BEIJING, 24 January 2006 — Chinese President Hu Jintao yesterday gave a red carpet welcome to Custodian of the Two Holy Mosques King Abdullah at the Great Hall of the People and said the royal visit would open a new chapter in Sino-Saudi relations.
The summit in Beijing saw the signing of five agreements, including a landmark pact for expanding cooperation in oil, natural gas and minerals. Both sides said the accords would usher in a new era of closer economic ties.
Abdullah and Hu oversaw the signing of the agreements, which covered cooperation in economic, trade and technical areas. Agreements were also signed to “avoid double taxation” as well as for a Saudi loan to improve infrastructure in the city of Aksu in China’s oil-rich Xinjiang region.
Neither side immediately provided further details of the agreements, although Foreign Minister Prince Saud Al-Faisal spelt out before the signing ceremonies the main interest of both nations. “China is one of the most important markets for oil and Saudi oil is one of the most important sources of energy for China,” said the prince who is accompanying the king.
Prince Saud said the energy deal would set the framework for specific energy investments, but agreements on the projects would have to be signed between the two countries’ oil companies. He indicated specific agreements would soon be signed. Chinese Foreign Minister Li Zhaoxing said the agreements would be implemented shortly.
“There is a great deal of understanding between the two countries on all issues including Middle East, Iraq and the Iranian nuclear program,” he said. Li said Abdullah’s visit coincided with the beginning of both the Hijri and Chinese new years. President Hu has accepted an invitation from the king to visit Saudi Arabia, he added.
King Abdullah is scheduled to leave Beijing today for New Delhi, where he will be the chief guest at India’s Republic Day celebrations on Thursday. He is the first Saudi king to visit India in 50 years. He will visit Malaysia from Jan. 29 and Pakistan from Feb. 1 on the final legs of his tour. A large group of prominent Saudi businessmen is traveling with him.
The visit by the Saudi king comes when China, the world’s second biggest oil consumer, is scouring the globe for more oil to fuel its unprecedented economic growth and transformation. At the same time, Saudi Arabia, the world’s biggest oil supplier with the largest known reserves, is seeking to diversify its economy.
At the welcoming ceremony, Hu said the fact that King Abdullah had chosen China as the destination of his first official trip outside the Middle East since his accession to the throne had been noted and welcomed in Beijing.
“This will write a new chapter of friendly cooperation between China and Saudi Arabia in a new century,” Hu said, calling the king “a respected and familiar old friend” of China. “You are the first Saudi king to come to China; this visit is also your first overseas one since you became king, and China is the first stop on this (four-nation) trip,” Hu told King Abdullah before the leaders began their private talks.
“These three firsts show fully that your majesty places great importance on developing relations between our two countries,” he said. President Hu spoke warmly of King Abdullah’s efforts in promoting Saudi-Chinese relations.
King Abdullah said he looked forward to stronger bilateral ties. “What pleases us greatly is that since our two countries established diplomatic relations in 1990, they have had fruitful cooperation in many fields,” the king said. “We hope this cooperation will increase even more in the future,” he added.
Saudi Arabia was proud of its strong relations with Beijing, the king said and affirmed the Kingdom’s support for a One-China policy. He hoped that the summit talks would arrive at a common vision on major international issues, including Middle East peace.
The Saudi Press Agency said King Abdullah and President Hu later discussed major regional and international issues, most importantly Palestine and Iraq. The two leaders also explored ways of strengthening bilateral ties, the agency added.
The agreement on “cooperation in oil, natural gas and minerals” was signed by Petroleum and Mineral Resources Minister Ali Al-Naimi and Ma Kai, head of China’s State Development and Reform Commission.
Energy analysts said the agreement was the first between the two governments on overall cooperation in the field of energy. The two countries have previously signed specific deals in areas such as building oil refineries and drilling.
Finance Minister Dr. Ibrahim Al-Assaf signed three agreements. The agreements relate to double taxation; the Saudi-Chinese joint economic commission; and the loan for infrastructure projects in Aksu. Labor Minister Dr. Ghazi Al-Gosaibi signed an accord on cooperation in vocational training.
Analysts said King Abdullah’s choice of China as the first country of his Asian tour, which also includes India, Malaysia and Pakistan, was strategically sound.
“China has the fastest growing market and Saudi Arabia has the right product to sell,” said a Hong Kong-based oil analyst. Shi Yinhong, an international relations professor at People’s University in Beijing, said China had “a very focused interest” in Saudi Arabia. “China wants secure sources of oil,” Shi said.
China’s oil demand has been increasing by about 15 percent annually. The Asian giant imported a record 130 million tons of crude last year, up 3.3 percent from 2004, after growth of more than 30 percent a year earlier.
Oil imports from Saudi Arabia have already risen from 8.8 million tons in 2001 to more than 20 million tons last year, according to published official figures.
Among other energy deals already in place, China’s Sinopec is drilling for gas in the Saudi desert and building a refinery with Saudi Aramco in China’s Fujian province. Aramco has also begun engineering work with Sinopec on a second refinery in China’s Qingdao city.
Chinese firms won bids for construction contracts valued at several billion dollars in Saudi Arabia last year; the contracts include cement production, telecommunications, infrastructure and other sectors.
