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In the meeting, Modi underscored the need to not allow differences on boundary-related matters to disturb peace and tranquility along the Line of Actual Control (LAC).
The two leaders noted that the special representatives on the India-China boundary question have a critical role to play in the resolution of the issue and for the maintenance of peace and tranquility in border areas.
Modi and Xi instructed the special representatives to meet at an early date and continue their efforts, Foreign Secretary Vikram Misri said at a media briefing.
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The foreign secretary said Modi and Xi reviewed the state of bilateral relations from a strategic and long-term perspective and they were of the view that stable ties between the two countries will have a positive impact on regional and global peace and prosperity.
Both Modi and Xi stressed that with maturity and wisdom, and by showing mutual respect, India and China can have a peaceful and stable relationship, Misri said.
He said restoration of peace and tranquility in border areas will create space for returning towards the path of normalisation of ties.
Officials will now take the next steps to discuss enhancing strategic communication and stabilising bilateral relations by utilising official dialogue mechanisms, he said.