China and Myanmar on Monday agreed to properly settle matters related a suspended joint hydropower project in Myanmar, and both sides pledged to increase cooperation and work toward bringing mutual benefits to the two nations.

The agreement was reached in Beijing during talks held between Chinese Foreign Minister Yang Jiechi and his Myanmar counterpart U Wunna Maung Lwin, who is visiting China as a special envoy of Myanmar President U Thein Sein.

According to a press release issued by the Chinese Foreign Ministry after the talks, the two sides have conducted a thorough consultation over the Myitsone hydropower plant project, which was ordered to be suspended by Myanmar's president.

The two foreign ministers also exchanged views on bilateral relations and other issues of common concern, with both voicing commitments to push forward the bilateral comprehensive and strategic partnership in a bid to achieve joint development, said the press release.

Vice President Xi Jinping also met with U Wunna Maung Lwin on the same day. Xi urged the two sides to properly settle relevant matters that have emerged during the course of cooperation through friendly consultations.

China always attaches great importance to the China-Myanmar good neighborly and cooperative relations and is willing to continue its efforts to promote the bilateral pragmatic cooperation based on principles of mutual respect, equality and mutual benefit, the press release quoted Xi as saying.

U Wunna Maung Lwin conveyed and passed on greetings and a personal letter from Myanmar President U Thein Sein to President Hu Jintao.

He said U Thein Sein and the Myanmar government highly value its friendly relations with China and has been paying close attention to China's relevant concerns.

Myanmar will work closely with China to strengthen the mutually beneficiary cooperation and further enrich the comprehensive and strategic partnership between the two nations, U Wunna Maung Lwin said.

The Myitsone hydropower plant project started in December 2009. With an installed capacity of 6,000 megawatts (mw), it is estimated to yield 29,400 million kilowatt-hours a year upon completion, which had been slated for 2019.