BEIJING - Chinese Premier Li Keqiang said on Wednesday that Chinese and Indian governments are capable of managing border disputes and he hopes the disputes will not affect overall bilateral relations.

Addressing a press briefing together with visiting Indian Prime Minister Manmohan Singh after their meeting, Li said they both believe the two countries have more common interests than disagreements and the people and governments of the two countries have the ability to manage border disputes.

After the meeting, China and India signed a memorandum of understanding on strengthening cooperation on trans-border rivers, and they agreed to cooperate through an existing mechanism between experts in the two countries.

Li urged the two countries' special representatives on border issues to maintain communication and discuss a fair and reasonable solution acceptable for both sides.

Li also emphasized that the two sides should faithfully implement relevant agreements and jointly safeguard peace and tranquility in border areas.

China and India are among the biggest developing countries and are the most dynamic emerging markets, Li said, adding that China-India ties enjoy great development potential and the bilateral relationship is one of the most important in the 21st century.

Li said that China is willing to work with India to benefit 2.5 billion people and make more efforts for world peace, development and cooperation, adding that the two sides will further increase political trust, promote pragmatic cooperation and strengthen cultural exchanges.