Visiting Chinese Premier Wen Jiabao said in Seoul on Wednesday that the Chinese government encourages South Korean enterprises to participate in the revitalization of the old industrial base in northeastern China.

"South Korean enterprises are welcome to participate in the infrastructure and ecological environment construction in western China, the revitalization process of the old industrial base in northeastern China, and the restructuring of the state-owned enterprises," Wen said at a luncheon with some entrepreneurs from both countries.

Both sides should join efforts to eliminate all barriers and promote mutual investment, he said.

China hopes that South Korean enterprises could expand their investment in such sectors as agriculture, high-tech industry and services, Wen added.

He said the Chinese government encourages and supports South Korean enterprises to invest in China.

Bilateral trade between the two countries has achieved rapid development in the past 15 years. The trade volume between the two countries reached 134.3 billion U.S. dollars last year, a 260-percent increase from the 50 billion dollars in 1992.

South Korea has set up more than 30,000 enterprises in China by the end of 2006, with an accumulated investment of 35 billion dollars. Meanwhile, more and more Chinese enterprises choose to invest in South Korea.

Wen, who arrived here Tuesday morning for his first-ever visit as a premier to South Korea, held talks with his South Korean counterpart Han Duck-soo and South Korean President Roh Moo-hyun, and attended the opening ceremony of the China-South Korea Exchange Year.

He will leave for Japan on Wednesday and is scheduled to conclude his two-nation tour on Friday.

Source: Xinhua