China's Ambassador to Uruguay Yan Banghua on Tuesday underscored the importance of strong ties with the South American country.

Since China and Uruguay established diplomatic relations in 1988, mutual understanding between the two peoples has deepened and bilateral ties have been strengthened, Yan said at a ceremony held to mark the 64th anniversary of the founding of the People's Republic of China.

China continues to be Uruguay's "largest trading partner," Yan said, adding that two-way trade topped 3 billion US dollars in the first eight months of this year.

"And there is still enormous potential to explore for practical cooperation in various areas," he said.

Present at the event were Uruguayan political figures such as Agriculture Minister Tabare Aguerre and former President Julio Maria Sanguinetti.