We will increase cooperation on all fronts, Mr Hu said in a speech to a China-Russia trade conference attended by Russian president Vladimir Putin in Beijing on Wednesday. We will focus on technology, energy, telecommunications and nuclear energy.
China needs to secure oil and gas supplies, to meet energy demand in an economy that grew 9.9% last year, the fastest among the worlds major economies. Mr Putin said in a speech on Wednesday, that there is no doubt a pipeline carrying Siberian oil to Russias Pacific coast will extend to China. Mr Hu wants the $11.5 billion pipeline from the eastern Siberia to the Pacific port of Nakhodka to include a spur to China, the worlds second-biggest oil consumer. Russia, the worlds biggest energy supplier, is set to start building the link this year.
China-Russia trade will rise to between $60 billion and $80 billion in 2010, from $29 billion last year, Chinese president Mr Hu forecast in his speech. Trade with Russia accounted for 2% of Chinas $1.42 trillion combined imports and exports last year.
Mr Putin is making a two-day state visit to China to discuss economic and security issues with president Mr Hu. The two sides signed a range of agreements on Tuesday, including a pledge to actively pursue pipeline projects.
Russia, which ships about 3% of its crude exports to the Asia-Pacific region, is building pipelines to increase sales to Asian countries. China buys about 40% of its oil from the Middle East and wants to diversify its sources. Russia supplies 9% of the Chinas oil. OAO Rosneft, Russias state oil company, said on Wednesday it also plans joint ventures with China National Petroleum Co, parent of PetroChina Co, the nations biggest oil company.
Mr Putin is seeking equipment orders and investment in Russian technology companies as part of an effort to diversify the nations economy away from the natural resources. Oil and gas account for about a quarter of the Russias GDP.
China imports more than $350 billion of machinery and technology every year, president Mr Hu said. Russia can have a larger share of our technology and machinery market, Mr Hu said. I encourage you, to sell more technology to China.
Russian exports of machinery and equipment to China fell almost 50% in 2005 from a year earlier even as its overall exports to the nation rose. Russia mainly exports oil, timber, fish and other resources to the Asian nation.
Gazprom, CNPC likely to finalise deal this year
March 22: OAO Gazprom, Russias largest gas company, may complete talks with China National Petroleum Co (CNPC) this year on building pipelines to supply Siberian gas, the Russian gas companys chief executive Alexei Miller said in Beijing on Wednesday.