China and Japan should further cooperation on energy resources and environmental protection, said Vice President Zeng Qinghong on Monday.

Zeng made the remarks during a meeting with the Japanese House of Representatives Speaker Yohei Kono.

Zeng also welcomed the Japanese business circle to participate in China's local economic development process.

"We hope the Japanese and other foreign enterprises would expand the investment in China's central and western regions to promote the local economy," Zeng said.

He also encouraged the cooperation of the middle and small-sized enterprises between China and Japan.

"The Sino-Japanese economic and trade cooperation has reached an unprecedented height," Zeng said.

According to the statistics by the Chinese government, China-Japan trade volume reached US$ 207.36 billion in 2006. Japan is now China's third-largest trading partner while China has become Japan's second-largest trading partner.

"To build up a healthy and stable relationship requires us to cement the political foundation, to expand the common interest and to improve the social awareness," Zeng said.

He suggested the exchanges between the parliaments, youth and societies should be encouraged.

Kono, who is also chairman of Japan's Association for the Promotion of International Trade, said this year marks 35th anniversary of the normalization of Japan-China ties, and Japan hoped to take the chance to promote mutual understanding and friendly relations between the two countries.

Kono is visiting China at the invitation of the China Council For the Promotion of International Trade. Besides Beijing, Kono will also visit China's southwest Sichuan Province.

(Xinhua News Agency July 17 2007)