China and the Cooperation Council for the Arab States of the
Gulf (GCC) inked a framework agreement on economic, trade,
investment, and technological cooperation on Tuesday in
Beijing.
The agreement commits China and members of the GCC, an
influential regional group in the Middle East which includes
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab
Emirates, to establish a joint economic and trade cooperation
commission and officially launch a bilateral consultative
mechanism.
Both sides also agreed to start talks on the establishment of a
free trade area (FTA), aimed at reducing tariffs, simplifying the
flow of goods and facilitating mutual investments.
The FTA, if established, would be China's second with a regional
group after it signed a framework trade agreement with the
Association of Southeast Asian Nations (ASEAN) last year. Its
success would not only lay a more solid foundation for bilateral
cooperation between China and the Middle East countries, but would
serve as a prototype for "South-South" cooperation.
At the same time, both sides also discussed methods and means
for trade expansion and promotion of trade liberalization.
Due to their strong economic links and great desire to
strengthen cooperation, these encouraging moves will inevitably
further advance cooperation between the two sides in various
fields.
According to Chinese statistics, trade volume between China and
GCC members has hit US$16.9 billion, more than 10 times that in
1991. Both sides have also witnessed great progress in the fields
of construction, energy and investment. The GCC countries have now
become China's eighth largest trading partner, eighth largest
export destination and ninth largest source of import.
But compared to their own total trade volume, bilateral trade
between the two sides is still on a small scale. In the respective
domestic markets there is great need for China's garments, fabrics,
electronic and telecommunication products and the GCC's oil,
natural gas and chemical products.
Bilateral cooperation in the field of energy, in particular,
should be a brighter prospect, given that the GCC states control 45
percent of the world's recoverable oil reserves and China serves as
one of the world's largest oil-consuming countries.
Both China and the GCC members have become more cognizant that
to strengthen cooperation with the other serves their fundamental
interests.
(China Daily July 8, 2004)
