Earlier，China and Peru concluded talks on a free trade agreement, upgraded bilateral ties to a strategic partnership，and signed 11 cooperative documents on the economy, technology, health, and other areas following talks between Presidents of the two countries.

The two presidents also witnessed the opening of three Confucius Institutes in Peruvian universities.

Presdient Hu Jintao says the establishment of a strategic partnership begins a new period in bilateral relations.

"This marks our relationship heading into a new phase. We are fully confident of the prospect, and we believe through our joint efforts, Sino-Peruvian ties will enjoy a better future."

Hu Jintao also expressed deep gratitude to the Peruvian government and people in helping China rebuild earthquake-stricken Sichuan province. In the aftermath of the devastating May 12 earthquake, the Peruvian government passed a supreme ordinance setting May 19 as a national mourning day for Chinese earthquake victims.

President Alan Garcia spoke highly of China's economic achievements, saying that China's development brings new hope for the world.

"Peru is China's most loyal friend and partner. We support China's development and respect its willingness to foster good relations with other countries. The basis for our friendship and partnership is always respecting territorial integrity and seeking maximun benefit for people all over the world."

The new free trade pact is China's second in Latin America, following an accord with Chile in 2005. Trade between China and Peru has more than doubled from 2 billion dollars in 2004 to 5.5 billion dollars last year.