12-6-2023 (RIYADH) Saudi Arabia’s Energy Minister, Prince Abdulaziz Salman, declared on Sunday (Jun 11) that the kingdom wants to collaborate rather than compete with China, dismissing Western suspicions about their deepening ties. As the world’s leading oil exporter, Saudi Arabia’s relationship with the world’s largest energy consumer, China, is primarily built on hydrocarbon trade. However, the cooperation between Riyadh and Beijing has expanded into areas such as security and sensitive technology, raising concerns among US officials.
When questioned about criticism of the bilateral relationship at an Arab-China business conference, Prince Abdulaziz Salman stated, “I actually ignore it because… as a business person, now you will go where opportunity comes your way. We don’t have to be facing any choice which has to do with (saying) either with us or with the others.”
Chinese entrepreneurs and investors have actively participated in the conference held in Riyadh, which followed US Secretary of State Antony Blinken’s recent visit to Saudi Arabia.
In March, Saudi Aramco, the state oil giant, announced two significant deals to increase its multi-billion dollar investment in China and solidify its position as China’s top crude oil supplier. These deals were the most substantial ones since Chinese President Xi Jinping’s visit to Saudi Arabia in December, during which he proposed conducting oil trade in yuan, a move that would challenge the dominance of the US dollar.
“Oil demand in China is still growing, so of course, we have to capture some of that demand,” Prince Abdulaziz said. “Instead of competing with China, collaborate with China.”
The growing momentum between the two nations has also raised hopes for a successful conclusion to the negotiations for a free trade agreement between China and the Gulf Cooperation Council (GCC), which is dominated by Saudi Arabia. These negotiations have been ongoing since 2004.
Saudi Investment Minister Khalid Al Falih emphasized that any agreement must safeguard the emerging industries in the Gulf region as it diversifies toward non-oil economic sectors. He stated, “We need to enable and empower our industries to export, so we hope all countries that negotiate with us for free trade deals know we need to protect our new, emerging industries.” Falih expressed hope that a deal would be reached soon.
