Trade deal sought with Arab states
Hong Kong Standard
Trade deal sought with Arab states
China wants closer ties with Saudi Arabia and other Arab states, and is working toward a free-trade agreement with countries in the region, according to Premier Wen Jiabao.
Wednesday, January 25, 2006
China wants closer ties with Saudi Arabia and other Arab states, and is working toward a free-trade agreement with countries in the region, according to Premier Wen Jiabao.
Wen was speaking Tuesday during a meeting with Saudi King Abdullah, who was making his first overseas trip since taking the throne.
The trip is also the first to China by a Saudi ruler since the two countries established diplomatic relations in 1990.
It also comes as China aggressively courts the world’s major oil suppliers as it seeks new oil and gas deposits to fuel its power-hungry economy.
"As both China and Saudi Arabia witness rapid economic growth, the two sides should seize the opportunity to expand cooperation and achieve common development," Wen said, according to Xinhua News Agency.
Wen called for greater two-way investment in energy, trade and telecommunication sectors.
He also said China would push for a free-trade agreement to be signed as soon as possible with the Gulf Cooperation Council, which groups Saudi Arabia, Oman, the United Arab Emirates, Kuwait, Qatar and Bahrain.
China, the world’s No2 oil consumer, has been aggressively seeking to strengthen relationships with major oil suppliers as it grows more heavily reliant on oil imports. Saudi Arabia accounts for about 17 percent of China’s imported oil.
The two countries signed an agreement on energy cooperation, covering oil, natural gas and minerals, during the king’s visit. No financial or other details of the pact have been released.
Abdullah also met President Hu Jintao and National People’s Congress chairman Wu Bangguo before departing Tuesday. The king told Wu Saudi Arabia considered China a "truly friendly country" and hoped their ties would become "better and better."
Analysts said the energy deal and the visit heralded the beginning of a much closer partnership between the two nations.
"China and Saudi Arabia are becoming very close," said Morgan Stanley analyst Andy Xie in Hong Kong. "Saudi Arabia needs to diversify [its oil customers] from the United States [the biggest oil consumer] and China needs a reliable energy partner."
ASSOCIATED PRESS, AGENCE FRANCE-PRESSE
