China values friendly relations and cooperation with all countries in South Asia region, Chinese State Councilor Tang Jiaxuan said in Kathmandu Friday.

"We value our friendly relations and cooperation with all countries in the region and are working to advance cooperation and promote common prosperity with them on the basis of the Five Principles of Peaceful Coexistence," Tang said at the joint reception given by the China Study Center of Nepal and the Chinese Embassy in Nepal.

China sincerely hopes to see political stability, social harmony and economic prosperity in South Asia, and amicable coexistence, strong cooperation and common development among South Asian countries, Tang said.

"We support the regional cooperation process, and are ready to participate in this process at both the regional and sub-regional level. We welcome the recent South Asia Association for Regional Cooperation (SAARC) summit decision to accept China as an observer to the organization," Tang said.

China is ready to establish formal ties with SAARC at an early date, and cooperate with it on the basis of equality and mutual benefit, thus contribute to the regional cooperation process and common development, he added.

Tang will meet with Nepali King Gyanendra on Friday afternoon. Tang arrived in Kathmandu Thursday on a three-day official visit to Nepal at the invitation of Vice-Chairman of the Council of Ministers, Kirti Nidhi Bista.

(Xinhua News Agency March 18, 2006)