"The two sides are preparing for the exercises now. The drill will promote understanding between the two militaries and improving their capabilities in fighting terrorism," defence ministry spokesman Col Ren Guoqiang said.
India and China have been following the path of de-escalation of tensions post-Doklam with a number of confidence-building measures including meeting officials with PM Modi and President Xi meeting at various times in the past year to pledge greater cooperation between the two countries.
Top officials from both countries recently met at the 21st India-China border talks held at Dujiangyan near Chengdu in southwestern Sichuan province. National Security Advisor Ajit Doval and China's state councillor and foreign minister Wang Yi also took part in the talks.
"The two sides agreed to follow the consensus reached by the top leaders of the two countries to promote military relationship under the principle of maintaining peace and tranquillity and enhancing the trust, friendship and cooperation," Col Ren said.
"True to its name - 'Hand in Hand' - we believe China and Indian militaries should work hand in hand for the benefit of people in both the nations," he added.
The two armies will send around hundred troops in the fourteen-day drill which will conclude on December 23rd. The military drill will "live shooting" and "basic training" aimed at counter-terrorism operations.
The exercise will be held in China's southwest city of Chengdu.
Col Ren also said China and Pakistan will hold 7th joint Air Force exercises in Bholari Air Force base in Pakistan from November 30 to December 23.
China will send its fighter jets and bombers and early warning AWACS planes to the exercise, he said, adding that the exercise will help improve combat capability of both sides
Top officials from both countries recently met at the 21st India-China border talks held at Dujiangyan near Chengdu