Saudi Arabia’s Ministry of Investment signed $10 billion worth of investment agreements with Chinese companies on June 11, the first day of the 10th Arab-China Business Conference in Riyadh.
The deals include a $5.6 billion agreement with Chinese electric car maker Human Horizons for automotive research, development, manufacturing, and sales of luxury electric vehicles. Other investment agreements span sectors such as technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare, according to the Saudi Press Agency (SPA).
Saudi Foreign Minister Faisal bin Farhan said in a speech at the conference that China remains the largest trading partner of Arab countries, with the volume of trade exchange reaching $430 billion in 2022, up 31 percent from the previous year.
The kingdom makes up 25 percent of this volume. According to Bin Farhan, 2022, trade between Riyadh and Beijing reached $106.1 billion.
The Saudi official stressed that Chinese President Xi Jinping’s visit to Riyadh in December 2022 “further strengthened political, economic, investment and trade ties between the two friendly countries.” Several agreements worth more than $50 billion were signed during Xi’s visit, which coincided with the launch of the first China-Arab States Summit and China-Gulf Cooperation Council (GCC) Summit.
In response to growing discontent over historically lopsided ties between Arab states and the US, China has made significant diplomatic and economic inroads across West Asia.
In March, Saudi Aramco – the world’s biggest crude exporter – agreed to acquire a 10 percent interest in Chinese producer Rongsheng Petrochemical for $3.6 billion. Under the deal, Aramco would supply 480,000 barrels per day (bpd) of Arabian crude oil to Rongsheng affiliate Zhejiang Petroleum and Chemical Co Ltd (ZPC) under a long-term sales agreement.
Aramco is also building a 300,000 bpd refining and ethylene-based steam cracking complex in China’s Panjin City with Chinese partners Norinco Group and Panjin Xincheng Industrial Group (PXIG).
Beijing is also responsible for securing a landmark rapprochement deal between Saudi Arabia and Iran, which also led to the restoration of ties between the kingdom and Syria.
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