China Wednesday expressed its appreciation of Malaysia's policies in braving the financial storm and tiding over economic difficulties.

Malaysia has responded to the crisis and overcome the difficulties it had caused with a cool head and a unique approach, demonstrating the wisdom and courage of the Malaysian government and people, Chinese Premier Zhu Rongji said in Kuala Lumpur Wednesday.

"As your friendly neighbor who is prepared to pull together with you in time of difficulty, we are happy to see Malaysia enjoy social stability, ethnic harmony and gradual economic recovery," Zhu said at a luncheon hosted in his honor by the National Chamber of Commerce and Industry of Malaysia.

The Chinese premier said Malaysia's experience has further testified that developing countries should formulate economic policies in light of their own national conditions and take the road of development suitable to them.

Zhu believed that the Malaysian people who are determined to get strong on their own will soon return their economy to a healthy and steady growth and create splendor again in the future.

"The Asian financial crisis has made it clear to us that today as the process of economic globalization picks up speed, how to safeguard economic security and forestall financial risks has become a pressing issue for all countries in the region," he said.

To rise to this new challenge, the Chinese premier said, it requires not only concerted and unremitting efforts by all governments but also close cooperation and active involvement by the business and financial communities of all states.

He was of the view that crisis presents opportunities as well and so long as Asian countries make courageous and concerted exploratory efforts and strengthen cooperation, Asia is bound to have a bright future.

The Chinese leader said the Asian financial crisis has also put the Chinese economy to severe tests.

"In view of the situation, the Chinese government has resolutely decided to maintain the value of RMB (Renminbi) and at the same time adopted a series of policies and measures such as increasing input in infrastructure development and upgrading the technology of enterprises so as to stimulate domestic demand and pull along national economic growth. Generally speaking, these measures have generated the intended results," he added.

Zhu said China will further implement policies and measures to stimulate domestic demand and continue to increase input in the development of infrastructure and the technological upgrading of enterprises as well as continue to readjust the economic structure, improve the quality and efficiency of economic growth and maintain a sustained and fairly rapid economic growth.

"China will unswervingly press ahead with reform and opening-up and keep to the road that suits its national conditions," he said. He added that as China and the United States signed on November 15 a bilateral agreement on China's accession to the World Trade Organization, China's WTO accession process will pick up speed and an expanded opening-up program in China will offer many more opportunities for foreign businessmen and entrepreneurs to make investment and develop market in China.

As China's economy develops further, one can expect to see ever closer economic and trade links and increasingly broader cooperation between China and Malaysia and other Asian countries, Zhu said.

The Chinese premier said that over the past 25 years, China and Malaysia have made significant progress in friendly exchanges and cooperation in various fields.

To bring into the new century a deeper, broader, more solid and closer China-Malaysia relationship represents the shared aspiration of the two governments and peoples, he said.

Zhu held the view that the Joint Statement on the Framework for Future Bilateral Cooperation that the two governments signed this year has laid out the blueprint for an all-round relationship of good-neighborliness, friendship and cooperation based on mutual trust and support between the two countries.

To build a splendid future for China-Malaysia relations, the bilateral economic relations and trade in particular, the Chinese premier said there is a need to work together with a pioneering spirit and creativity.

He expressed the hope that through the vigorous efforts of the business communities of the two countries, the mutually beneficial cooperation will scale new heights and make greater contribution to the growth of all-directional good neighborly and friendly relations and cooperation between China and Malaysia.