BEIJING, April 28 (Xinhua) -- Chinese Premier Wen Jiabao on Wednesday proposed greater economic and trade cooperation with neighboring Mongolia.

"We should sign important economic and trade agreements to lay a solid legal basis for bilateral cooperation," Wen said while meeting with Mongolian President Tsakhia Elbegdorj.

Wen also suggested the two nations cooperate on major industrial projects.

The premier expressed hope China and Mongolia will boost business exchanges to enhance bilateral economic cooperation.

China and Mongolia last year celebrated the 60th anniversary of the establishment of diplomatic ties.

Hailing the bilateral relationship which has become more mature and closer, Wen said China and Mongolia share important common interests like the safeguarding of northeast Asia's stability and coping with the international financial crisis.

China will work with Mongolia to increase high-level exchanges and deepen mutual trust and pragmatic cooperation to advance bilateral ties.

Echoing Wen, Elbegdorj spoke highly of the bilateral relationship.

Applauding China's support for Mongolia's social and economic progress, the president said Mongolia valued its ties with China and firmly adheres to the one-China policy.

Mongolia welcomes China taking part in its economic construction and hopes the two nations expand cooperation in transportation, mineral- and animal-products processing, and disaster prevention, Elbegdorj said.

Elbegdorj said his country will work with China to promote peace and stability in northeast Asia.

The Mongolian president extended his sympathies to the Chinese people in the quake-hit Yushu area.

Earlier Wednesday, Elbegdorj expressed his hope for closer economic and trade ties with China while attending the China-Mongolia Business Forum.

China has been Mongolia's largest trade partner for 11 years, Elbegdorj noted.

Elbegdorj is on a six-day state visit to China, his first visit to China since he took office in May 2009.

Besides Beijing, Elbegdorj will also visit Shanghai and attend the opening ceremony of the Shanghai World Expo on April 30.