Beijing seeks to cement relations with Singapore(2)

President Xi Jinping also met Lee on Monday and said the biggest challenge facing East Asia is how to cope with the impact brought by the international financial crisis and maintaining a robust momentum of growth.

"We should focus most of our attention on deepening cooperation and common development in the effort to create a peaceful, stable regional situation," Xi said.

Singapore believes China's development means a great chance for Singapore, ASEAN and the region, and Singapore is willing to play a positive role in the process, Lee told Xi.

Beijing has sent a clear signal that the focus of the China-ASEAN relationship lies in economic cooperation rather than the South China Sea issue, which has been highlighted by some members of ASEAN in recent years, said Jia.

Landmark bilateral projects include the China-Singapore Suzhou Industrial Park, Sino-Singapore Tianjin Eco-city and Sino-Singapore Guangzhou Knowledge City.

China became Singapore's third-largest trade partner last year. As the only ASEAN member that has signed a free trade agreement with China, Singapore is a key partner of China within the organization.

Lee told Chinese leaders that Singapore is willing to tap into the full potential of economic cooperation, adding that it will focus on sustainable development and economic transformation.

Lee also highlighted advancing financial cooperation, as clearing services for the Chinese currency are picking up momentum in Singapore.

The Industrial and Commercial Bank of China kicked off its yuan-clearing services in Singapore in May, marking a milestone in Singapore's development as an offshore yuan hub.

Zhang Xiaokang, former Chinese ambassador to Singapore, said Lee's visit is aimed at upgrading the free trade zone in the future .

Lee, on his fourth visit to China, is scheduled to visit Urumqi, Shihezi and Kashgar for an update on local developments in the Xinjiang Uygur autonomous region, according to the prime minister's office. He will also visit Liaoning province.

Song Yinghui, a researcher on Southeast Asian studies at the China Institutes of Contemporary International Relations, said the development of the China-Singapore relationship is producing pragmatic significance against the backdrop of the sluggish world economy.

"Lee's visit to western China symbolizes the expansion of bilateral cooperation from the east part of China to the west," Song said.