SANYA, Hainan (Agencies) Chinese President Hu Jintao made a five-point proposal Friday for further promoting the China-Pakistan strategic partnership. Hu made the proposals in talks with visiting Pakistani President Pervez Musharraf in Sanya, a scenic city on south China's island province of Hainan. Hu suggested the two countries should consolidate the political basis of their strategic partnership, maintain exchanges and cooperation in various levels between governments, legislatures, political parties and armed forces so as to ensure the consistency and stability of their strategic partnership, and strengthen communication and consultation on major issues. Hu proposed that progress of the negotiations on service trade should be accelerated, and a comprehensive free trade area should be established as early as possible. The Chinese government will continue to encourage Chinese companies to enhance cooperation with Pakistani companies in areas including finance, telecom, energy and transportation. Hu urged the two countries to strengthen cooperation in fighting terrorism and drug control, and enhance exchanges and cooperation over Beijing Olympic Games security. Hu called for enhancing cooperation and exchanges in areas of culture, education, health, sports, tourism, and between media and academic organizations. He encouraged the two countries to expand exchanges between women, young peoples and non-governmental organizations, and strengthen cooperation in human resources development and professional training. Hu also suggested to enhance multilateral cooperation with Pakistan, continue close coordination and cooperation in the United Nations, the Shanghai Cooperation Organization, the Regional Forum of the Association of the Southeast Asian Nations, and the South Asian Association for Regional Cooperation, so as to safeguard common interests of China and Pakistan, as well as those of other developing countries. Both Presidents vowed to enhance cooperation in defence, energy and trade, and hoped that these would be further strengthened with the coming into power of a new government in Pakistan. The two rounds of talks here at southernmost City of Sanya covered a wide range of issues including cooperation against extremism and terrorism. President Hu Jintao reiterated that his country would always support Pakistan in whatever manner necessary in defence or its security, to assure social progress and to support economic development in Pakistan. The two sides particularly focused on strategic Pak-China bilateral relations, agreed to introduce more projects to benefit Pakistan's economy and assure the well being of the people of Pakistan, under the joint five-year economic plan. President Hu Jintao described ties with Pakistan as "high priority relationship" and noted that over the years, substantial improvements had been made in Sino-Pak ties, Foreign Minister Shah Mehmood Qureshi told reporters after the meetings. Foreign Minister said Pakistan pointed at the acute energy shortage due to its rapidly growing economy and sought China's expert assistance and discussed cooperation in nuclear energy. Pakistan already has a 300 MW Chashma Power Plant, built with Chinese assistance, while work is underway on Chashma-II. Pakistan is seeking future 1000 MW projects to offset its energy crisis. Both the countries also identified several new areas, where they can extend cooperation through the already existing mechanism. Bilateral trade between the two countries has touched US 6.8 billion dollars. Pakistan and China signed a free trade pact in 2006 and hope to raise two-way trade to $15 billion much before the stipulated time. The Foreign Minister said there was a need for adopting "corrective mechanism" to offset the trade imbalance between Pakistan and China. He said a purchase mission from China has already visited Pakistan, while another will visit soon, to identify the Pakistani products that can find a home in China. Qureshi said the two countries have agreed to have a five-year trade and economic development plan and the projects falling in this category will be able to get concessional credit. The foreign minister said the Chinese President Hu Jintao has assured to urge the Chinese investors to identify projects under the Pakistan-China Joint Investment Company that has been working since 2007. Both the sides noting their very comprehensive trade and economic partnership also agreed to push trade further and make the Free Trade Agreement more comprehensive by including trade and services. Pakistan proposed that the two countries may improve connectivity, utilizing the existing Karakoram Highway, by adding fibre optic line, an oil and gas pipeline and a rail track linking it with Gwadar, making it the ninth wonder of the world. Pakistan and China also expressed satisfaction over the ongoing defence cooperation, especially in terms of joint productions like the JF-17 Thunder and the F22P frigates. The two sides described the meetings as "very good and positive", exhibiting commonality of views on major regional and international issues, with total understanding. "China considers Pakistan as a close neighbour, a good friend, and partner and more importantly as a good brother," President Hu Jintao said. Pakistan also extended its full support to China on the Beijing Olympics and regretted the attempts being made to tarnish China's image. He assured of the peaceful holding of torch relay in Islamabad this month. Following the round of formal talks, the two leaders also witnessed signing of two Memorandums of Understanding and an agreement. These included an MoU between the Ministries of Water and Power of the two countries to extend cooperation in managing water resources and hydel power, another on cooperation in sports and culture and the third for cooperation in the area of engineering, sciences and technology. Under the agreement a consortium of Chinese universities will help setup a modern international level university in Islamabad. President Musharraf and President Hu Jintao had over half an hour long restricted meeting, accompanied by the ministers of Foreign Affairs and Defence. Later the two sides went in for delegation-level talks that reflected convergence of views on regional and global issues. Pakistan also reiterated its support to the One-China policy. President Musharraf in his initial remarks termed Pak-China relations as "time-tested and broad-based" and added that these have permeated down to the people's level. The Chinese President described President Musharraf as an old friend, who has visited China eight times in as many years and said it was a manifestation of the strategic partnership between the two countries. President Musharraf thanked President Hu Jintao for the cordiality and warmth extended to him by the Chinese leadership. Earlier, President Musharraf, who arrived here Thursday night, was presented an impressive formal welcome ceremony at the picturesque Sanya City, in the Hainan province. With the backdrop of Yalong Bay on the South China Sea, a smart contingent of the Peoples Liberation Army, comprising the three services presented him a salute. The President reviewed the guard of honour. President Hu Jintao received President Musharraf and national anthems of the two countries were played. Ministers for Defence Ch Ahmed Mukhtar, Foreign Affairs Minister Shah Mahmood Qureshi Chairman Higher Education Commission Dr Atta ur Rehman, Deputy Chairman Planning Commission Dr Muhammad Akram Sheikh and Chairman Trade Development Authority of Pakistan assisted the President during the talks. Pakistan was the first Islamic country to recognise People's Republic of China on January 4, 1950. Diplomatic relations were established between the two countries on May 21, 1951.