Beijing: China on March 5 said it would pursue an "independent foreign policy of peace", resist hegemonism, forge good-neighbourly relations with its neighbours and play a constructive role in the fight against terrorism.

"We will unswervingly pursue an independent foreign policy of peace," Premier Zhu Rongji said while expounding China's foreign policy in his fifth and final work report to the National People's Congress, China's Parliament.

Zhu said China, whose international standing has risen "noticeably", will continue to cultivate friendly ties with its neighbours, increase regional co-operation and bring its exchanges with neighbouring countries to a new high.

China will continue to consolidate and strengthen its solidarity and co-operation with other developing countries and support them in their efforts to defend their legitimate rights and interests, Zhu said.

On China's relations with developed countries, he said the government would continue to improve and develop its relations with them on the basis of the five principles of peaceful co-existence, broaden the area of common interests and appropriately iron out differences.

Commenting on the current world situation, he noted that peace and development remain the themes of the present era, but world multi-polarisation and economic globalisation are making headway amid twists and turns.

"Although we face an international environment in which opportunities continue to outweigh challenges, uncertainties have increased in the international situation," Zhu said in an indirect reference to the Iraq and North Korean nuke issue.

PTI