Saudi-China alliance strengthens with 30 million dollar deals
Saudi Arabia and China continue to strengthen their trade and economic partnership. After the successful December summit that opened a "new era" in relations between the Asian giant and the Arab world, Riyadh and Beijing have significantly deepened cooperation in different fields.
In order to consolidate this alliance promoted by Saudi Crown Prince Mohammed bin Salman and Chinese President Xi Jinping, the tenth edition of a Sino-Arab economic forum is being held in Riyadh, which is expected to strengthen the bilateral partnership in various fields. So far, the Chinese and Saudi sides have already reached 30 investment agreements worth $10 billion in sectors such as technology, renewable energy, agriculture, tourism and healthcare, according to Arab News.
"The crown prince has continuously expanded efforts to enhance the long-standing and advanced partnership between the Arab world and China in all fields," said Saudi Foreign Minister Prince Faisal bin Farhan at the opening of the summit. The head of Saudi diplomacy stressed the importance of such a forum in exchanging experiences and identifying new opportunities to promote growth and investment, which, in Bin Farhan's words, will contribute to "prosperity and progress".
During the meeting - organised by ministries of both countries in collaboration with the Arab League - the Saudi government agreed with several Chinese companies on projects related to research, development, production and sale of automobiles, development of tourism, as well as the manufacture of railway equipment. Partnerships between Chinese and Saudi companies have also been promoted.
Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, stressed that his country seeks cooperation and not competition with the world's second largest economy. The Saudi minister also recalled that both countries share similar interests and paths, since, while the Kingdom is developing its national project, Vision 2030, China is working on the Belt and Road Initiative, a plan designed by Beijing in which the Middle East plays a key role.
In this sense, the Saudi Minister of Investment, Khalid Al-Falih, has described the Kingdom as "the gateway to the Arab world" for the Asian giant. Trade between the two countries amounted to $106 billion in 2022, an increase of 30% over the previous year.
Oil, key to the Saudi-Chinese alliance
Within trade, energy is one of the strong points of the strategic relationship between Saudi Arabia, the world's leading oil exporter, and China, the largest energy consumer. Riyadh is aware that demand for oil continues to grow in China, which is why it aspires to capture "part of that demand", as Abdulaziz bin Salman pointed out.
To this end, state oil company Saudi Aramco announced in March two agreements to increase its investment in China, reinforcing its position as Beijing's main crude oil supplier. However, the Kingdom is not alone in its desire to lead the oil market in China. Due to sanctions imposed after the invasion of Ukraine, Russia has been forced to sell its oil at lower prices to Asian countries, especially India and China.
Riyadh ignores criticism of its partnership with Beijing
The strong relationship being forged between Saudi Arabia and China is one of the current challenges facing the US. Through its alliance with Riyadh, Beijing is also gaining influence in the Middle East, and not only in economic and commercial matters. The Asian giant took centre stage last March after securing an agreement between Saudi Arabia and Iran to resume relations after years of disagreements. Given the success of its mediation, the Asian giant has shown its willingness to negotiate peace between Israelis and Palestinians after decades of confrontation and violence.
Washington is wary of China's emergence in the region, as well as the new ties between Riyadh, one of its key regional allies, and Beijing, its main trade competitor. Likewise, US-China relations have been significantly strained by the situation in Taiwan and the Chinese government's stance on the war in Ukraine.
The Kingdom is aware of Washington's growing concern over its ties with China, although Riyadh sees "nothing political about it". "Saudi Arabia will go wherever opportunities present themselves," said Abdulaziz bin Salman, who said he was "completely unaware" of criticism of his alliance with China.
Saudi Arabia is making decisions based on its national and strategic interests, even if these are at odds with those of the US. In recent months ties between Riyadh and Washington have cooled in the wake of, for example, OPEC+'s decision to cut oil production. The Kingdom has also decided to resume relations with Syria, despite the US's strong refusal to readmit Damascus to the Arab League.
Nevertheless, Saudi Arabia remains a key US ally in the region in security, defence and counter-terrorism. During Secretary of State Antony Blinken's recent visit to the Kingdom, the two nations reaffirmed the bilateral partnership on these issues.