Economic cooperation

Consolidated ties have triggered an increase in bilateral trade volume in recent years, Medvedev said, adding that two-way trade volume is targeted to reach 60 billion US dollars this year.

Chinese imports from Russia mainly include products from the energy and technological sectors. The two sides should also emphasise the optimization of trade structure, apart from increasing trade volume, he said.

Russia has paid close attention to the development of the Chinese economy, the demands of which are totally very different from those 10 to 15 years ago, Medvedev pointed out.

In the present scenario, Russia has to strengthen the competitiveness of its enterprises, and manufacture products of higher standard, the president said.

"Such cooperation is beneficial for both sides," he noted.

Medvedev expressed confidence that the 21st century will be a time for the two countries to cooperate in astronautics, nanometer technology, shipbuilding, auto manufacturing and other high-tech areas, to boost the development of their economies.

He said Russia plans to enhance and develop energy cooperation with China, which is crucial to bilateral trade and economic ties.

Russia exported energy valued at some 500 million dollars to China in 2001, but the figure surpassed 6.7 billion dollars last year, Medvedev said.

The two nations have reached a basic agreement on the East Siberia-Pacific Ocean oil pipeline and its branch to China, said Medvedev, adding that negotiations between Russia's largest oil company Rosneft Oil and the China National Petroleum Corporation are nearly complete.

While expressing his willingness to establish new oil refineries with China, he said natural gas cooperation between Russia and China is also under discussion.