Both China and Portugal boast ancient civilizations and have made great contributions to human progress, Hu said during a meeting here with Silva, noting that the smooth settlement of the Macao issue has set an example for other nations to tackle outstanding historical disputes.

The two countries suffer no conflict of fundamental interests, their peoples cherish friendly feelings toward each other, and their relations have been growing steadily, he added.

Development of bilateral ties since Beijing and Lisbon established diplomatic relations 31 years ago has demonstrated that the two sides should treat their relationship from a strategic and long-term perspective and stick firmly to the right direction for its further advancement, Hu said.

Both countries should also understand and support each other's major concerns and enhance mutual political trust, while further expanding practical cooperation in various fields on the basis of mutual benefit and win-win progress to consolidate the foundation of their relations, he added.

The Chinese side, Hu stressed, appreciates Portugal's adherence to the one China policy and its efforts to promote relations between China and the European Union (EU).

Silva, for his part, welcomed Hu's visit, and hailed the time-honored ties between Portugal and China, which he said were based on mutual respect.

The successful settlement of the Macao issue has created favorable environment for Macao's social and economic development, he said.