The Bulgarian government approved a draft memorandum Wednesday to encourage economic and trade cooperation with China's Zhejiang province.

According to the memorandum, a mechanism for exchanging economic information between Bulgaria and Zhejiang will be implemented. Both sides also will encourage business contacts and Zhejiang companies' investments in Bulgarian industrial zones.

Zhejiang is one of the most economically vibrant provinces in China.

Chinese investment in Bulgaria has been relatively small: about 20 million U.S. dollars in the production of communications equipment. However, Chinese automaker Great Wall Motor Co. is planning to build a 133-million-dollar plant in the Bulgarian city of Lovech.