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China and Saudi Arabia's trade volume has hit US$2.7 billion during the first two months of 2006, up 43 percent over the same period of last year, latest statistics from the Ministry of Commerce revealed.

Of the total, the export volume of China was US$480 million, up 21 percent while that of Saudi Arabia was US$2.21 billion, up 49 percent.

With approximately 22.18 million tons of oil exported to China last year, Saudi Arabia has become China's biggest oil supplier. China's oil imports from Saudi Arabia is predicted to be around 25 million barrels by the end of this year.

"With abundant oil resources and a stable political environment, Saudi Arabia is an ideal trade partner of China in the Middle East," said Yang Guang, Director of the Western Asia and Africa Research Institute of the Chinese Academy of Social Sciences, adding that the two economies complement each other.

Yang also suggested that China should make use of Saudi Arabia's capital and technical advantages to perfect its own oil refineries.

Earlier this year, the Saudi Arabian government announced a series of plans, aimed at attracting foreign investment of US$624 billion within 15 years to boost the development of its major industries like natural gas, electricity, water desalinization, railway construction and telecommunications.

"This means great opportunities for Chinese companies," Yang noted.

(Xinhua News Agency April 23, 2006)