King Abdullah signs co-operation deal covering oil, natural gas and minerals in Beijing. Saudi Arabia wants to diversify its economy and ease its dependence on the US. It is looking forward to stronger ties with China.

Beijing (AsiaNews/Agencies) – During Saudi King Abdullah's visit to Beijing, Saudi Arabia and China signed a deal on energy co-operation yesterday. This will enable Beijing to secure oil and gas supplies for its power-hungry economy.

"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 Saudi Foreign Minister, Prince Saud al-Faysal bin Abdul Aziz al-Saud.

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.

The royal visit comes as China—the world's second-biggest oil consumer—scours the globe for more oil to fuel its economic transformation. At the same time, Saudi Arabia, which is the world's biggest oil supplier with the largest known reserves, is seeking to diversify its economy and ease its dependence on the US, the world's biggest oil consumer.

Four other deals were also signed, including one on economic, trade and technical co-operation, and another on avoiding dual taxation. An agreement for an urban-development loan for the western city of Aksu from the Saudi Arabian Development Bank, and a pact on vocational training were also inked.

According to Chinese Foreign Ministry spokesman Kong Quan, trade between China and Saudi Arabia has been growing rapidly in recent years. In the first 11 months last year, two-way trade reached 14.5 billion U.S. dollars, up 59 per cent year-on-year. This is "an astonishing growth" that is higher than the average 23 per cent growth of China's foreign trade for the same period, said Kong.

China imported 20.01 million tons of crude oil from Saudi Arabia in the 11 months, or about 450,000 barrels daily, which accounts for 14 per cent of China's oil import. Saudi Arabia is China's biggest oil supplier.

This is the first visit by a Saudi monarch in China since diplomatic relations were re-established in 1990. It is also King Abdullah's first foreign trip since ascending the throne.

"This will write a new chapter of friendly co-operation between China and Saudi Arabia in the new century," said Chinese President Hu Jintao, who called the king "a respected and familiar old friend". King Abdullah said he also looked forward to stronger ties.

King Abdullah is scheduled to meet Premier Wen Jiabao and National People's Congress chairman Wu Bangguo today. 

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