China banks on ties with Gulf Cooperation Council
The economic ties between China and Qatar have become increasingly important for both countries, as shown by the trade figures for January, which show China was the largest source of imports for Qatar.
According to China's Ministry of Commerce, the value of imports from China to Qatar increased by 22.47 percent year-on-year to reach $300 million, accounting for about 11 percent of Qatar's total imports.
The products that Qatar imports the most from China are machinery, engines, pumps, electronic equipment, furniture, lighting, signs, iron and steel products, clothing, stone, plaster, cement, rubber, wood, inorganic chemicals and ceramic products.
The total trade volume between Qatar and China amounted to $992 million in January, only Qatar's trade with Japan, the Republic of Korea and India was higher.
Cao Jiachang, deputy director-general of the department of Western Asian and African Affairs at China's Ministry of Commerce, said that trade cooperation between China and members of the Cooperation Council for the Arab States of the Gulf is playing a significant role in the development of "the Belt and Road" initiatives, which is Beijing's latest attempt to improve trade connections between Asia and Europe.
Shen Danyang, the ministry's spokesman, also stressed at a news conference, announcing the start of negotiations on a free trade agreement this year, that Gulf Cooperation Council members are important partners on China's proposed new Silk Roads.
To strengthen the cooperation in various aspects between Qatar and China, a procurement fair featuring construction and technology will be held in Qatar's capital, Doha, in mid-December.
The fair will help bridge the economic and trade cooperation between China and Qatar, and facilitate Chinese companies and products entering the Qatar market, Cao added.
In November, Qatar and China signed a number of strategic cooperation agreements concerning infrastructure construction, industrial and high technology, energy and alternative energy.
In addition, China's central bank announced in November that the Industrial and Commercial Bank of China's Doha branch had been appointed as the clearing bank for renminbi deals in Qatar, making Qatar the Middle East's first hub for clearing renminbi transactions.
The Qatari central bank said, the signing of the Memorandum of Understanding and the appointment of the renminbi clearing bank will strengthen the ties between China and Qatar, and position Qatar as the regional centre for renminbi clearing and settlement.
A clearing bank can handle all parts of a transaction from when a commitment is made until it is settled. This can reduce costs and the time taken for trading and boost activity in a financial centre. As the Gulf's trade and investment ties with China booms, the renminbi is becoming increasingly important to the region.
"It's a clear signal that there is demand from Qatar and some of the surrounding Middle Eastern countries," said Candy Ho, global head of renminbi business development at HSBC.
shijing@chinadaily.com.cn
(China Daily 03/27/2015 page20)
