BEIJING: China on Thursday called upon India and Pakistan to intensify the process of dialogue and cooperation in order to safeguard peace and stability in South Asia.

"It is also in line with the requirements for regional peace and stability and the common expectation of the international community," Chinese foreign ministry spokesman Liu Jianchao while responding to a question regarding last week's terrorist attack in Mumbai.

China is showing signs it is worried about heightening of tensions between India and Pakistan because it might affect the delicate diplomatic balance in the region, sources said. Worsening of conditions between India and Pakistan on the issue of terrorism might draw in the United States and make it very difficult for Beijing to stay neutral.

It was in the fundamental interest of both India and Pakistan to strengthen dialogue and bilateral cooperation, Liu said. He did not discuss the situation emerging out of India's claims that the attack was conducted by Pakistan-based elements and it was time for Islamabad to take concrete action to end it.

Li Wei, director of anti-terrorist studies of China Institutes of Contemporary International Relations, earlier said that the Mumbai attack will have profound influence on other nations in Asia. The attack also demonstrated that the usual measures taken by Asian governments on issues like early warning system and risk evaluation are not sufficient to be prepared for such brazen attacks, he said.

However, Li is of the view that terrorists who carried out the attacks on Mumbai came from within India and not from another country. He also castigated the India government for blaming Pakistan every time there was a major incident of terrorism in order to distract public mind away from its own shortcomings.