With an aim to further consolidate mutual-benefit relationship between China and the Indian Ocean island country of Madagascar, the Chinese business community decided to set up a business association in Antananarivo yesterday.

The association will work for strengthening unity and cooperation between Chinese business persons and safeguarding the rights and interests of the Chinese community in Madagascar, according to a constitution published at the preparatory meeting of the China Business Association in Madagascar.

The organization will also make efforts to strengthen exchanges between Chinese enterprises registered in Madagascar and their counterparts in China, international business groups and governmental organizations, so as to seek opportunities for investment and development for Chinese entrepreneurs, the constitution said.

The association encourages Chinese business persons to take active part in public welfare in the island and to seek mutual development with their counterparts in Madagascar.

Chinese Ambassador to Madagascar Li Shuli attended the meeting and asked the Chinese business community to further promote mutual understandings and to consolidate friendly cooperation with their Madagascan partners.

There were now golden opportunities to further develop the friendly relations between the two countries, Li told the meeting, adding that relationship between China and Madagascar was at the best since the establishment of diplomatic relations 35 years ago.

Reliable sources said two-way trade between the two countries had increased by over 20 percent and reached US$250 million in the year 2006.

Official data showed that there are over 900 registered Chinese enterprises in Madagascar.