Chinese Prime Minister Wen Jiabao (L) and German Chancellor Angela Merkel give a joint press conference in Berlin, Sept. 14. -Xinhua

Visiting Chinese Premier Wen Jiabao and his German counterpart Angela Merkel on Thursday applauded bilateral relations, describing the ties as "close and good."

The remarks were made at a joint press conference following a meeting and signing of a series of cooperation agreements by the two leaders.

"This visit shows again that the two nations have close and good relations," said Merkel, who paid a visit to China in May.

She said she believed the relations which were already good could be further improved as the two countries were to celebrate the 35th anniversary of the establishment of the formal diplomatic relationship in 2007.

Wen, who arrived here earlier on Thursday, made a similar statement.

On the Iranian nuclear issue, Wen reaffirmed it should be resolved peacefully and urged negotiations to be resumed as soon as possible.

"Sanctions do not lead to this goal," he said. "Therefore we must be careful with such measures."

On Thursday, the two signed eight documents for further cooperation in economy, science, technology and culture.

Under one agreement signed by Chinese Ambassador to Germany Ma Canrong and German State Secretary Gerd Hoofe for the Federal Ministry of Family Affairs, Senior Citizens, Women and Youth, 400 German youths will visit China next year.

The two sides also signed a framework agreement for setting up a Confucius Institute in the German city of Hannover.

Wen, who is on a two-day visit to Germany, also held talks with German President Horst Koehler.