SOFIA - The Bulgarian government on Wednesday approved a draft memorandum of understanding on economic cooperation with China's eastern municipality of Shanghai.

The Bulgarian Ministry of Economy, Energy and Tourism and the Shanghai Municipal Commission of Commerce would cooperate in organizing promotional activities to encourage mutual investment such as seminars, business meetings, business missions, investment fairs and exhibitions, Bulgarian Government Information Service said in a statement.

The two sides will encourage mutual investment activities by sharing information about the special measures and regulations, and about the opportunities for establishing joint industrial projects, joint ventures, and representative offices and branches of companies from Bulgaria and Shanghai, the statement said.

The institutions will also work to expand business contacts between Bulgaria and Shanghai, and will assist companies from Shanghai to invest in Bulgarian industrial zones, the statement added.

Shanghai, with a total population of over 23 million people, is the largest financial and economic center of China.