As a neighbor and friend of India and Pakistan, China will continue to support the two sides to improve relations through dialogue and cooperation and accomplish collaborative development, Foreign Ministry spokesman Hong Lei said Thursday.

Hong Lei made the remarks while addressing Pakistan's decision to grant Most Favored Nation (MFN) status to India at a press briefing.

Both India and Pakistan are important countries in south Asia, Hong said, adding that their improving bilateral relations are vital for the area's peace, stability, and development.

Pakistan's federal cabinet approved India for MFN status and agreed to boost bilateral trade volume from 2.5 billion to 5 billion U.S dollars.

India granted Pakistan MFN status in 1996.