CHINA: China and Venezuela, two of the biggest nations on Washington's worry list, drew closer together yesterday with the signing of trade agreements that the Venezuelan president called a "Great Wall" against American hegemonism.
A million-barrel a day oil deal and a promise by China to back Venezuela's bid to join the United Nations security council were the main fruits of a week of meetings in Beijing, ending with talks between Hugo Chavez and the Chinese prime minister, Wen Jiabao, yesterday.
The warming of relations reflects a shift in global diplomacy as China seeks energy resources to fuel its economy and Mr Chavez attempts to build alliances with nations threatened by US power, including Iran, Syria and North Korea.
China agreed to increase its imports of Venezuelan oil, refined fuels and a hydrocarbon called Orimulsion from the current 160,000 barrels a day to 500,000 by 2009 and a million by 2016.
This is crucial for China, which is the world's second largest oil user after the US. From being a net exporter of oil little more than a decade ago, the world's fastest growing economy is increasingly dependent on overseas supplies. It currently uses about 7.4 million barrels a day.
China has strengthened ties with suppliers Iran and Sudan, and also made deals with Canada. Venezuela looks set to become an increasingly important partner. Mr Chavez underlined the trend with a chart forecasting a sharp increase in the share of Venezuelan oil produced and refined by joint ventures with China in coming years.
According to the Venezuelan media, China has also agreed to build houses for 20,000 people as a contribution towards Mr Chavez's policy of reducing homelessness. Chinese state-controlled news agencies say Beijing will also help the South American nation build a fibre optic network, modernise a gold mine and develop railways and farm irrigation systems.