A free trade deal between China and Mercosur, the South American trade bloc, was proposed on Monday by Premier Wen Jiabao.

Analysts said that the deal, if signed, will carry a number of benefits for the highly complementary economies.

"We share extensive common interests and we have great potential for further cooperation, which will increase the power of developing countries," Wen said in Buenos Aires where he met Argentine President Cristina Fernandez and held a video conference with the presidents of Brazil and Uruguay.