Prime Minister Dr Mahathir Mohamad urged the world today to cooperate with China to tap its new-found wealth rather than viewing it as a "black hole".

Mahathir, speaking at the Pacific Basin Economic Council meeting, said developing nations should seek ways to access China's large market of 1.3 billion people.

He urged countries not to be "constrained by fear that China is a black hole and that all the money goes in there and disappears."

"It is not true. It goes in there and it comes out again," he said.

"We believe that by prospering China, others will be able to tag along... we should find a way of working with China.

"(It is to) admit defeat now to say China is a black hole and let's cover it up to prevent anything from going in. This is not going to get us anywhere," the premier added.

"We have to live with the fact that there is a China there and it is going to be a very prosperous, very big and economically powerful China."