Categories: Economy

$50 billion deal signed between Saudi Arabia and China

$50 billion deal signed between Saudi Arabia and China

Saudi Arabia’s investment minister told the China summit held in Saudi Arabia last week that the two countries have signed investment deals worth around $50 billion. The minister did not elaborate on the types of agreements or the countries involved.

Saudi Arabia’s Investment Minister Khalid Al Falih told Bloomberg on the sidelines of a conference in Riyadh yesterday that the deals cover both the public and private sectors.

the ties are deeper

Chinese President Xi Jinping also attended the summit hosted by Saudi Crown Prince Mohammed bin Salman last week, which showcased deepening Gulf ties with Beijing. During the visit, warm words were delivered about the unity between China and the Middle East.

On the other hand, Xi also met at the summit with the leaders of Egypt, Palestine, Jordan and Tunisia, and 34 investment agreements were signed with companies from Saudi Arabia and China in various fields. However, despite the warm messages, it is claimed that most of the agreements announced are memorandums of understanding. Most of the deals lack firm deadlines and commitments for now.

WILL THEY HAVE RELATIONS WITH THE USA?

Notably, the deal was made during the energy crisis and coincided with a period when relations between the US and Saudi Arabia were strained over the oil trade. China is currently trying to strengthen coordination with Saudi Arabia and its neighbors on energy policy and oil exploration.

The Saudis, along with Russia, are the de facto leader of OPEC+, which produces around half of the world’s oil. Although the US has long demanded an increase in oil supply due to high prices on the oil market, the Saudis did not take this issue kindly.

US STATEMENT BY SAUDI

Saudi Foreign Minister Faisal bin Ferhan also made a statement on the matter recently, stating that the partnership with China is not against the partnership agreement with the US.

Stating that cooperation with China is essential for development, Bin Ferhan said, “This does not mean that we do not make efforts to cooperate with the US and other economic countries in the world. “We don’t believe in having to choose between the two sides or in polarization,” he said.

THE COMPETITION IS GROWING

Growing competition between the world’s two largest economies, the US and China, makes the Middle East region, home to most of the world’s energy resources, the arena of a new struggle for influence.

At a time when Washington describes China as the “most important long-term threat” and shifts its weight to the Asia-Pacific region in its global strategy, the Beijing administration seeks to increase its influence in the Middle East, where the US The US has been the player shaping regional developments for many years.

Source: Sozcu

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