China and Portugal will expand exchanges and co-operation in higher education, science and technology and judicial departments, President Hu Jintao told his Portuguese counterpart, Gorge Sampaio.

"The two countries should strengthen bilateral trade and economic co-operation as well support enterprises from each side to seek brand new co-operation in more areas through new ways," Hu said.

To push forward the overall relationship, China will work with Portugal to maintain high-level visits, enhance exchanges between parliaments and parties and increase consultation and co-operation between foreign affairs ministries and other departments, Hu said.

China pays a lot of attention to the role of the forum on trade and economic co-operation between China and Portuguese-speaking countries, said Hu, adding that China will seek further co-operation with those countries within the framework.

The successful development of Macao after its return to China in 1999 has proved the complete implementation of the principles of "one country, two systems" and "the Macao People Governing Macao" in the Macao Special Administrative Region, Hu said.

As the first state leader to visit China in the new year, Sampaio echoed Hu's suggestions on the development of bilateral relations.

He said more than Portuguese 120 entrepreneurs accompanied his visit, which was testament to the attention and expectations of the economic circles of Portugal on trade and economic co-operation.

Sampaio reiterated that the one-China policy is an important component of Portuguese foreign policy.

The smooth settlement of the Macao issue has set an excellent example for international communities in dealing with historical problems, he said.

After their meeting, the two leaders signed seven agreements on judicial and economic co-operation, cultural exchanges and the mutual acknowledgement of educational backgrounds and degrees.