TIANJIN - Chinese Premier Wen Jiabao said Monday he hoped to see the relationship with Iceland move to a higher level as the two nations mark their 40th anniversary of diplomatic ties next year.

Chinese Premier Wen Jiabao (R) shakes hands with Iceland President Olafur Ragnar Grimsson at the Summer Davos forum in Tianjin, September 13, 2010. [Photo/Xinhua]

Wen made the remarks while meeting with Iceland President Olafur Ragnar Grimsson, who is in the north Chinese port city of Tianjin for the Summer Davos forum, or the World Economic Forum Annual Meeting of the New Champions 2010.

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Hailing the China-Iceland relations of equality, mutual respect and support, Wen said the joint efforts in addressing the challenges of international financial crisis showed the two nations'  solidarity and the high level of bilateral cooperation.

Wen hoped the two nations would take advantage of their economic complementarity and work together to promote the balanced and sustainable growth of bilateral trade.

He urged them to expand cooperation in the sector of geothermal energy development, and make joint efforts in polar, glacier and volcano studies to cope with climate change.

Grimsson thanked China for helping Iceland overcome the financial crisis, saying that his country regarded China as a trustworthy friend.

Iceland was ready to work with China to push forward mutually beneficial bilateral cooperation, the president said.

Convened by the Davos-based World Economic Forum (WEF), the three-day forum has attracted more than 1,400 participants from 88 countries and regions to discuss topics about the theme of  "Driving Growth through Sustainability" .