China and India shared that they had agreed to de-escalate renewed tensions on their contested Himalayan border and take steps to revive “peace and tranquility” following a high-level diplomatic meeting in Moscow.

Chinese State Councilor Wang Yi and Indian Minister for Foreign affair S. Jaishankar engaged in a meeting in Moscow on Thursday and reached a five-point consensus, including agreements the present border situation isn’t in their interests and troops from either side should quickly disengage and ease tensions, said during a joint statement.

The consensus struck on the sidelines of a Shanghai Cooperation Organization meeting, came after a clash at the Ladakh border earlier in the week.

Shares of defense-related firms fell in China early Friday after the news, with the CSI National Defense Industry Index down 1.2 percent and on target for its steepest weekly decline since October 2018. Tongyu Heavy Industry shares tumbled to 16.4pc.

China and India accused one another of firing into the air during the confrontation, a violation of a long-held protocol to not use firearms on the sensitive frontier.

Wang told Indian counterpart during the meeting that the “imperative is to immediately stop provocations such as firing and other dangerous actions that violate the commitments made by the two sides,” China’s foreign ministry said while giving a statement on Friday.

Wang also told the Indian Minister for Foreign affair all personnel and equipment that have trespassed at the border must be moved along with frontier troops on each side “must quickly disengage” so as to de-escalate the scenario.

The comments contrast with the recent show of force by the Chinese military. China’s Global Times, an influential tabloid published by the official newspaper of China’s ruling party, reported on Wednesday the People’s Liberation Army (PLA) were moving soldiers, bombers, and armored vehicles into the border.

Chinese media recently reported armed jump drills by PLA paratroopers in Tibet.

The Global Times said in an article published late Thursday that any talks with India should be paired with “war readiness”.

“The Chinese side must be fully prepared to require action when diplomatic engagement fails, and its frontline troops must be ready to respond to emergencies, and be able to fight at any time,” the newspaper said.

“India has abnormal confidence in confronting China. It doesn’t have enough strength. If India is kidnapped by extreme nationalist forces and keeps following its radical China policy, it’ll pay a heavy price.”