Chávez to bolster oil links with China

VENEZUELA / CHINA:PRESIDENT HUGO Chávez arrived in Beijing yesterday on a visit to cement ties between Venezuela and China, saying he hoped to build three joint-venture refineries in the country to process Venezuelan crude oil, and construct a joint tanker fleet.

China needs oil to fuel its booming economy, while the famously outspoken Mr Chávez, who reserves his strongest broadsides for Washington, wants to reduce his country's need to sell oil to the US, which buys 60 per cent of Venezuela's oil despite tense relations between the two countries.

Mr Chávez describes China as a "strategic ally", although Beijing has stressed it does not want its ties with Caracas to complicate relations with Washington.

In May, China and Venezuela agreed to build a 400,000-barrel-per-day plant in southern Guangdong province, and Mr Chávez said Venezuela aims to increase oil exports to China to 500,000 barrels per day next year, and one million barrels per day within four years.

"China is investing over there, Venezuela is investing over here. We are talking about three refineries, to bring our crude, which is heavy, and process it here in China," Mr Chávez said.

China will launch Venezuela's first satellite on November 1st and Venezuela is also hoping to buy combat and training aircraft from China. Mr Chávez's international tour will include his second visit to Russia in two months, and he will also visit Portugal and France.