Beijing: China hopes to work with Bhutan for early establishment of diplomatic relations and a solution to boundary issues, Chinese Vice President Li Yuanchao said on Thursday.

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Li made the comment during a meeting with Bhutan's Foreign Minister Damcho Dorji in China for the 24th round of boundary talks.

"China and Bhutan have yet to establish diplomatic ties but have always respected each other and treated each other as equals," Xinhua news agency quoted Li as saying.

Dorji said Bhutan expects to strengthen cooperation with China in various fields and looks forward to settling the boundary issue at an early date.