China and the Cooperation Council for the Arab States of the Gulf (GCC) signed a framework agreement on economic cooperation in Beijing on Tuesday. Under the agreement, which addresses issues of cooperation in economy, trade, investment and technology, the parties will establish a joint committee on economic and trade cooperation and launch a consultation mechanism.
During his meeting with visiting GCC financial ministers and Secretary-General Abdul-Rahman Al-Atiyyah, Minister of Commerce Bo Xilai proposed beginning the first consultation on FTA in September.
Premier Wen Jiabao told the GCC delegation that China hopes to reach an FTA at the earliest possible date.
Bo noted, "An FTA will forge a more stable base for long-term cooperation and become a good example of south-south cooperation."
China-GCC trade surged from US$1.5 billion in 1991 to US$16.9 billion last year.
The GCC, made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, has become China's eighth largest trade partner, eighth largest export destination and ninth largest import source.
China-GCC cooperation in construction, energy and two-way investment has progressed rapidly, but bilateral trade is still a small proportion of the total for both partners.
Chinese garments, fabrics, electronic and telecommunication facilities and the GCC's oil, natural gas and chemical products are highly valued in each other's markets.
"The GCC members are cash-rich and we hope more GCC enterprises will invest in China, especially in hydropower, energy, mining, transport and telecommunication," Bo said. The country also seeks to enhance ties with the GCC in the service and high-technology industries as well as the labor sector.
(Xinhua News Agency July 7, 2004)
