China on Monday pledged an investment of $500 million for infrastructure development and resource building in India and agreed to a plan of action for economic cooperation between the two countries.

This was stated by the External Affairs Minister Yashwant Sinha after hour-long talks between Prime Minister Atal Bihari Vajpayee and his Chinese counterpart Wen Jiabao at the Great Hall of the People in Beijing.

Sinha told reporters that the Chinese side sought cooperation in the area of public finance and the need for setting up a mechanism for a dialogue in this regard.

The two sides also signed nine accords, including those on simplifying visa procedures, enhancing cooperation on renewable energy and increasing contacts in the field of law and justice.

Sinha said that the Chinese Premier made eight significant points to enhance ties between the two countries that included mutual understanding and trust and greater people to people contact.

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