China, as an observer of South Asian Association for Regional Cooperation (SAARC), has proposed to expand its cooperation with South Asia and elevate friendly ties with the bloc to a new level, said Chinese Vice Foreign Minister Wang Guangya in Thimphu Wednesday.

"China stands together with all the other developing countries including countries in South Asia, in firmly upholding our common interest," said the Chinese vice foreign minister while addressing the 16th summit, which opened in Bhutanese capital Thimphu on Wednesday.

China has proposed to contribute 300,000 US dollars to the SAARC Development Fund, according to the Chinese official.

The SAARC Development Fund based in Thimphu came into exist during the 15th summit held in Sri Lanka in 2008 and got its full- fledged appearance after the formal opening on Wednesday at the 16th summit.

To continue the constructive role in the development of SAARC, China has decided to invite SAARC Secretary General Sheel Kant Sharma to visit China in 2010. China will also be hosting the 3rd South Asian Countries Commodity Fair and China-SAARC Senior Officials' Meeting and the 5th China-South Asia Business Forum.

Responding the call made by SAARC leaders to address the adverse impact of climate change that the region is experiencing, Wang, who heads the Chinese delegate as an Observer, said that developed countries should provide financial, technical and capacity-building assistance to developing countries to enhance their ability to cope with climate change.

"China is ready to strengthen practical cooperation with South Asian countries on climate change through bilateral channels and within the framework of South-South Cooperation," said Wang.

On the basis and in a spirit of equality and mutual benefit, China is ready to conduct dialogue and exchanges and expand practical cooperation with SAARC, according to Wang.

The SAARC, the most important regional alliance, was established in 1985. It groups eight member states -- Nepal, India, Bhutan, Bangladesh, Maldives, Sri Lanka, Pakistan and Afghanistan.

China became an SAARC observer in 2005.