China Signs 1 Bln Dollars in Contracts with Turkey

China and Turkey signed nearly 40 contracts worth more than one billion U.S. dollars at the end of a forum on economic cooperation and investment in Istanbul this week.

Officials and entrepreneurs from both sides have pledged to forge closer economic and trade relations.

Zhen Chenguang has more:

Reporter:

Chinese Commerce Minister Chen Deming is visiting Turkey with a delegation of representatives from some 70 major Chinese businesses.

During his visit, China and Turkey have signed 38 deals covering Chinese imports of minerals, marble and other products from Turkey as well as contracts for building power plant projects in Turkey.

Chen addressed a Turkish-Chinese economic and investment cooperation forum in Istanbul and said the Chinese government is ready to provide the necessary support that will encourage Turkish investment in China.

"The trade and economic structure of China and Turkey indicates that the imbalance in mutual trade will still exist during a certain period of time. But China has no intention to pursue a trade surplus with Turkey. We hope more Turkish products will come to the Chinese market, which will help to gradually balance the mutual trade."

Turkish Foreign Trade Minister Zafer Caglayan says Turkey will make full use of its geographical advantages to attract more Chinese investments.

"It's of strategic importance to deepen cooperation in commerce with China, especially with Chinese enterprises. Now we are at a crucial period that requires us to deepen mutual understanding. According to Turkey's tariff treaty with Europe, foreign investors can enjoy zero tariff treatment if they sell their products from Turkey to Europe. Therefore, Chinese enterprises can invest in Turkey in many fields, including electronic communications, manufacturing and energy."

China and Turkey saw their trade surge from more than 1 billion U.S. dollars in 2000 to more than 12 billion U.S. dollars in 2008. Turkey' s exports stood at only about two billion U.S. dollars in 2008.

Data from China's Commerce Ministry indicate Chinese enterprises' direct investments in Turkey reached more than 300 million U.S. dollars as of the end of September 2009.

Actual investment by Turkish companies in China exceeded 100 million U.S. dollars as of the end of October.

Zheng Chenguang, CRI News.