China and the Gulf Cooperation Council (GCC) have completed a round of talks on a free trade agreement as part of Beijing's efforts to secure long-term supplies of oil, state press reported Monday.
Chinese trade officials held talks with council members Saudia Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates in the eastern province of Zhejiang from July 19-22, the Beijing Morning Post reported.
"Once we establish a free trade zone, then a new, unlimited 'Silk Road' will be formed," the news paper quoted Vice Minister of Trade Yi Xiaozhun as saying.
More than 40 percent of China's oil imports come from the six Gulf states so Beijing is eager to secure long-term and stable supplies, especially as crude prices continue to rise to record heights, the newspaper said.
There was no mention of when the next round of talks would be held nor of a timeframe for finalizing the agreement.
The official Xinhua news agency said the talks began in July 2004 and the just completed discussions were the third time the two sides had met on the issue.
The European Union is also currently in negotiations to set up a free trade agreement with the GCC, which this year is celebrating its 25th anniversary.
In principle, the GCC plans a common market among member states in 2007 and a monetary union and a single currency by the start of 2010.
However, a slew of political and economic differences among member countries ruled by powerful and sometimes competing dynasties has gotten in the way.
Over the past year, Bahrain and Oman have signed free trade agreements on their own with the United States and Washington is seeking similar deals with Qatar, Kuwait and the United Arab Emirates.
