BEIJING/DUBAI (Nov 2): China and Oman lauded a new starting point in bilateral relations on Monday, with the Sultan of Oman proposing to Chinese President Xi Jinping a preferential bilateral trade and investment agreement.

"We are confident that such an agreement would open new avenues for trade and investment, facilitate and enhance commercial and investment exchanges between our two nations," Sultan Haitham bin Tariq al-Said told Xi at the start of their meeting at the Great Hall of the People.

Oman hopes to increase the volume of trade with China, and develop projects through joint investment funds across various fields including renewable energy, artificial intelligence, digital technologies, space and defence, Haitham said, according to state-run Oman News Agency.

China is Oman's largest trade partner, with tourism and business links boosted by direct flights between Beijing and Muscat since November last year. Oman, which exports crude oil and energy products to China, has also been looking to further develop its renewable energy supply chains and digital commerce.

Xi told Haitham that China sees expanding and deepening ties with Oman as a "shared strategic choice" for both countries.

"I am ready to work with you to guide the China-Oman strategic partnership to an even higher level, better serve the peoples of our two countries, and contribute to peace, stability and prosperity in the region," Xi said, according to a report from the media pool covering the meeting at the Great Hall of the People.

Haitham arrived in Beijing on Sunday for a two-day visit, the first by an Omani head of state since the countries established ties in 1978.

The Omani leader, who was welcomed on the tarmac by the People's Bank of China governor Pan Gongsheng, also emphasised cooperation between investment and financial institutions.

Haitham did not bring up the Middle East conflict directly in his remarks but praised China's efforts to enhance international security, stability, and cooperation.

"We further express our deep appreciation for China’s positions on key issues concerning our region," he said.

Last week, the Chinese foreign ministry said that China will soon be dispatching its special envoys to countries in the Middle East to promote engagement and de-escalation.

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