An economic and trade forum emphasizing diversified cooperation between China and countries throughout the Arab region kicked off on Wednesday in Yinchuan City, Ningxia Hui Autonomous Region.

China’s Vice Premier Li Keqiang, and foreign leaders including President of Central Africa Francois Bozize, President of Micronesia Emanuel Mori and Prime Minister of Papua New Guinea Michael Thomas Somare attended the opening ceremony.

Centuries ago, China and the Arab world were connected by the Silk Road, and their relationship has been greatly improved because of closer economic and trade ties over the past years.

Li said the Chinese government has recently approved the establishment of a new economic inland pilot zone in Ningxia and a comprehensive bonded area in its capital Yinchuan, through which the Silk Road once ran.

The pilot zone and the bonded area are aimed at boosting the country's domestic demand and deepening the opening-up of China's western inland areas, Li said.

"While further opening the coastal regions to the east, China will at the same time also continue opening up to the west. These special economic zones, pilot zones and key border ports are being established to serve as vanguard," he explained.

Their establishment also demonstrates China's policies of developing its western areas as well as opening the nation’s west. This will help further expand the country's opening-up range to developed countries as well as developing countries, he said.

"China is a stable market for many products from the Arab countries. The Chinese side is encouraging its companies to engage in the manufacturing sector and infrastructure construction in Arab countries," according to Li.

The United Arab Emirates (UAE) has been chosen as the guest country of honor. A UAE national pavilion has been set up at the forum, and a friendly soccer match between China and the UAE took place on Wednesday evening.

China has good diplomatic relations with Arab countries. Close ties between the two sides have covered not only economic trade and politics, but also culture, environmental protection, and personnel exchanges, said UAE Foreign Trade Minister Sheikha Lubna bint Khalid bin Sultan Al Qasimi.

The countries are working together in diversified fields, based on mutual benefit and respect, she added.

The League of Arab States has become China's seventh-largest trading partner. Trade between China and the member countries went up 34.7 percent, to US$ 195.9 billion, last year.

"At the current rate, we believe that the number will rise to 300 billion US dollars within two years," she said.

The 300-billion-U.S.-dollar trade target was determined this May, when the foreign ministers from China and Arab countries gathered in Hammamet, Tunisia, to attend the China-Arab Cooperation Forum.

Qiu Hong, China's assistant minister of commerce, said investment fields between the two sides have expanded from oil and light to mechanical manufacturing and auto assembly. Cooperation in service sectors such as finance, tourism and aviation has also proved beneficial to all.

Both developing economies, China and the Arab nations are now in a critical period in their economic and social development, and face a great task to improve the people's well-being.

"Both parties should strengthen cooperation to fight exterior risks and achieve a win-win situation with mutual benefit," said Qiu.