Visiting President of Venezuela Hugo Chavez responds to questions by reporters during an impromptu press conference on the tarmac on arrival in Beijing, early 23 August 2006. AFP PHOTO/Frederic J. BROWN

Chavez's six-day tour of the world's fourth-largest economy and second biggest energy consumer comes at a crucial time for his country as it seeks to dramatically increase oil production.

Currently, for all its anti-American rhetoric, Venezuela exports the vast majority of its oil to the US market, making it heavily dependent on the huge power to its north.

China offers a tempting alternative market for Venezuela, as the Asian giant looks to diversify its imports away from the current heavy emphasis on the volatile Middle East.

In the lead-up to Chavez's visit, Venezuela offered to export between 500,000 and one million barrels of oil a day to China if the South American nation reached a goal of producing 5.8 million barrels of crude by 2012.

"If everything goes according to Venezuelan plan, they'll have more oil to dispose of," said Mark Daniell, a Singapore-based oil analyst with consultancy Cuscaden Group.

"They would obviously prefer to have a substantial component of that new oil go to China rather than the US."

Venezuela is willing to accept a three-dollar discount per barrel of oil it exports to China caused by longer shipping times and increased insurance payments, analysts said.

Meanwhile China appears prepared to buy Venezuelan oil, even though refining costs would be higher than fuel from other sources due to its high sulfur content.

"It's a slightly higher cost on both sides but I also believe it's in the long-term interest of both countries to develop their relationship," said Daniell.

China already has interests in Venezuela's energy sector, and its state-owned oil company CNPC has for the past four years had exploration contracts for its Orinoco region.

In another indication that China is a key link in Venezuela's plans to boost production, Chavez announced last week his country would buy Chinese supertankers in order not to depend on renting vessels.

China may be an important agenda item for Venezuela but Asia's other giant emerging economy, India, could also play a role.

"It's important and a priority to negotiate new markets such as China and India," Luis Vierma, vice president of Venezuela's state-owned oil company Petroleos de Venezuela, said last month.

While Chavez's visit to China is seen mostly in economic terms, his trip also has a distinctly political flavor, analysts said.

Venezuela has given many warm signals about the bilateral relationship ahead of Chavez's trip, which will be his fourth to China since he came to power in 1999.

"The visit constitutes the consolidation of the two nations' strategic alliance," said Rocio Maneiro, Venezuela's ambassador to Beijing.

"China is a natural ally for Venezuela, with the same foreign policy objectives as Venezuela."

Chavez is fashioning himself into Washington's staunchest adversary in Latin America along with Cuba's Fidel Castro.

And just like the Soviet Union was once a strong Cuban ally, boosting the Caribbean nation as it defied the American superpower, so China would be a welcome friend for Venezuela, observers argued.

"In China, Chavez sees an emerging power quietly growing and challenging US dominance," Caracas Metropolitan University political expert Elsa Cardoso said.

Chavez's trip also comes as Venezuela looks to Beijing to back its bid for a non-permanent seat at the United Nations Security Council, but the United States is likely to strongly oppose Venezuela getting it.

China knows this and, wary of being seen as a challenge to the United States, is all but certain to offer low-key support at best, analysts said.

"The Chinese don't like to openly defy the United States and know very well how to hedge their bets without taking sides in matters that irritate Washington," Cardoso said.

Chavez will travel to Malaysia and Angola after China.