On November 18, 2005, Chinese President Hu Jintao met in the hotel where he stayed in Pusan with his Chilean counterpart Ricardo Lagos. Both sides held cordial and friendly talks and jointly attended the signing ceremony of the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Chile held later.

Hu indicated to Lagos that the free trade zone established between both sides is the first one established between China and a Latin American country and it is not only conducive to pushing for in-depth development of bilateral political, economic and trade relations, but also sets up an example for pushing for South-South cooperation. Lagos expressed full agreement with these comments. Both heads of state decided upon consultation to instruct related departments of both sides to implement the agreement as soon as possible so that both peoples can benefit from it at an early date.

Hu pointed out that in recent years, bilateral relations have witnessed new progress with frequent exchange of high-level visits and strengthened mutual political trust. Chile is the first Latin American country to acknowledge China's full market economy status, which has strongly promoted rapid growth of bilateral trade. Both sides have also expanded cooperation in the area of investment and continued to maintain sound coordination and cooperation in regional and international affairs.

Hu emphasized that China and Chile, as important countries in their respective regions, enjoy huge potential and broad prospect in strengthening bilateral relations. This year marks the 35th anniversary of the establishment of diplomatic ties and both sides should take this as an opportunity to enhance cooperation in the areas of politics, economy, trade and culture and push for development of bilateral comprehensive cooperative partnership.

Lagos said that the achievements of President Hu's visit to Chile last year have consolidated bilateral traditional friendship, expanded bilateral cooperation area and strongly pushed for development of bilateral relations. Chile would like to work with China to make full use of the opportunity offered by the 35th anniversary of the establishment of diplomatic ties, summarize past experience and open a new and wonderful future.

Hu also exchanged views with Lagos on international issues. Both of them indicated that since both sides share identical views and proposals on many major international and regional issues, they should strengthen cooperation in multilateral institutions.

Later, the two heads of state jointly attended the signing ceremony of the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Chile and personally exchanged the texts of the Agreement.