Chinese Premier Wen Jiabao (R) shakes hands with Pakistani Prime Minister Shaukat Aziz during a welcome ceremony Wen hosts for Aziz in the Great Hall of the People in Beijing, capital of China, Dec. 15, 2004.

China will enhance cooperation with Pakistan in economic and anti-terrorism activities, Premier Wen Jiabao said Wednesday, adding that China welcomes the improvement of Pakistan-India ties.

"China and Pakistan have established an all-weather, all-around cooperative partnership despite volatile international changes," Wen told Pakistanis Prime Minister Shaukat Aziz in the Great Hall of the People in downtown Beijing.

Sino-Pakistani trade increased steadily in recent years, and the two countries conducted fruitful cooperation in infrastructure construction, Wen said. He noted that the two economies were complementary and have "great potential."

Wen suggested the two sides to speed up the study of establishing a free trade area (FTA) and focus on energy, natural resources cooperation and agriculture.

Aziz told Wen that Pakistan recognizes China's full market economy status, which helps pave the way for the forging of an FTA.

The two leaders witnessed the signing of seven economic agreements, including one on trade facilitation and FTA study, after their talks.

China is eager to further cooperation with Pakistan in educational and cultural fields, such as teaching of the Chinese language, higher education, science and arts, Wen acknowledged.

However, terrorism and extremism were directly endangering the security of both China and Pakistan, as well as regional peace and stability, Wen said, urging the two countries to take further actions and enhance anti-terrorism cooperation.

Wen said that China endeavors to develop friendly and cooperative ties with all neighboring countries, including South Asian nations.

"China welcomes the constant improvement of Pakistan-India ties," Wen said. "China will play an active role in promoting peace, stability and development in South Asia."

Wen said he appreciated Pakistan's support on the Taiwan issue and other problems concerning Chinese sovereignty and core interest.

Aziz agreed with Wen's remarks on bilateral ties, saying that the Pakistan people took pride in their friendly relations with China.

Pakistan and China have had fruitful cooperation in politics, economy, foreign affairs and personnel exchange, Aziz said. He said the exchange of high-level visits strongly backed the development of bilateral relations.

Trade and economic ties were "booming with great potential," and China's political support and economic aid helped Pakistan's economic and social development, he said, adding that Pakistan's government and people appreciate that.

The Pakistan Prime Minister said he hope that more Chinese entrepreneurs would participate in his country's economic progress, especially in trade and investment, culture and tourism.

Pakistan was holding comprehensive dialogue with India and was willing to settle problems on the basis of equality and peaceful coexistence, Aziz said. Pakistan hopes China will continuously play an active role for the peace in the region, he said.

Shaukat Aziz arrived in Beijing Tuesday night for a five-day official visit. It's his first visit to China after assumption of the Prime Minister in August this year.