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Yemeni President Ali Abdullah Saleh on Friday sought international co-operation to combat terrorism.
Speaking in an interview with Chinese media, Saleh said terrorism is plaguing the world, and the solution lies in the international community's continuous efforts to alleviate poverty.
"Poverty is one of the main reasons behind terrorism," said Saleh, who has been president for 27 years.
He said Yemen is the first country that was harmed by terrorism as it is the ancestral home of Al-Qaida leader Osama bin Laden.
"The September 11 attack on the United States in 2001 has affected tourism and investment in Yemen," Saleh said.
Yemen will put on trial 172 people for suspected links with Al-Qaida and terrorism in September, according to the country's defence ministry.
Speaking highly of China-Yemen ties since diplomatic relations were established 50 years ago, Saleh said China has become a major competitor in the Yemeni market.
Bilateral trade has expanded rapidly over the past few years, from around US$400 million in 2001 to US$3.5 billion last year.
More than 100 businesspeople accompanied the president during his visit to Beijing to meet their Chinese counterparts for business opportunities.
The 64-year-old president is on a four-day visit to China.
According to a deal signed on Thursday, China will provide US$1 billion in preferential loans to Yemen.
Other pacts include China's granting of economic aid and zero-tariff treatment for products imported from Yemen.
Saleh also praised China for its stance on the Middle East issue and the important role it has played in promoting peace there. "We highly appreciated China's position towards various Arab issues, especially the conflict between Arab and Israel," Saleh said.
(China Daily 04/08/2006 page1)