China hopes the Palestinian-Israeli conflict can be resolved through peaceful talks, Premier Wen Jiabao said in Cairo yesterday.

"China maintains the need for peaceful negotiations under the principle of 'land for peace,' in an effort to solve the conflict and facilitate regional peace and stability," Wen said at a news conference at the end of his two-day official visit to Egypt.

The conflict between the Palestinians and Israelis is a flash point in the Middle East, he said, adding that the key to solving it was following the relevant United Nations resolutions and the roadmap peace plan. "China is hoping for a peaceful, stable and growing Middle East and wants to play a role in promoting peace and facilitating peace talks."

Wen arrived in Cairo on Saturday afternoon, on the first leg of his seven-nation African tour, which will also take him to Ghana, the Republic of Congo, Angola, South Africa, Tanzania and Uganda.

Earlier yesterday, he met with Egyptian President Hosni Mubarak to discus enhancing Sino-Egyptian relations, the Middle East, and the Iranian nuclear standoff.

The meeting came a day after Wen and his Egyptian counterpart, Ahmed Nazif, witnessed the signing of 11 trade, business and co-operation agreements between the two countries.

The agreements include an implementation outline for deepening strategic and co-operative relations between the two countries, deals to manufacture communications equipment and preferential loans from China to Egypt.

Wen told Mubarak that China and Egypt should work together towards both national development and world peace. China was ready to increase investment in Egypt, especially in oil, natural gas and telecommunications, he said.

Responding to the Chinese premier, Mubarak said he had witnessed the "brotherly relationship" between China and Egypt over the past years and looked forward to his upcoming visit to China later this year.

Wen's visit coincided with the 50th anniversary of diplomatic relations between Egypt and China an event which folklore troupes from the two nations celebrated on Saturday evening at a gala in front of the Giza pyramids.

Trade between Egypt and China topped US$2.1 billion last year, an increase of 36 per cent over the previous year, according to statistics from the Commerce Ministry.

During talks with Egyptian Prime Minister Ahmed Nazif on Saturday afternoon, Wen said bilateral relations have developed constantly, and Sino-Egyptian friendship and co-operation was at an "unprecedented level."

Source: China Daily