Chinese President Hu Jintao made a four-point proposal in Beijing Tuesday to visiting Georgian President Mikheil Saakashvili for closer bilateral ties.

"Firstly, China is ready to enhance high-level exchanges so as to deepen political trust with Georgia," Hu told Saakashvili during the hour-long talks, adding that the two governments, legislative bodies and parties should set up dialogue and consultation mechanisms.

"Secondly, China is perseveres in enhancing reciprocal economic cooperation with Georgia," Hu said.

Hu listed economy and trade, agriculture, machine manufacturing, traffic and transportation, telecommunications and infrastructure construction as priorities for cooperation.

He said the Chinese government would encourage Chinese companies to increase investment in Georgia.

Hu also suggested that the two countries promote friendly intercourse through exchanges in culture, education, health and sports and enhanced communication between youth and civil organizations.

Fourthly, Hu said China hoped that the two countries would intensify cooperation and consultation on international issues.

He said China hoped to maintain consultations with Georgia on key issues of UN affairs, the fight against terrorism, cross-border crime and the forces of terrorism, separatism and extremism to maintain and safeguard world and regional peace and stability.

In response, Saakashvili said he fully agreed with Hu and he hoped the cooperation would turn the two countries into "reliable and good partners".

Hu also highlighted bilateral ties, saying that the people of the two countries had a friendship dating back more than 2,000 years ago via the ancient Silk Road.

Hu attributed the "healthy and smooth" growth of bilateral ties to three causes.

"We both believe that countries, no matter big or small, are equal and we respect and treat each other with sincerity. We've always shown mutual understanding and support on the key issues including national independence, sovereignty and territorial integrity. We both respect the other's choice of social system and development mode and don't interfere into the other's domestic affairs." Hu said.

Saakashvili said his people respected China, which had always developed relations with other countries on the basis of equality and mutual benefit.

He said Georgia appreciated China's help and support and would continue to follow the one-China policy and support China's efforts in national reunification.

Saakashvili arrived in Beijing on Monday for his first official state visit to China since taking office.

On Wednesday, Saakashvili is expected to meet with China's top legislator, Wu Bangguo, and Premier Wen Jiabao.

The Georgian President will also travel to Shanghai.

China and Georgia forged full diplomatic ties in 1992.

Source: Xinhua