Chinese Premier Li Keqiang said Monday in Bucharest that his country has reached an agreement with Hungary and Serbia to jointly build a railway between the latter two countries.

Speaking at a joint press conference with his Hungarian and Serbian counterparts, Viktor Orban and Ivica Dacic, Li hailed the project as a landmark in cooperation between China and Central and Eastern European (CEE) countries.

The three sides, added the Chinese premier, will set up working groups immediately and advance the project with high quality as rapidly as possible for the benefit of passengers and cargo transporters.

"China has made rapid progress in railway construction since its reform and opening-up," said Li, noting that the country now has the world's second-largest railway network with the longest mileage of high-speed railway.

The needs of CEE countries for modern transportation and the technological, equipment, financial and other advantages of China in the area indicate that the project will surely benefit all parties involved, Li said.

The Chinese premier highlighted Chinese equipment as a new global trend due to its high quality with low prices.

In its cooperation with emerging markets in particular, the Chinese premier said, Chinese equipment will not only improve their infrastructure, but also reduce its own over-capacity and improve product and services quality.

Such win-win cooperation will benefit the concerned sides as well as the European Union and the world, Li said.

Li arrived here Monday for an official visit to Romania and a summit with leaders of Central and Eastern European (CEE) countries.