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BIZCHINA / Top Biz News

Energy, trade deals inked
(AFP/chinadaily.com.cn)
Updated: 2006-04-23 09:27

The project requires Beijing's green light, and Hu's visit to the headquarters of SABIC, which exports two billion dollars worth of petrochemical products to China annually, was seen as a sign of his interest in the venture.

The Chinese leader was also due to meet Saudi businessmen and confer separately with billionaire entrepreneur Prince Alwaleed bin Talal before flying to the oil-rich Eastern Province on Sunday to meet Aramco officials in Dhahran.

China's commerce ministry said the trade volume between the two countries hit 2.7 billion dollars during the first two months of 2006, a 43 percent rise on the same period last year.

Saudi exports to Beijing were worth 2.21 billion dollars, according to the Chinese Xinhua news agency.

The kingdom exported some 22.18 million tons of oil to China last year, becoming its biggest crude supplier.

King Abdullah reached five economic deals, including an energy agreement, during his January trip to China, which was part of an Asian tour underlining Riyadh's quest to expand links with Asia.

While Beijing needs energy to feed its growing economy, Riyadh, which has traditionally had strong Western ties, is seeking to secure more markets for its oil and broaden its sources of technology imports as it opens up its economy following accession to the World Trade Organization, analysts say.

Hu's visit comes at a time when oil prices have shot up to record prices of more than 75 dollars a barrel.

Hu also met Abdulrahman al-Attiyah, secretary general of the six-nation Gulf Cooperation Council with which China is negotiating a free trade agreement.

"We hope to sign the FTA by year's end," Attiyah said after the talks.

On Sunday, Hu is to give a speech at the Shura Council, becoming only the second foreign leader to do so after French President Jacques Chirac, who addressed the appointed advisory body in March.

Hu is due to leave for Morocco on Monday and continue his tour in Africa with stops in Nigeria and Kenya.


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