Visiting Chinese Premier Wen Jiabao held talks with his Italian counterpart Silvio Berlusconi on Friday in Rome to discuss ways to deepen the bilateral ties and international issues of common concern.

Before the talks, Berlusconi held a welcoming ceremony in Wen'shonor. The two governments are expected to issue a joint declaration following the talks. Berlusconi will also host a banquet in Wen's honor in the evening.

The Chinese premier arrived in Rome on Thursday for an officialvisit. He and his Italian counterpart attended and addressed the Seminar on Promoting Investment between China and Italy on Friday and later the Chinese premier visited the Italy's major airspace company Alespazio.

Alenia Spazio is the major Italian space company. Its capabilities and experience make it one of the leaders in Europe and it has contributed to the construction of around 200 satellites. The company's activities cover four high technology areas: telecommunications, remote sensing, orbital infrastructuresand scientific satellites. Some 3,000 employees work in these sectors in seven plants containing 16,000 square meters of clean rooms and laboratories that are amongst the most advanced in the world.

The Chinese premier also met with Italian President Carlo Azeglio Ciampi and speakers of the Chamber of Deputies and the Senate on Friday.

The friendship and cooperation between China and Italy in everyrespect have witnessed smooth development since the establishment of diplomatic ties in 1970 . In recent years, exchange of visits between the leaders of the two sides has increased, which promotedthe understanding between the two sides, and pushed the bilateral relationship forward.

Italy is China's fifth trading partner in the European Union. The Sino-Italian economic and technological cooperation has also witnessed a rapid development. In 2003, bilateral trade volume stood at 11.7 billion US dollars.

The Chinese premier kicked off his 11-day European tour on Sunday, the first visit to Europe by Wen since he took office as premier one year ago. Italy is the third country of the premier's five-nation tour, which has taken him to Germany and Belgium. He will also visit Britain and Ireland.