Chile was the first Latin American country to sign a bilateral agreement on China's entry into the World Trade Organization, to recognize China's full market economy status and sign a bilateral free trade agreement with China.

Chinese President Hu Jintao (2nd R, front) talks with visiting Chilean President Sebastian Pinera (L, front) during their meeting in Beijing, capital of China, Nov. 16, 2010. Hu jintao held talks with Sebastian Pinera at the Great Hall of the Pople in Beijing on Tuesday. [Liu Weibing/Xinhua]

Chile is China's second biggest trade partner in Latin America and China is Chile's biggest trade partner. Bilateral trade last year rose 2.1 percent to 17.72 billion dollars.

"Trade cooperation is on the rise, and the two countries have become important trading partners," said Hu.

"The facts prove that the development of China-Chile relationship complies with the fundamental interests of both peoples and is conducive to the common development of the two countries," said Hu.

Hu urged the two countries to deepen political trust, increase cultural exchanges and enhance coordination within international and regional organizations.

Pinera said Chile was ready to work with China in terms of economic cooperation in the Asia-Pacific region, the Doha Round trade talks, the reform of global financial institutions and climate change.

Pinera said Chile would firmly stick to the one-China policy.

Hu extended his congratulation on the 200th anniversary of Chile's independence and the successful rescue last month of 33 miners who had been trapped 700 meters underground for more than two months.

On Wednesday, Pinera is scheduled to have meetings with top Chinese legislator Wu Bangguo and Premier Wen Jiabao, and to attend celebrations marking the 40th anniversary of bilateral ties before concluding his visit.