India carried out the air strike to avenge the Pulwama attack in which 40 CRPF personnel were killed.
The two leaders also exchanged views on the current situation in the region and discussed bilateral issues.
India has traditionally been risk averse in undertaking military operations on foreign soil.
Speaking on the country's National Day, Alvi said that the country's desire for peace should not be misconstrued as a sign of weakness.
Chinese Foreign Ministry spokesman Geng Shuang said that it can't be told whether the issue of listing of Azhar as 'global terrorist' would figure in the talks.
Pakistan and China shouldn't create hurdles in designating Azhar as global terrorist: Dawn newspaper
Pakistan's daily newspaper said that a hard crackdown on terror groups in the country is needed as it will help Islamabad regain the respect of the international community.
On February 14, a JeM suicide bomber killed 40 CRPF personnel at Pulwama. Thirteen days later, Indian Air Force jets bombed three terrorist camps in Pakistan.
India will be 'patient' with China for 'as long as it takes' to list Masood Azhar as global terrorist
India continues to work with the UNSC's sanctions committee on the listing of JeM chief Masood Azhar as a global terrorist, official sources said.
The meeting started after the arrival of the Pakistani delegation via the Attari-Wagah joint check post land border.
Both the countries asked Islamabad to have special focus on cross-border attacks after representatives of the nation held talks in Washington.
The Express Tribune reported that the assessment was shared by a senior official on Monday in a background briefing on the current state of relations between the two neighbouring countries.
The statement that 'China will not pick sides' by a state-run media house is likely to deal a blow to the confidence of Pakistan which has held that Beijing would not allow India to run over it.
A Pakistani official said that if India stops water flow to Pakistan, the latter will move the International Court for Arbitration.
On Saturday morning, another drone tried to enter Indian territory at around 5 a.m. at the Hindumalkot border near Ganganagar sector.
Pakistan has been avoiding being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing rules by the FATF.