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China and the Cooperation Council for the Arab States of the Gulf (GCC) signed a framework agreement on economic cooperation in Beijing Tuesday, which will start talks on establishing a free trade area.
According to the bilateral framework agreement on cooperation in economy, trade, investment and technology, the two sides 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-attiyah, Chinese Minister of Commerce Bo Xilai proposed to begin the first consultation on FTA in September.
Chinese Premier Wen Jiabao told the GCC delegation that China hopes to reach a FTA agreement at an earlier possible date.
"Founding of such FTA will forge a more stable base for long-term cooperation and become a good example of South-South cooperation," Bo said.
China-GCC trade surged from US$1.5 billion in 1991 to US$16.9 billion last year, expanded by 10 times, according to Chinese statistics.
The GCC, involving 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 worldwide.
China-GCC cooperation in construction, energy and two-way investment witnessed great progress but bilateral trade volume is still small compared with each side's total trade volume.
Chinese garments, fabrics, electronic and telecommunication facilities and GCC's oil and natural gas and chemical products are of great need in each other's market.
"However, the GCC members are rich in fund and we hope more GCC enterprises to invest in China, especially in hydropower, energy and mining, transport and telecommunication," Bo said.
China is also willing to enhance cooperation with GCC in service trade, high-tech and labor sector, Bo added.
(Xinhua News Agency July 7, 2004)
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