Trade between China and Pacific island countries could exceed 2 billion U.S. dollars this year and 3 billion U.S. dollars in 2010, Commerce Minister Chen Deming said on Sunday.

Chen made the remarks at the Investment, Trade and Tourism Ministerial Conference of the China-Pacific Island Countries Economic Development and Cooperation Forum.

"China and the Pacific island countries have enhanced their relationship and enlarged their cooperation. Direct investments from Chinese enterprises to the latter topped three billion U.S. dollars," said Chen.

China will provide more favorable import tax policies for the Pacific island countries, he said

Twenty officials from 11 Pacific island countries attended the forum, which is held alternately in China and a Pacific island country. The first forum was held in Nadi, Fiji in April 2006.