Jaishankar, who arrived in China from Sri Lanka, met Yang, who besides being the State Councillor is Beijing's Special Representative for border talks between India and China.
In Chinese official hierarchy, State Councillor of the ruling Communist Party of China (CPC) is regarded as the top diplomat functioning directly under the country's leadership.
Jaishankar is expected to meet Chinese Foreign Minister Wang Yi, besides attending an upgraded strategic dialogue with China's Executive Vice Foreign Minister Zhang Yesui tomorrow.
Ahead of the talks, China has appeared unrelenting in its opposition to impose the UN ban on Jaish-e-Mohammed (JeM) chief Azhar and ambivalent on India's membership to the 48-member Nuclear Suppliers Group (NSG).
Putting the onus on India to prove Azhar's involvement in the Pathankot terrorist attack, Foreign Ministry spokesman Geng Shuang told reporters on February 17 that China will back the move to list him only if there was solid evidence.
"Whether last year's application by India or this year's by relevant country our position is consistent. Our criteria is only one, we need solid evidence. If there is solid evidence the application can be approved. If there is no solid evidence there is hardly consensus," Geng said.
Also, bilateral ties have strained over the USD 46 billion
China-Pakistan Economic Corridor (CPEC), over which India has protested as it goes through the Pakistan-occupied Kashmir.
Officials say the strategic dialogue will cover the whole gamut of bilateral ties.
Two sides have been stressing that both sides are holding talks at various levels to iron out differences stressing that dialogue is the best way forward.
Commenting "friction points" including Azhar and NSG, Geng said "differences between China and India are inevitable, but through various forms of in-depth exchanges, including the upcoming Strategic Dialogue, differences can be minimised and new agreement can be reached on further cooperation".
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