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Panama and China said they hoped to reach a mutually beneficial bilateral free trade agreement (FTA), after launching negotiations here on Monday. 

China's Ambassador to Panama Wei Qiang told Xinhua that in negotiations of this kind, the key words are "mutual benefit." 

The two countries aim to "negotiate a modern, ample, comprehensive and high-level FTA" that reaffirms China's interest in Panama as a Latin American gateway, given its role as a trade and distribution hub, said Wei. 

"For the Chinese government, the guiding principle for negotiations is to develop and consolidate bilateral and international ties, to have mutually beneficial cooperation," said Wei. 

"Nothing is beneficial when it is sustainable only for one side," he said. 

Chinese companies have been operating in Panama for years, and their number is due to increase as the newly established ties between the two countries have spurred bilateral business and investment, Wei said. 

The Panamanian economy "is very strong in the finance and services sectors, for which China can offer an attractive market for greater exchanges between the two," he said. 

"Panama holds numerous advantages for China, and China in turn represents numerous opportunities for Panama," Panamanian Minister of Commerce Augusto Arosemena told Xinhua during a break in a closed-door meeting held at a hotel close to the offices of the Panama Canal Authority. 

The first round of talks, set to continue through Friday, is centered on outlining the main areas of the trade deal, said Alberto Aleman, head of the Panamanian negotiating team. 

Leading the Chinese delegation is Zhang Shaogang, director of the Department of International Trade and Economic Affairs at China's Ministry of Commerce.