They also continue to wrangle over territory in India's northeast claimed by Beijing, and a Chinese-held region on the Aksai Chin Plateau in the western Himalayas that India says belongs to it.
The daily said that "mutual suspicion was keeping the two countries from deepening cooperation and working together on regional and global issues".
The incident deepened strategic mistrust between the two giant neighbours, which were already saddled with simmering disputes along their 4,000km-long common border.
This will be a first such project in the war-torn country where China while trying to expand its influence has tacitly backed Pakistan, which has been accused by Afghanistan and the USA of backing the Taliban and its most violent attacks in the country destabilising any attempts to restore peace.
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During a press briefing, Foreign Secretary Vijay Gokhale said the two leaders underscored that it is important to maintain peace and tranquillity in all areas of the India-China border region. "Yet neither Beijing nor New Delhi calls the other an enemy, which means both expect bilateral ties to improve", it said.
That includes a border defence cooperation agreement signed in 2013 aimed at maintaining peace along the Line of Actual Control, which was established in 1993 - though the two sides have different definitions of it.
Ma stated that China would increase its share of imports from eastern India. They started the summit talks at the Hubei Provincial Museum where Mr Xi took Mr Modi around introducing the historic artefacts.
"The Indian side does not exclude this cooperation".
"The Doklam [stand-off] suggests no confidence-building measures were effective", said Srikanth Kondapalli, a China affairs expert at Jawaharlal Nehru University in New Delhi. The BPTA by and large ensured two countries contained their disputes. India should let China believe that it will never take part in an Asian version of North Atlantic Treaty Organisation or the Indo-Pacific strategy aimed at opposing China. "But Doklam showed that these communication channels are simply not effective in a crisis. that's why high-level military communication is needed".
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On Friday evening, the Chinese President hosted a dinner in honour of the visiting Indian Prime Minister.
Modi, during a 2-day visit to China, held long informal talks with the Chinese leader, amid growing concerns about a trade row between China and the United States in which the two nations have threatened each other with tariffs.
Prime Minister Modi and President Xi underlined that as two major countries India and China have wider and overlapping regional and global interests.
In a tweet, Mr Modi said discussions over tea had been productive and that "Strong India-China friendship is beneficial for the people of our nations and the entire world".
This summit has the potential to open advantageous opportunities for both the countries.
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