The two leaders agreed to further strengthen their defence relations, including the defence industry with joint defence production and development. They also agreed to increase collaboration in the areas of defence training and joint exercises.
Pakistan and China had on Tuesday signed a framework agreement to boost their defence relations and co-operation following talks between President Musharraf and his Chinese counterpart Hu Jintao.
President Musharraf and the Chinese Defence Minister noted the shared perceptions between their countries on a range of regional and international issues and agreed that their close relations were vital for the peace and stability of the region.
Later, the President left Beijing for China's south-west Sichuan province on the second leg of his state visit to China.
In the Sichuan's capital of Chengdu, the President is scheduled to visit China Aircraft Designed Institution and China Aircraft Manufacturing Company (CAMC) on Thursday.
China and Pakistan tested the first prototype of the JF-17 in August 2003 while another test flight was made in Chengdu in September the same year.
With its advanced design and state-of-the-art manufacturing technology, the JF-17 has the combat capability of a third-generation fighter place and is at par with the world's most advanced light fighter aircraft.