Hu made the proposal when meeting with Canadian Prime Minister Paul Martin on the sidelines of the 12th Economic Leaders' Meeting of the Asia-Pacific Economic Cooperation (APEC) in the Chilean capital, according to a press release issued by the Chinese delegation.

Both China and Canada are members of the forum, which controls nearly half of world trade.

Hu said the two countries possess great potentials in cooperation and share identical or similar views on many international and regional issues.

The Chinese president also put forward the following four-pointproposal on further promoting bilateral ties:

-- Strengthening contacts at all levels, increasingly deepening mutual understanding and trust, so as to provide sound political guarantees for developing bilateral ties;

-- Fully making use of their complementary advantages to expand and deepen their friendship and cooperation;

-- Strengthening the consultation and coordination in major international and regional issues, jointly maintaining the stability and prosperity of the Asia-Pacific region;

-- Taking the interests of bilateral ties into account, properly treating and addressing bilateral existing disputes.

The Canadian prime minister said Canada fully agree to China's proposals and is ready to expand bilateral cooperation in economicand trade, investment, energy, financial service, education and tourism.

Martin reiterated Canada's One-China policy, adding that Ottawa will continue to adhere to such stance without any change. Hu appreciated Martin's remarks.

Hu also briefed the Canadian prime minister on China's latest economic developments.

The Chinese president arrived in the Chilean capital for a state visit and attending the 12th APEC Economic Leaders' Meeting.