Chinese Vice Premier Li Keqiang on Tuesday discussed bilateral relations and other issues of common concern with Papua New Guinean Prime Minister Michael Thomas Somare.

Chinese Vice Premier Li Keqiang (R) shakes hands with Papua New Guinean Prime Minister Michael Thomas Somare in Port Moresby, Papua New Guinea, Oct. 3, 2009. [Liu Jiansheng/Xinhua]

Li said Papua New Guinea, as the largest developing country in the South Pacific, has great influence over regional issues.

He said China attaches great importance to bilateral ties with the Pacific island nation, which China has always regarded as a reliable friend and partner.

In recent years, Li said, the two countries have conducted frequent high-level exchanges, deepened political mutual trust, broadened exchanges and cooperation in an extensive number of sectors.

The two countries also have maintained good communication and coordination in multilateral affairs, Li said.

China appreciates the Papua New Guinean government's adherence to the one-China policy, Li said.

He said China is willing to work with Papua New Guinea to put into practice all of the important agreements reached by leaders from both countries, promote exchanges on various levels and explore the potential for economic and trade cooperation.

The vice premier said China has always been supportive of Papua New Guinea's social and economic progress, and would continue to provide assistance to the best of its ability.

Somare, on his part, said his government cherishes its cooperative relationship with China and that the past 33 years have witnessed marked development of the relationship.

He said, as the country's sixth largest trading partner, China has played an active and significant role in promoting Papua New Guinea's social and economical development.

During the talks, Somare reaffirmed his country's continued adherence to the one-China policy.

Li said China and Papua New Guinea have economies that are complementary to each other's and there is huge potential for cooperation.

Two-way trade totaled 860 million U.S. dollars in 2008.

The vice premier said China will continue to encourage more of its enterprises to invest in Papua New Guinea. Both countries, he said, should broaden their areas of cooperation to agriculture, manufacturing and high-tech, apart from energy and resources.

Somare said Papua New Guinea would like to strengthen cooperation with China in trade, investment, agriculture, infrastructure, manufacturing, education and healthcare.

He also said the preferential loans China has provided to Pacific island nations over the past three years have greatly helped the overall economic and social development of these nations.

Li arrived here on Tuesday on an official visit to Papua New Guinea, the last leg of his three-nation tour. Ha has already visited Australia and New Zealand.