China and Singapore yesterday signed a free trade agreement that will help the two countries cushion the impact of the global financial crisis, the Ministry of Commerce said.

Premier Wen Jiabao and Singaporean Prime Minister Lee Hsien Loong, who is in Beijing for the 7th Asia-Europe Meeting (ASEM7), witnessed the signing of the pact, which is the first comprehensive FTA between Beijing and another Asian country and comes after two years of negotiations.

Wen said in a meeting with Lee prior to the signing ceremony that the agreement signals "a leap forward" in bilateral relations.