Ties to strengthen with gcc

Commerce and economy ministers from China and member states of the Gulf Cooperation Council have agreed to further enhance ties in the energy sector and accelerate the examination process for a free trade agreement to put trade growth on a firmer footing amid the lackluster global economic setting.

Li Jinzao, China's vice-minister of commerce, said the country is one of the world's biggest oil importers, while the GCC states are the world's largest producers of crude oil, accounting for about 20 percent of the global supply and 40 percent of proven oil reserves.

"The Chinese government is not only encouraging capable Chinese companies to invest in the infrastructure and manufacturing sectors, but also offering new technologies to build advanced oil and gas storage and transportation facilities, and petroleum engineering solutions to the member states of the GCC," Li said.

China-GCC trade reached $155 billion last year, with GCC members exporting $101 billion worth of products to China. Trade between China and the GCC mainly focuses on the oil, steel, electronic products, mechanical and textile sectors.

"By 2015, 55 percent of the energy consumed by China will come from the Gulf region, and China will overtake India to become the UAE's largest trading partner by 2015, when trade between the two countries will reach $60 billion in goods value," said Abdullah Saleh, vice-minister of economy of the United Arab Emirates.

"To a certain extent, trade between China and the UAE will be further boosted by the upcoming free trade agreement between China and the GCC," Saleh said. "This agreement is highly likely to be signed by both sides between October and December this year."

China and the GCC launched free trade agreement negotiations in 2004, with both sides reaching consensus on most areas of goods trade after four rounds of ministerial-level talks.

"As the GCC is a major oil exporter, setting up an FTA with the GCC will ensure crude oil supply for China's hunger for energy. Therefore the FTA can be regarded as China's oil guarantee for development," said Ahmed Dheeb, Oman's vice-minister of commerce and industry.

Zhong Nan