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Chinese president Hu Jintao and Turkmenistan president Saparmurat Niyazov signed a frame agreement on energy and gas cooperation in Beijing on April 3. An agreement on the construction of silk velvet plant is also included. Niyazov was in Beijing for a six-day visit to China.

Based on the historical ties and good traditions, we will further develop the productive and mutually beneficial partnership, including in the silkworm breeding, taking into account that this craft flourished on the Turkmen land in ancient times, Niyazov stressed. Reviving it in the years of independence, we need the support and experience of our Chinese partners, cooperation that already brings tangible results, the president said. He also recalled that 125 million Chinese Yuan (about US $ 15 million) were issued for development and modernization of Turkmenistan's silkworm industry in 2001-2006 within the framework of interstate agreements on technical and economic cooperation signed earlier, 70 million of which were provided in the form of soft loans and 55 million in the form of grants. The efficient Turkmen-Chinese partnership resulted in reconstruction and re-equipment of the Mary grenadine plant, Turkmenabat silkworm production association and Ashgabat filature. The construction of a velvet plant in Turkmenabat with a capacity of 1 million running meters per annum that will be fitted with Chinese high-tech equipment will be the next vivid example of the productive cooperation.
During his visit to China, President Niyazov arrived in east China’s Zhejiang province. President Niyazov showed great interest in China’s silk, for which China is famous, and hoped to learn from Zhejiang in silk production.