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``China supports and welcomes the efforts made by India and Pakistan to ease the situation in South Asia,'' Mr. Li said in a telephone conversation with Mr. Sinha, the official Xinhua news agency reported. Mr. Sinha explained the current situation in South Asia and said India was ``ready to work with Pakistan to resolve their issues peacefully through dialogue and negotiation,'' Xinhua quoted Mr. Sinha as saying. Mr. Li also pointed out China's adherence to `good-neighbourly foreign policy' in which Beijing treats neighbours in a friendly way and takes neighbours as friends. He stressed that China attaches importance to strengthening friendship and cooperation with India. PTI
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