Yemeni relations heading east [Archives:2006/935/Front Page]
By: Yasser Al-Mayasi
SANA'A, April 5 ) President Ali Abdullah Saleh began a visit to China Wednesday, April 5, on a tour of several Asian nations, including Pakistan, accompanied by a delegation of key officials and businesspersons.
The tour's most important visit is to China, which is aimed at signing agreements in the fields of trade, economy, security, information and culture. According to government sources, the visit will open wide Chinese investment opportunities in Yemen, especially in sectors like oil and gas, transport and industry. This comes in light of the investment environment which recently witnessed marked improvement. In the past few years, Yemen has become an important market for Chinese exports, with many Chinese products and goods now flooding Yemeni markets. China, whose development is increasing, continuously is seeking consumer markets for its various products.
The president's visit, the third in 20 years, has several perspectives. Yemen, which experiences difficult economic conditions, is looking to enhance economic cooperation, which will bring proceeds into the public treasury to meet expenditures. Media sources confirmed that Saleh's talks with the Chinese will tackle economic cooperation and trade exchange between the two countries, which will sign 19 projects and bilateral cooperation programs. Programs and executive agreements on the agenda include double taxation and an executive program for educational cooperation for 2006-2008. An information agreement and a program to encourage and protect investment until 2008 also will be revealed.
A September net news source close to the presidency said projects ready for signature include expanding Bajil cement plant at a cost of $116 million, electrical power line projects in Al-Haswah, costing $35 million, and a $200 million second natural gas power station with a 400 megawatt yield in Marib.
The Chinese side is expected to offer investment suggestions for Belhaf natural gas station in Shabwa and Ma'abar natural gas station in Dhamar, as well as establish and prepare Al-Saleh Medical City in Sana'a at a cost of $150 million. Other projects include establishing new docks in Hodeidah port, a $200 million Dhaba port project and a strategic multipurpose port in Mokha port. Such projects are in addition to many oil services projects and a railway line to be constructed for use in extracting and transporting mineral wealth.
Economic and technological agreements include China providing a 40 million Yuan ($5 million) grant to Yemen and a profitless 40 million Yuan loan, in addition to another 200 million Yuan (about $25 million) soft loan with two percent interest.
Yemeni-Chinese relations recently have witnessed development for several reasons. Statistics reveal that trade exchange between the two countries rose to more than YR 435 billion in 2005. Statistics add that Yemeni exports to China reached YR 380.9 million, as China is considered Yemen's top trade partner. China rates Yemen fourth in trade partnership.
Observers attribute the success of Yemeni-Chinese relations to a number of factors, topped by Chinese products' suitability for Yemeni consumers because they cater to Yemeni economic situations, as well as simple procedures China provides for Yemeni merchants. China's contribution to Yemen's development is another factor. The most important Chinese products in Yemeni markets include food and chemical items, electrical systems, metal products, clothing and shoes. Chinese imports from Yemen include Yemeni petrol, fish and scrap metal.
Yemeni-Chinese cooperation began in 1956, with China providing much assistance throughout such cooperation, topped by economic, educational and health assistance. The most important achievement in the roads sector is construction of the Sana'a-Hodeidah road, as well as much other unconditional aid that China has furnished.
Observers of Yemeni-Chinese relations believe China's government has strengthened its relations with Yemen by using several factors, including political ones, such as taking advantage of Yemen's cool relations with some influential countries. Observers attribute this to China's non-intervention policy in internal affairs and its respect for all Yemeni governments, which attracted Yemen's government, as well as Yemeni citizens' respect.
Observers also see that Yemen recently granted China immense investment facilities in all fields, including oil discovery and building projects. Observers are also of the idea that Yemen's fondness for the east suits its situation, as Yemen suffers several problems like those experienced in third world countries, which recently were developing themselves; and besides, the cost of fusing with such countries is not expensive.
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