China and India, the two large Asian neighbors, have expressed in a joint statement their desire to develop "closer and more extensive" understanding and cooperation in regional and international affairs.

"Aware of their linked destinies as neighbors and the two largest countries of Asia, both sides agreed that they would, together, contribute to the establishment of an atmosphere of mutual understanding, trust and cooperation in Asia and the world at large, and facilitate efforts to strengthen multilateral coordination mechanisms on security and cooperation," said the statement signed in New Delhi Monday by visiting Chinese Premier Wen Jiabao and Indian Prime Minister Manmohan Singh.

As two large developing countries, China and India were both aware of each other's important role in the process of promoting the establishment of a new international political and economic order, it said.

"Both sides share common interests in the maintenance of peace, stability and prosperity in Asia and the world at large, and share the desire to develop closer and more extensive understanding and cooperation in regional and international affairs."

The statement noted that the two sides are supportive of democratization of international relations and multilateralism, stand for the establishment of a new international political and economic order that is fair, rational, equal and mutually beneficial, and promote North-South Dialogue and South-South Cooperation.

They expressed belief in the statement that the international community should eliminate poverty, narrow the gap between North and South, and achieve common prosperity through dialogue and cooperation.

The two sides also reiterated the importance of the United Nations in global peace, stability and common development, according to the statement. They expressed their determination to continue their efforts, together with the international community, in strengthening the UN system to develop a sound multilateral basis to address global issues.

They agreed in the statement that reform of the United Nations should be comprehensive and multi-faceted and should put emphasis on an increase in the representation of developing countries.

According to the document, the Indian side reiterated its aspirations for permanent membership of the UN Security Council, and the Chinese side also reiterated that India is an important developing country and is having an increasingly important influence in the international arena.

China attaches great importance to the status of India in international affairs, understands and supports India's aspirations to play an active role in the United Nations and international affairs, the statement said, adding the two sides reaffirmed their readiness to conduct close consultations and cooperation in the process of the UN reforms.

The two sides resolutely condemn terrorism in any form, admit that the struggle between the international community and global terrorism is a comprehensive and sustained one, said the statement.

It said both sides noted the positive outcome of the meetings held so far of their bilateral dialogue mechanism on counter- terrorism and agreed to further strengthen and consolidate their discussions and cooperation.

The statement said both sides agreed to conduct regular exchange of views on major international and regional issues, strengthen cooperation in the WTO and other international multilateral organizations, and to continue the consultations on other issues of common concern.

"They agreed to work together to preserve stability and growth in the global economy and reduce disparities between developed and developing countries. They supported an open, fair, equitable and transparent rule-based multilateral trade system and resolved to safeguard the legitimate rights and interests of the developing countries," it said.

Wen is paying an official visit to India from April 9 to 12 at Singh's invitation, the last leg of his four south Asian nation tour which has also taken him to Pakistan, Bangladesh and Sri Lanka.