Addressing future leaders at the Chinese Communist Party's Central Party School, Singh said old theories of alliances and containment are no longer relevant.
"India and China cannot be contained and our recent history is testimony to this. Nor should we seek to contain others," he said.
The Prime Minister was received with a standing ovation and his speech on "India, China - A New Era" was given a huge round of applause by the audience.
He said India has welcomed President Xi Jinping's concept of a new type of great power relations.
"This is a contemporary development of the Panchsheel or Five Principles of co-existence, elaborated by Prime Minister (Jawaharlal) Nehru and Premier Zhou Enlai in the 1950s," Singh said.
A day after reaching accords on cooperation in border defence and trans-border river issues, Singh said maintaining peace and tranquillity in the India-China border region has been the cornerstone of the bilateral relationship.
The address to the Communist Party Central School is a rare honour given to visiting leaders from abroad.
The Prime Minister also spelt out a eight-point roadmap of areas offering cooperation between the two countries and invited Chinese investment in Indian plans to invest USD one trillion in infrastructure in the next five years.
