MNA cited Mr Mahdi Safari Iranian ambassador to Beijing as saying that that Iran and China plan to increase the value of their trade to USD 70 billion in 5 years, dismissing claims that Iran is selling crude oil to China below the market price.

Mr Mahdi Safari said that over the past 2 years, the Chinese investment in Iran has risen from USD 120 million to USD 650 million. Chinese companies are keen to directly invest in Iran in various sectors, including mine industry. The veteran diplomat also described China's fast growing market as a good destination for Iranian goods and said Iran can export carpets, handicrafts, medicinal herbs, jewelry and food items to the country.

He emphasized that Iran should attach high significance to the export of carpets to China, saying if Iran does so the market can saturate "all of our export markets".

Mr Safari denied claims that Tehran is selling cheap oil to China and said Iran sells oil to the country at market price, adding any report claiming that Tehran sells cheap oil to Beijing is just a rumor.

He said that China buys 10% to 12% of oil needs from Iran and now the 2 countries have signed 5 to 7 year contracts for oil purchase. Trade ties between the 2 countries would be cemented in the near future.

According to data from the Beijing based General Administration of Customs, China's oil imports from Iran increased by 17% to 2.6 million tonnes in June with the Asian country importing about 635,000 barrels of Iranian oil per day.

Recently, Iranian Ministry of Industry, Mine and Trade and China's Metallurgical Group Corporation signed a memorandum of understanding to expand industrial cooperation with the economic giant.