at other friction points along the Line of Actual Control (LAC) in Ladakh.

Jaishankar is said to have emphasised the need for both sides to now quickly resolve the remaining issues along the LAC in Eastern Ladakh. And, once disengagement is completed at all friction points, then the two sides could also look at broader de-escalation of troops in the area and work towards restoration of peace and tranquillity.

On the disengagement at Pangong Tso, Wang is quoted as saying that it has significantly defused the situation on the ground.