Trade and investment ties between China and the Persian Gulf countries are likely to be the main topic of conversation during Chinese President Xi Jinping’s visit to Saudi Arabia. Gulf states see a possible solution to the post-oil era in the East. This writes Reuters.
China, the world’s largest energy consumer, is a major trading partner of Gulf oil and gas producers. For example, China gets eighteen percent of its total oil imports from Saudi Arabia, and the state-owned oil company Aramco makes deals with Chinese refineries every year.
For this reason, the Riyadh government has made strengthening trade ties with China a top priority during Jinping’s visit. At the time of the visit, Saudi Arabia is also holding a China-Gulf summit and a China-Arabia summit, where diplomats say many deals will be signed.
Infrastructure
In addition to energy cooperation, the Gulf Cooperation Council (GCC) also wants to forge deals on Chinese assets, construction contracts and investment opportunities in Chinese infrastructure and manufacturing. “GCC wants foreign direct investment that not only takes advantage of local supply, but also ensures that smaller companies, etc., enter global supply chains,” said SIA Energy International Director Fareed Mohamed. ‘Chinese companies can help with this. First regionally in Asia, and then well beyond.’
Source: BNR
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