Visiting President of Venezuela Hugo Chavez (L) responds to questions during an impromptu press conference on the tarmac upon his arrival in Beijing, as a Chinese military officer stands behind him. Chavez arrived in China for a visit aimed at forging closer energy and economic ties. [AFP]

Venezuelan housing minister Ramon Carrizales and Liang Chuanxin, vice president of the state-owned China CITIC Group, agreed Chinese capital will finance 75 percent of the deal, which was denominated in euros, the Bolivarian News Agency said in a statement late Monday.

President Hugo Chavez, who is visiting Beijing this week on a three-nation tour, has said solving the country's acute housing crisis is a key pillar of his socialist revolution.

Up for re-election in December, Chavez has promised to build 150,000 homes by the year's end. But the housing ministry said in a statement Monday that it only expects to have 60,000 finished by the end of September.

Venezuela is also working with Iran to jointly build 10,000 homes in the country. Last month, Chavez also proposed supplying Belarus with crude in exchange for houses and technology.

About 1.6 million of Venezuela's 26 million inhabitants need a home, according to the government.

Venezuelan President Chavez arrives in Beijing

At the invitation of Chinese president Hu Jintao, Hugo Rafael Chavez Frias, President of Venezuela, arrived in Beijing on Tuesday night, starting his six-day state visit to China.

During his stay in Beijing, Hu will hold talks with Chavez, and Chinese top legislator Wu Bangguo and Premier Wen Jiabao will meet him respectively, exchanging views on bilateral relations, trade, energy cooperation, and other regional and international issues of common concern, according to the source with Chinese Foreign Ministry.

A series of agreements of cooperation are also expected to be signed, the source added.

Besides Beijing, Chavez will also visit Chinese eastern province of Shandong.

Chavez visited China in October 1999, May 2001, and December 2004 and this visit is his fourth China tour.