China and Saudi Arabia forge closer economic ties for mutual
benefit
Trade and economic collaboration between China and Saudi
Arabia are set to experience significant growth in the coming years, driven by
the alignment of economic interests and joint efforts to enhance synergy
between the Belt and Road Initiative and Saudi Vision 2030, according to
analysts and corporate executives.
Saudi Vision 2030 signifies a transformative economic and
social reform agenda that is opening doors to global opportunities for Saudi
Arabia. It is also fostering improved communication and coordination between
China and Saudi Arabia on regional and international matters.
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While the core of China-Saudi Arabia business relations has
traditionally centered on the oil trade, Saudi Arabia's ambitions to modernize
its infrastructure, services, and manufacturing capabilities, including
projects related to roads, airports, oil tankers, new energy initiatives,
offshore engineering equipment, and container ports, have created new opportunities
for Chinese project contractors and manufacturers. This was highlighted by Wang
Wen, executive dean of the Chongyang Institute for Financial Studies at Renmin
University of China.
Furthermore, Wang stated that Saudi companies are eager to
explore third-party markets in collaboration with China, aiming to strengthen
commercial ties with various countries and regions through increased
cooperation under the Belt and Road Initiative.
"China has been action-oriented in advancing a global
community with a shared future, and its major actions include co-building the
Belt and Road Initiative and further implementing the Global Development
Initiative, Global Security Initiative, and Global Civilization
Initiative," he added.
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Thanks to their complementary trade structures and closer
economic ties, China-Saudi Arabia trade witnessed a significant 33.1 percent
year-on-year increase to $116.04 billion in 2022, as per data from China's
General Administration of Customs.
China mainly exports construction machinery, vessels,
manufacturing equipment, steel, textiles, furniture, computers, smartphones,
garments, and household appliances to Saudi Arabia. Chinese-made electric
passenger vehicles have also gained popularity in the country.
Apart from crude oil, petrochemicals, fertilizer, and other
products, Saudi Arabia's exports to China encompass various goods such as
metallic ore, aquatic products, marble, olive oil, sesame, and dairy products.
The potential for trade cooperation between China and
countries involved in the Belt and Road Initiative is continuously unfolding,
acting as a new driving force for China's foreign trade and outbound direct
investment, particularly in areas like 5G, autonomous driving, new energy
vehicle production, and smart city development, as noted by Sun Fuquan,
vice-president of the Chinese Academy of Science and Technology for Development
in Beijing.
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These rapidly developing technologies reaching maturity in
China can contribute significantly to Saudi Arabia's industrial aspirations and
supply chain development.
Keen to expand its presence in the Middle East, Chinese
photovoltaic manufacturing enterprise GCL Technology Holdings announced its
advanced talks with Saudi Arabia in early September regarding the opening of
its first overseas factory. The company, the world's second-largest polysilicon
manufacturer, is looking to establish a plant in Saudi Arabia that can produce
120,000 metric tons of green hydrogen annually. The project is set to commence
as early as 2025, according to Joint CEO Lan Tianshi. Saudi Arabia's mature
infrastructure and ample sunlight offer a favorable environment for
transitioning from an oil-centric nation to a solar energy producer.
Riyadh Air, the newly established national carrier of Saudi
Arabia, plans to commence operations in 2025, with direct flights to Chinese
cities launching in early 2026. The airline foresees growing demand for both
business and leisure travel between China and Saudi Arabia.
Tony Douglas, CEO of Riyadh Air, stated, "There is a
significant demand for business connectivity between China and Saudi Arabia. We
have also seen substantial leisure travel demand as people are curious about
Saudi Arabia."
Source: https://www.chinadaily.com.cn/
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