On the last leg of his China tour, Defence Minister George Fernandes will hold talks with senior Chinese Military officials and visit naval facilities, official sources said on Friday.

Fernandes arrived in Shanghai after visiting Chinese military facilities in Xian as part of efforts to enhance bilateral military-to-military trust and understanding and promote stable bilateral ties.

The visit to military establishments in north Chinese city of Tianjin as well as in Xian, capital of northwest China's Shaanxi province provided a glimpse of China's efforts to modernise the world's largest standing 2.5 million strong People's Liberation Army.

The ongoing visit of Fernandes, the first by an Indian defence minister since 1992, is considered significant, especially since Fernandes had antagonised the Chinese leadership as well as the People's Liberation Army generals prior to and after the Indian nuclear tests of May 11, 1998.

Notwithstanding the remarks, PLA extended a red carpet welcome to the Indian Defence Minister and the top Chinese leadership held talks with him in a 'candid' manner and called for strengthening of bilateral ties.