Chinese President Hu Jintao on Tuesday met with visiting New Zealand Prime Minister John Key.

Chinese President Hu Jintao (R) meets with New Zealand's Prime Minister John Key at the Great Hall of the People in Beijing, capital of China, April 14, 2009. [Huang Jingwen/Xinhua]?

Hu told Key China-New Zealand ties had progressed smoothly since the two countries established diplomatic ties in December 1972. Hu said both sides had increased their high-level visits and deepened their political trust in recent years.

Key, who was on his first China visit since becoming New Zealand Prime Minister in January 2008, said his country was proud to take the lead in developing ties with China.

New Zealand was the first developed country to sign a bilateral agreement with Beijing on China's re-entry into the World Trade Organization. It is also the first developed country to recognize China's status as a full market economy.

"The signing of China-New Zealand free trade agreement (FTA) has provided a mechanism and created favorable conditions for bilateral cooperation of mutual benefit," Hu said while lauding bilateral trade progress.

The bilateral FTA deal was signed last April, making New Zealand the first Western developed country to sign the FTA with China.

The president said China was satisfied with relations with New Zealand, citing bilateral fruitful cooperation on culture, education, science, technology and tourism, and good communication and consultation on multilateral issues.

Looking to the future, Hu said China would like to work with New Zealand to strengthen dialogue at various levels, expand substantive cooperation in all fields and properly handle the sensitive issues in bilateral relations.

Hu said both countries should increase communication and coordination on issues concerning the United Nation, climate change and regional cooperation in a bid to take bilateral relations to a new high.

As the two economies were complementary, Key said his country would like to work more closely with China on agriculture, resources, tourism, education, climate change as well as increase the level of economic and trade cooperation.

During their meeting at the Great Hall of the People in downtown Beijing, Hu and Key also exchanged views on how to revive, stabilize and bolster the world economy.

Key is to head to south China's Hainan Province for the 2009 meeting of the Bo'ao Forum for Asia (BFA) from April 17 to 19.

(Xinhua News Agency April 15, 2009)