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Chen made the announcement after signing the minute of the Third Sino-Syrian Joint Committee and six cooperation documents with Syrian Deputy Minister of Trade and Economy Ghassan Habash.

Syria thus becomes the 74th country that recognized China's market economy status, according to the Ministry of Commerce.

"The recognition indicated that both Syria and China would develop bilateral economic and trade relations in accordance with the World Trade Organization standards, which is bound to have a positive impact on future economic cooperation between the two countries," Chen told Xinhua.

"Syria is an important Arab country and the Chinese government attaches great importance to developing trade and economic cooperation with it," noted Chen.

Chen said both countries were satisfied with the development level of economic and trade cooperation during the last three years.

Bilateral trade volume reached nearly 1.5 billion U.S. dollars in 2006, up by about 100 percent over 2005, he said, adding that both sides hoped the volume would jump to three billion dollars within five years.

Chen also pointed out that China and the Arab countries have formed a sound economic and trade cooperation and established a mature operation mechanism.

He said there were ongoing talks between China and some Arab countries on the establishment of free trade zones as cooperation between China and the Arab countries has followed the win-win model.

Chen, heading a delegation of the Ministry of Commerce, arrived in Damascus on Sunday for a four-day official visit.