Venezuelan President Hugo Chavez arrived in Beijing late last
night for his fourth visit to China, aiming to forge closer energy
and economic ties.
Chavez's visit is seen mostly in economic terms as he is
scheduled to meet a number of Chinese entrepreneurs today and is
expected to sign a deal to increase Venezuela's oil deliveries to
China after talks with President Hu Jintao tomorrow.
The two countries are also expected to cement their relationship
by signing a series of financial, technological and education
exchange agreements.
The visiting president will also meet with parliamentary leader
Wu Bangguo and Premier Wen Jiabao Friday and then fly to east
China's Shandong Province.
His Beijing tour will also include a visit to facilities where
initial work is being done on a communications satellite for
Venezuela.
Venezuela last year signed a deal with China for the satellite,
which is expected to be put into orbit by 2008.
Analysts say the trip is part of Chavez's push to disengage
economic dependency on the US. It is reported that Chavez will sign
contracts with China to build 18 tankers to haul more crude oil to
Asia and 12 drilling rigs to help Venezuela boost its oil
production capacity.
China offers a tempting alternative market for the oil-rich
South American nation despite obstacles, according to experts on
the issue.
However, in response to reports that Venezuela is planning to
sell half of its oil products to China, researchers say that high
transportation costs, and high content of sulphur and metals in
Venezuela's crude oil make it unacceptable for many Chinese
refineries.
"These reports cannot be true, as China does not have the
refining capabilities to process Venezuelan crude and the distance
is too far," said Jiang Shixue, an expert with Chinese Academy of
Social Sciences, on his blog.
(China Daily August 23, 2006)
