Chinese President Hu Jintao said on Saturday that China and Russia should enhance communication and cooperation in efforts to eliminate the adverse effects of the financial crisis and maintain stability in their respective financial markets.

Hu made the remarks at a bilateral meeting with Russian President Dmitry Medvedev on the sidelines of the G20 summit on Financial Markets and the Global Economy.

Noting the severity of the current financial crisis, Hu said that although countries worldwide have already adopted a series of measures to cope with it, "the situation remains grim."

The crisis is quickly spreading across the world, from developed economies to developing ones, from the virtual economy to the real economy, bringing serious impacts on economic growth and people's lives worldwide, said the Chinese president.

It has also had a considerable impact on the Chinese economy, he said. In response to the crisis, China has adopted a proactive fiscal policy and a moderately loose monetary policy in efforts to maintain steady economic growth, he said.

Medvedev agreed with Hu's views and said Russia's economy is slowing down because of the "unprecedented" crisis.

The G20 summit served as a platform for nations around the world to make concerted efforts to address the crisis and establish a new international financial system, he said.

The robust economic growth in China and Russia could better help the two nations ride out the crisis, he said, adding that Russia is ready to strengthen consultation and work with China to achieve the balanced growth of the world economy.

The two leaders also spoke highly of the smooth development of the Sino-Russian strategic partnership of cooperation.

Sino-Russian relations have maintained a good momentum of development, and mutual political trust between the two nations is also growing steadily, Hu said.

The final settlement of the border issue between China and Russia cleared away political obstacles for the sound development of bilateral ties, he added.

The two nations, Hu said, will continue to steadfastly support each other on major issues concerning their core interests, and strengthen their strategic dialogue and coordination.

The Chinese president also expressed support for the cultural event of the Year of the Russian Language in China in 2009, which he said will be an important event marking the 60th anniversary of the establishment of diplomatic ties between the two countries.

Medvedev hailed the rapid growth in Sino-Russian relations in 2008, saying bilateral cooperation has been fruitful in various fields, including in energy.

The two leaders also urged full implementation of the many agreements and consensuses China and Russia have reached in efforts to promote pragmatic cooperation between the two countries.

The United States is the first leg of President Hu's five-nation tour, which will also take him to Costa Rica, Cuba, Peru and Greece.

During his stay in Peru, he will attend the Economic Leaders' Informal Meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Lima.

(Xinhua News Agency November 16, 2008)