Chinese Premier Wen Jiabao said Sunday that China-Japan ties are at a crucial stage, urging the two countries to enhance mutual trust and step up dialogue and cooperation in all spheres.

"In the first decade of this century, China and Japan have taken an important step towards the goal of a strategic and mutually beneficial relationship after undergoing twists and turns," said Wen in his congratulatory letter to a meeting on China-Japan friendship.

The first meeting of the fifth 21st Century Committee for China-Japan Friendship, an advisory body for the two governments, opened in Beijing on Sunday to discuss various dimensions of China-Japan relations and provide policy suggestions to the two governments.

The committee, with Tang Jiaxuan, a former state councilor, and Taizo Nishimuro, Tokyo Stock Exchange (TSE) president, as chairs of the two sides, is holding a three-day meeting.

"At the crucial stage of bilateral relations, I hope the members from both sides will work closely and come up with valuable suggestions to contribute to the long-term friendship and common prosperity," Wen said.

The relations between China and Japan, two important neighboring countries in Asia, have seen stable development since Japanese Prime Minister Yukio Hatoyama took office last September.

Wen said the cooperation between China and Japan will "not only benefit both countries and Asia at large, but also exert positive and profound impact on world political and economic structure" in the face of complex international situation and many grave challenges.

Hatoyama in his congratulatory letter also urged the two countries to beef up understanding and cooperation to build comprehensively their strategic and reciprocal relations.

In his keynote speech at the meeting, Tang Jiaxuan made four proposals on advancing bilateral ties.

Tang proposed that the two countries continue to foster strategic mutual trust, work on the economic relations by highlighting cooperation in environmental protection, low-carbon economy and high-tech, boost cultural exchanges and enhance coordination in international and regional affairs.

He said China-Japan relations still face some problems and challenges that can't be neglected, noting that their political mutual-trust needs to be promoted, their national feelings towards each other need to be improved and some sensitive issues need to be properly handled.

Taizo Nishimuro also made proposals including enhancing political mutual trust, promoting trade liberalization, encouraging cultural exchanges and promoting Asian regional cooperation and world peace.