On June 16, 2006, Chinese President Hu Jintao met with his Iranian counterpart Mahmud Ahmadinejad in Xi Jiao Guesthouse Shanghai.

Hu said that both China and Iran are developing nations and the friendly exchanges between both peoples go back to ancient times. Both sides share many consensuses in international affairs. In recent years, both sides have conducted frequent exchanges with bilateral trade volume increased by a large margin year after year. Both sides have conducted fruitful cooperation in the economic and technological areas and maintained close consultation and coordination on the UN reform, human rights and other issues.

Hu pointed out that the Chinese government attaches great importance to developing friendly cooperative relations with Iran. It is hoped that both sides will take the 35th anniversary of the establishment of diplomatic ties as an opportunity and make joint efforts to expand bilateral cooperation. He put forward suggestions in the following three aspects. First, political consultation should be strengthened to consolidate traditional friendship and continue all forms of communication and contact at various levels. Second, economic cooperation should be deepened to realize mutual benefits, maintain sound momentum of rapid trade growth and actively cultivate new growth points for bilateral economic cooperation. Third, civilization dialogue should be advanced to keep closer humanities exchanges, commit to mutual respect, exchange and common development between different civilizations and encourage enhanced friendly exchanges between both peoples.

Ahmadinejad said that both countries share a time-honored history of friendly exchanges. To strengthen traditional friendship between both peoples and bilateral cooperation in all areas conforms to the interest of both countries and their people, but also is conducive to regional and world peace and stability. Ahmadinejad agreed with Hu's proposals on developing bilateral relations. He said that there are still many bilateral cooperation areas yet to be expanded and Iran would like to deepen cooperation with China in the fields of energy, transportation, communications, electric power and shipbuilding and at the same time strengthen cultural and sports exchanges, civilization dialogue and mutual understanding between both peoples.

With regard to the Iranian nuclear issue, Hu noted that China understands Iran's concern over its right to peaceful use of nuclear power, upholds the international non-proliferation system and insists the Iranian nuclear issue should be settled properly through talks. At present, the critical point in the Iranian nuclear issue is to build mutual trust between Iran and the international community. A package of incentives raised by China, Russia, the United States and Europe has provided a new opportunity for the settlement of the issue. It is hoped that the Iranian side will earnestly study and actively respond to these incentives to seek an earlier resumption of the nuclear talks. The Chinese side is willing to maintain close communication with Iran and all other parties concerned and play a constructive role in seeking a proper solution to the Iranian nuclear issue

Ahmadinejad said his country is willing to maintain peace and stability in the region and the world at large. All the Iranian nuclear programs are peaceful and Iran does not need, nor does it seek, to develop nuclear weapons. Iran is willing to solve the nuclear issue peacefully through consultation. The EU's proposal is better than before and has provided new opportunities for resumption of talks. The Iranian side is studying the proposal and will respond in the near future.

State Councilor Tang Jiaxuan attended the meeting.