New Delhi, Jan 9: Downplaying recent irritants in bilateral ties, India Monday sought closer collaboration with China to combat the global economic slowdown and to work jointly on international issues ranging from terrorism to climate change to shape a new world order.

“Uncertainty in the international system is at unprecedented levels. The economic and security situation facing both India and China has become far more complicated in the last few years,” National Security Adviser Shivshankar Menon said here.

Alluding to the global economic slowdown, Menon said: “The relatively benign external environment in the last two decades is changing negatively and is threatened by protectionism in the developed world.”

“I am convinced that our business and economic engagement with each other and with other countries will intensify as we seek to overcome the prospect of sluggish recovery in the traditional engines of growth in the world economy,” he said.

India’s bilateral trade with China has exceeded $67 billion and both countries have launched a strategic economic dialogue to address issues like the growing trade imbalance.

“It is therefore natural for us to take ever greater interest on global issues,” Menon said.

“Equally, global issues like climate change, nuclear proliferation and cyber and space security matter more to both India and China in this globalised world as they influence our development, peace and prosperity,” he said.

Saying the balance of power was in flux in Asia and the world, Menon called for closer global partnership between India and China.

“India and China have demonstrated an ability to deal with difficult issues and to build a cooperative partnership based on common interests. Its regional and global impact, and its long term significance to our own development, is what makes the India-China relationship strategic in the true sense of the term,” he said.

“I am confident that by working together India and China will be able to successfully face the challenges that the new geopolitics are throwing up, and would best serve their own national interests by further deepening their strategic cooperative relationship,” he said.

Menon also sought closer collaboration with China in combating terrorism emanating from the region. “Both India and China face the challenge of terrorism in our shared neighbourhood,” he said.