December 23, 2004
Rigzone
Fuel-hungry China said Thursday it would help Venezuela develop oil fields, build railroads and boost farm output, as the leaders of the two countries met in Beijing.
China and Venezuela "have economies that are complementary," said Chinese President Hu Jintao. "I welcome Venezuelan President Hugo Chavez with a warm heart."
China's oil imports are soaring as its economy booms, and Venezuela is the world's No. 5 oil exporter. Beijing has been scouring the planet for energy deals to avert shortages that could derail growth.
The two sides signed agreements Thursday to jointly develop Venezuelan oil fields and for Chinese firms to build railroads in the South American country.
China also pledged a credit line of $40 million for Venezuelan agriculture, an official traveling with Chavez said.
They signed eight deals in all, though their total value wasn't announced.
"China has entered a new phase with Mr. Hu Jintao's government," Chavez said in comments shown on Venezuelan state television after his arrival in the Chinese capital.
Venezuelans and the Chinese "agree on many things on the domestic level, such as grass roots development ... and on the international level, like the need for a multi-polar world," Chavez said.
Chavez's four-day China trip comes amid a flurry of efforts by the Venezuelan leader to build ties with Russia and Middle Eastern governments.
Some observers say Chavez is trying to ensure markets for Venezuelan oil in the event of a fallout in relations with the U.S., which is its No. 1 buyer but also a critic of the Chavez government.
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