About 100 entrepreneurs from China and Saudi Arabia held trade talks Tuesday in Beijing on future economic cooperation and the setting up of a joint investment company.

Wang Tao, president of the China-Saudi Arabia Friendship Association, said China and Saudi Arabia are strongly compatible in economy and trade. The two sides have huge potential for cooperation in the investment field.

Wang acknowledged that setting up a Sino-Saudi Arabian joint investment company was raised by the Council of Saudi Chambers of Commerce and Industry (CSCCI) during his visit to Saudi Arabia last year.

China "attached great importance" to the plan, he said. After careful consideration, it decided to appoint Huanghuaihai Group Corporation as its representative, which is responsible for the preparation work of the Chinese side and the coordination work with Saudi Arabian side, Wang said.

Abdul Rahman Al-Jeraisy, president of the Saudi Arabia-China Friendship Association and CSCCI chairman, said trade between the two countries has progressed rapidly. The bilateral trade volume is expected to exceed 10 billion US dollars this year, laying a sound foundation for investment cooperation between the two sides, he said.

China is rich in resources and has great market potential, he noted. CSCCI favors to invest in China and build plants, and also welcomes Chinese enterprises to joint Saudi Arabian market.

According to him, Saudi Arabia will spend 600 billion US dollars in the next 15 years in the fields of irrigation, public health, road and railway construction, communication, education. "It provided a good investment opportunity for Chinese enterprises," he said.

"At present, we are working hard for the preparation work for the joint investment company," Al-Jeraisy said, expressing his hope that it will bring better opportunities for future economic and investment cooperation between the two countries.

Guo Kexun, board chairman of Huanghuaihai Group Corporation, said each of the two sides will spend 50 million US dollars to set up the joint investment company, which will invest chiefly in energy and infrastructure fields in future.

The trade talks are sponsored by the Chinese People's Association for Friendship with Foreign Countries.

Source: Xinhua