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Venezuelan President Hugo Chavez arrived in Beijing late last night for his fourth visit to China, aiming to forge closer energy and economic ties.

 

Chavez's visit is seen mostly in economic terms as he is scheduled to meet a number of Chinese entrepreneurs today and is expected to sign a deal to increase Venezuela's oil deliveries to China after talks with President Hu Jintao tomorrow.

 

The two countries are also expected to cement their relationship by signing a series of financial, technological and education exchange agreements.

 

The visiting president will also meet with parliamentary leader Wu Bangguo and Premier Wen Jiabao Friday and then fly to east China's Shandong Province.

 

His Beijing tour will also include a visit to facilities where initial work is being done on a communications satellite for Venezuela.

 

Venezuela last year signed a deal with China for the satellite, which is expected to be put into orbit by 2008.

 

Analysts say the trip is part of Chavez's push to disengage economic dependency on the US. It is reported that Chavez will sign contracts with China to build 18 tankers to haul more crude oil to Asia and 12 drilling rigs to help Venezuela boost its oil production capacity.

 

China offers a tempting alternative market for the oil-rich South American nation despite obstacles, according to experts on the issue.

 

However, in response to reports that Venezuela is planning to sell half of its oil products to China, researchers say that high transportation costs, and high content of sulphur and metals in Venezuela's crude oil make it unacceptable for many Chinese refineries.

 

"These reports cannot be true, as China does not have the refining capabilities to process Venezuelan crude and the distance is too far," said Jiang Shixue, an expert with Chinese Academy of Social Sciences, on his blog.

 

(China Daily August 23, 2006)