China and Saudi Arabia signed an energy cooperation agreement yesterday during a landmark visit by Saudi King Abdullah that both sides said would usher in an era of closer economic ties.
King Abdullah, who arrived on Sunday on his first trip outside the Middle East since taking the throne in August, met Chinese President Hu Jintao (胡錦濤) yesterday at the Great Hall of the People.
King Abdullah and Hu oversaw the signing of five agreements, including one on "oil, natural gas and mineral cooperation," and another on "economic, trade and technical cooperation."
Agreements were also signed to "avoid dual taxation", allow for a Saudi loan to improve infrastructure in the city of Aksu in China's oil-rich Xinjiang region, and to facilitate "cooperating in vocational training."
Neither side immediately provided further details of the agreements, although Saudi Foreign Minister Prince Saud al-Faisal spelt out before the signing ceremonies the main interest of both nations.
"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 the prince, who is accompanying the king.
Prince Saud said 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.
He also suggested specific agreements could be signed soon.
The visit by the Saudi king comes at a time when China, the world's second biggest oil consumer, is scouring the globe for more oil to fuel its unprecedented economic transformation.
At the same time, Saudi Arabia, 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 biggest oil consumer.
At the welcoming ceremony, Hu said the fact that King Abdullah had chosen China as the first destination of his first official trip outside the Middle East since ascending the throne had been noted and welcomed in Beijing.
"This will write a new chapter of friendly cooperation between China and Saudi Arabia in the new century," Hu said, who called the king "a respected and familiar old friend" of China.
King Abdullah, who is making the first visit by a Saudi leader to China since the two nations established diplomatic ties 16 years ago, also said he looked forward to stronger bilateral ties.
"What makes us happy is that since the two countries established diplomatic relations in 1990 our two countries have had fruitful cooperation in many fields," he said.
"We hope this cooperation will develop even more in the future."
Analysts said King Abdullah's choice of China as the first country of his Asian tour, which will also take in India, Malaysia and Pakistan, was a strategically sound move.
"China has the fastest growing market and Saudi Arabia has the right product to sell," said a Hong Kong-based oil analyst who requested anonymity.
Shi Yinhong (
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his