HANGZHOU -- Chinese Vice President Li Yuanchao called on China and Africa to draw on private investment in their industrial cooperation when he addressed the fourth China-Africa People's Forum in Yiwu of east China's Zhejiang Province on Wednesday.

The city is known as the world's largest wholesale market for small consumer goods and is home to more than 3,000 African businessmen.

As China works to upgrade its industrial mix, it has spare industrial capacity to transfer overseas and its private sector has lots of money to invest, know-how and management experience, Li said.

"The main resources of these transferrable industries lie in the private sector," which is helpful in meeting Africa's dire need for foreign investment in manufacturing, agriculture, energy and resources, he said.

The vice president urged African countries to create a sound environment with rule of law, preferential policies and better infrastructure to attract Chinese investors for common development.

"China-African cooperation should direct more financial and human capital to areas that directly relate to people's livelihoods, such as poverty reduction, agriculture, public health, clean water and disaster prevention to bring the African people tangible benefits," Li said.

The first China-Africa People's Forum was held in Nairobi, Kenya, in 2011.