China and Afghanistan took new steps Wednesday to further strengthen economic and trade links as new agreements were inked regarding aid, tax reduction and training.

Chinese President Hu Jintao (R) shakes hands with visiting Afghan President Hamid Karzai in Beijing, capital of China, March 24, 2010. [Fan Rujun/Xinhua]

Chinese President Hu Jintao and visiting Afghan President Hamid Karzai witnessed the signing of three documents on economic and technological cooperation, favorable tariffs for Afghan exports to China and training programs.

During his meeting with Chinese President Hu Jintao, Karzai said Afghanistan was honored to have China as a friend and neighbor.

China's economic assistance to Afghanistan can be dated back to the mid 1950s when the two countries established diplomatic links. Chinese engineers built a number of hospitals and water conservancy projects around the Central Asia country. The most well-known project is a large dam some 40 kilometers away from Kabul.

Since 2002, China has given more than 900 million yuan (130 million U.S. dollars) in aid for the rehabilitation of Afghanistan. And last year, China announced it would provide an additional 75 million U.S. dollars of aid to Afghanistan over the next five years.

In the meeting with President Hu, Karzai expressed gratefulness to China for the support and encouragement that it had given Afghanistan since the establishment of diplomatic ties, in particular the past eight years during his presidency.

Chinese President Hu Jintao (L) and visiting Afghan President Hamid Karzai review the honor guard during a welcoming ceremony held for Karzai in Beijing, capital of China, March 24, 2010. [Fan Rujun/Xinhua]

Two-way trade between the two countries has been growing rapidly in recent years, reaching 155 million U.S. dollars in 2008.

Starting from July, 2006, China has applied zero tariffs on 278 items of export products from Afghanistan.

China Metallurgical Group Corp. has invested in Aynak copper mine in Afghanistan. Implementation of this project helped create job opportunities for thousands of local people.

China and Afghanistan share a common border. Besides economic links, the two countries have expanded cooperation in other areas in recent years, including the fight against the three evil forces of terrorism, extremism and separatism.