During his meeting with Japanese Prime Minister Junichiro Koizumi, Zhu said that the two countries are important trading partners to each other and that further deepening of reciprocal co-operation would benefit both.

According to a Chinese Foreign Ministry spokesman, Koizumi told Zhu that China's economic development is not a threat to Japan.

The development of China as well as other countries that neighbor Japan is good for Japan and provides opportunities for competition for Japan, Koizumi said.

He suggested that the two countries set up a consultation mechanism about trade and economic co-operation, so as to promote the smooth development of bilateral economic ties. The proposal was well received by Zhu, the Chinese spokesman said.

In a speech Friday at the annual conference of the Boao Forum for Asia, Koizumi for the first time openly denied the theory that China could pose a threat to Japan.

"Some see the economic development of China as a threat,'' Koizumi said. "I do not. I believe its dynamic economic development presents challenges as well as opportunities for Japan.

"A rising economic tide and expansion of the market in China will stimulate competition and prove to be a tremendous opportunity for the world economy as a whole.''

Koizumi also said that China and Japan, with their different industrial structures, can strengthen their mutually complementary bilateral economic relations.

"I see the advancement of Japan-China economic relations not as a hollowing-out of Japanese industry, but as an opportunity to nurture new industries in Japan and to develop their activities in the Chinese market,'' he said. "Our integrated efforts for economic reform in both countries should advance the wheel of economic relations.''

With two-way trade volume registering at US$87.7 billion last year, China is now Japan's second largest trading partner and Japan is China's largest trading partner.

Also Friday, Zhu met his counterparts in the Republic of Korea (ROK) -- Lee Han-dong, and in Thailand -- Thaksin Shinawatra. He also met some entrepreneurs participating in the forum.

When meeting ROK Prime Minister Lee, Zhu said it is China's policy to continue developing a co-operative partnership with the ROK.

He said China is willing to push for the comprehensive development of bilateral relations in the new century.

Zhu said he hoped the two neighbors will keep up their momentum on economic ties based on the principle of co-operation.

Lee, describing the economic co-operation between the two countries as "fruitful,'' expressed the hope that they will further strengthen co-operation in information technology, communication and environmental protection.

During his meeting with Thai Prime Minister Thaksin Shinawatra, Zhu expressed his support for Thailand's efforts to set up an Asia Co-operation Dialogue (ACD).

With their own diversities, different regions in Asia are comparatively independent, Zhu said.

He also said development in Asia should start from the easiest and progress gradually on the basis of wide consensus.

He said China is willing to work with Thailand for the co-operation and prosperity of Asia.

Regarding the free trade zone between China and the Association of Southeast Asian Nations (ASEAN), Zhu said the most important thing is maintaining the momentum and starting negotiations at an earlier date.

(China Daily April 13, 2002)