China and Mexico announced the establishment of a strategic dialogue mechanism on Friday during talks between Chinese President Hu Jintao and his Mexican counterpart Felipe Calderon Hinojosa.

Chinese President Hu Jintao (R) shakes hands with Mexican President Felipe Calderon Hinojosa during the welcoming ceremony Hu hosts for him at the Great Hall of the People in Beijing, capital of China, July 11, 2008.

They agreed to strengthen strategic dialogue and expand reciprocal cooperation to further stable and healthy long-term relations.

The two heads of states have just met in Sapporo of Japan when attending the Group of Eight summit's outreach session.

During the talks, Hu put forward a four-point proposal to cement Sino-Mexican relations:

--Strengthening political dialogue, maintaining high-level contact, and realizing the action plan from 2006 to 2010 to promote strategic partnership;

--Boosting a win-win economic cooperation. The Chinese government encourages its enterprises to invest in Mexico's infrastructure including ports, roads, and hydroelectric stations, and supports cooperation on mining, telecommunication, agriculture and the fishing industry;

--Pushing personnel exchanges in the fields of culture, education, traditional medicine and social development;

--Promoting multilateral cooperation and consultation on major international affairs so as to safeguard the legal rights of developing countries.

Hu expressed appreciation for the adherence of Mexico to the one-China policy concerning the Taiwan and Tibet issues.

Chinese President Hu Jintao (2nd L) holds talks with Mexican President Felipe Calderon Hinojosa (4th R) at the Great Hall of the People in Beijing, capital of China, July 11, 2008.

Calderon arrived in the business hub of Shanghai on Wednesday to start his four-day visit to China. He came to Beijing on Thursday night.