China is willing to cooperate with Brunei in the development of oil, gas and new energy, and to achieve "substantial progress" in jointly developing the South China Sea, President Xi Jinping said on Monday.

China will also encourage its businesses to increase investment in Brunei to enhance cooperation in infrastructure construction, as well as agriculture and fishery sectors, Xi said when meeting with Sultan of Brunei Hassanal Bolkiah.

Hassanal is in Beijing to attend the 22nd Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting on Nov. 10-11.

Xi said the two countries should increase high-level exchanges and strengthen strategic mutual trust as China-Brunei relations has been upgraded to the strategic cooperative one.

"China is willing to work with Brunei to strengthen maritime cooperation in order to achieve early and substantial progress in joint development of the South China Sea," he told Hassanal.

The two countries should also jointly work for the healthy development of China-ASEAN relations so to promote regional peace, stability and prosperity, Xi said.

Xi said China and Brunei, following the principle of mutual respect and equality, have set an example for relationship between big and small countries, featuring harmonious coexistence, mutual benefit and win-win situation.

Hassanal spoke highly of the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives put forward by President Xi and appreciated China for its contribution to regional peace and stability.

Brunei supports the agenda set for this year's APEC Economic Leaders' Meeting and is willing to work with China to promote the unity and cooperation between China and ASEAN so as to advance the regional integration process, Hassanal said.

As one of the founding countries, Brunei will actively participate in the establishment of the Asian Infrastructure Investment Bank, Hassanal added.