UAE, China to ink defence pact

DEFENCE COOPERATION: The UAE and China are expected to sign four agreements, including a defence pact, the source said.

The UAE is expected to ink an agreement with China on cooperation in the defence sector during this week's state visit by Dubai's ruler, a source has told ArabianBusiness.com in Beijing.

The defence pact is part of four memorandums of understandings (MoUs) the two countries are expected to sign during the four-day trip, the source said.

The other agreements will cover cooperation on security issues, customs and trade.

No monetary value for the agreements has been discussed.

Sheikh Mohammed bin Rashid Al-Maktoum, also vice president prime minister of the UAE, arrived in Beijing on Monday for talks with Chinese President Hu Jintao.

The leaders touched on political issues during their meeting, but the discussions centred primarily on how to increase bilateral trade between their countries, according to a source quoted by newswire AFP.

Trade between the two countries has surged in recent years. China was Dubai's second biggest trading partner in 2007 for the third year running, with non-oil trade increasing by 47% to reach 71.2 billion UAE dirhams ($19.4 billion).

Sheikh Mohammed is being accompanied by a 50-strong business delegation as the UAE looks to forge stronger economic ties with the world's fastest growing economy.

UAE business leaders are seeking $2 billion worth of new deals in China, with under performing companies being targeted for acquisition in the next six months, officials have said.

Speculation is mounting that a special Dubai-China investment fund will be announced in the next few weeks, set up to invest in Chinese companies.

Sheikh Mohammad is expected to meet Vice President Xi Jinping and Premier Wen Jiabao on Thursday, the last day of his visit. He will participate in a university roundtable on Tuesday and a bilateral economic forum in Shanghai on Wednesday.

UAE targets $2bn of new deals in China
UAE IN CHINA: Speculation grows of Dubai-China fund for investments into Chinese companies.

Sheikh Mohammed meets Chinese president
UAE IN CHINA: Hu Jintao hails state visit a boost to friendship and cooperation between two countries.

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