Saudi Arabia - China strategic partnership promises no good for US interests in Gulf
Riyadh's quest for new global powerhouse
ANALYTICS 08 December 2022 - 14:08
Fuad Shahbazov |
On December 7, 2022, Chinese President Xi Jinping arrived in Saudi Arabia for a three-day visit to discuss economic and development cooperation prospects with the kingdom and other Arab states, including trade and investment in various industries. While Xi’s visit to the kingdom occurred after seven years of pause, the local media reported that the two leaders discussed an ambitious agreements package worth nearly $30 billion. Reportedly, the contract will be signed during a Saudi-Chinese summit this week.
The Chinese leader praised Sino-Saudi ties consolidated with a strategic partnership pact signed in 2016 based on "continued mutual trust." In a bid to diversify the economy and boost overseas partnerships, Saudi Arabia enhances partnerships with China. The close partnership with Beijing could enable Riyadh to develop its artificial intelligence (AI) sector and invest in green technology, given China’s enormous field-related expertise. As for Beijing, a close partnership with Saudi Arabia paves the way for deeper engagement with its flagship Belt and Road Initiative (BRI) project. Riyadh has already officially joined the BRI project and invested heavily in several infrastructure projects.
Moreover, China sees Saudi Arabia as a critical and reliable energy supply hub, as the kingdom is already the biggest crude oil supplier of China, making up 18% of total crude oil purchases of the Asian giant, with imports totalling 73.54 million tons (1.77 million barrels a day) in the first ten months of 2022, worth $55.5 billion. The energy partnership grew sharply when Saudi-owned Aramco and Chinese oil giant Sinopec signed a memorandum in August 2022 to facilitate energy cooperation. As a part of the deal, in 2024, Aramco will inaugurate a $10 billion petrochemical complex in northeast China, which combines a 300,000-BPD refinery and 1.5 million tons per year ethylene plant marking its single largest investment in China.
Although Saudi Arabia has been a key US ally and partner in the Gulf region for many years, its pivot towards Russia and China stirs anger and debates in the West. However, it did not stop Riyadh from boosting trade turnover with Beijing. According to public data, Saudi exports to China in 2021 consisted mainly of petrochemicals and plastics, while Saudi imports from China were largely electrical equipment, machinery, and vehicles, according to Trading Economics.
Xi Jinping’s visit came at a time when the kingdom’s authorities seek to fill a global powerhouse gap in the region following the declining influence of the US after nearly 90 years of dominance. Even President Joe Biden’s visit to Riyadh in July to exert more pressure on the kingdom to distance itself from Russia and China did not yield positive results. On the contrary, the US has gradually lost its position as the leading trade partner of the kingdom, while China, along with India and Japan, has surpassed the United States, with which trade was only $29 billion last year.
Riyadh’s inclination toward China and Russia may be sought in its desire to move away from Washington’s all-out influence and seek powerful alternative partners to diversify its economy and end one-country reliance. Saudi Arabia is joined by the United Arab Emirates (UAE), another major regional state, in a bid to establish economic ties with China in pursuit of foreign direct investment to build new industries and diversify from an oil-dependent economy without Western participation.
China, in its turn, deepened its military partnership with Saudis, as it supplied the kingdom with some of the artillery and combat drones they have used in their ongoing war against the Houthi rebels in the Yemen conflict. In 2017, Beijing granted the kingdom a license to locally produce Chinese drones, making a room for the Saudi rulers to evade the US pressure, which has long sought to restrain Riyadh’s tactics in the conflict. As such, with the current engagement with Beijing, Saudis may seek assistance to develop also their nuclear capabilities. In 2020, it was reported that China had helped the Saudis construct a facility for processing locally mined uranium ore to extract yellowcake. Though it can be labelled for peaceful uses, the process of boosting nuclear capabilities could be the first step toward uranium enrichment. The kingdom denies allegations about its military intentions behind peaceful nuclear attempts and refuses to cooperate with the International Atomic Energy Agency and grant access for intensive inspections of its nuclear facilities. A few years ago, Riyadh already warned that if Iran acquired a nuclear bomb, it would follow suit quickly.
In a nutshell, China and Saudi Arabia's proximity promises many prospects for both sides while the Western countries are distracted by the war in Ukraine. The US pressure to stop the kingdom’s pivot toward Beijing will unlikely give positive results in the near future since China is also not going to leave its rivals alone on the pitch.
Caliber.Az
1
|
Armenia returns four villages to Azerbaijan, paving the way for peace in the South Caucasus Landmark accord
23 April 2024 - 09:14
|
2
|
Armenian PM's Moscow visit sparks speculation on bilateral relations Dilemma between East, West
23 April 2024 - 11:19
|
3
|
Mark Rutte seeks Türkiye's backing for new job A new pair of hands
24 April 2024 - 16:55
|
4
|
Air France plane safely evacuated at Heydar Aliyev Int’l Airport
24 April 2024 - 19:08
|
5
|
Bilateral relations, regional dynamics, & peacekeepers’ withdrawal Key takeaways from President Aliyev's Moscow visit
24 April 2024 - 14:07
|
Azerbaijan's Nakhchivan appoints new prime minister
25 April 2024 - 12:15
Political analyst: Good relations with Türkiye to be favourable for Armenia
25 April 2024 - 12:13
Iran re-evaluating its ties with Azerbaijan, Armenia
Baku - more important, honest partner than Yerevan25 April 2024 - 12:00
Balancing Turkmenistan – Afghanistan relations
Deviated approach25 April 2024 - 11:48
CENTCOM: US repells Houthi attacks on ships
25 April 2024 - 11:44
France proposes new EU sanctions to fight Russian disinformation
25 April 2024 - 11:31
Minister: Cooperation with Azerbaijan contributes to Hungary's energy security
25 April 2024 - 11:20
EU's proposed Russia sanctions to target oil tankers, ships carrying N. Korean equipment
25 April 2024 - 11:16
Azerbaijani Army conducts command-staff exercises to maintain combat readiness
PHOTO/VIDEO25 April 2024 - 11:10
Armenian politician slams recent burning of Azerbaijani, Turkish flags in Yerevan
Calling the action belligerent pity25 April 2024 - 11:04
Azerbaijan-Kyrgyzstan business priorities: Advancing trade, energy, transport initiatives
Review by Caliber.Az25 April 2024 - 10:51
Media: US sends long-range ATACMS missiles to Ukraine
25 April 2024 - 10:38
Georgia's pre-election turmoil
How the Law on Foreign Agents shapes voter sentiment?25 April 2024 - 10:27
India stands for closer cooperation in fight against terrorism at BRICS meeting
25 April 2024 - 10:25
Iranian president urges international courts to punish Israel for Gaza Strip operation
25 April 2024 - 10:09
Azerbaijan submits report on Convention Against Torture to UN
25 April 2024 - 09:55
Azerbaijan, Kyrgyzstan sign Memorandum on Cooperation in religious sphere
25 April 2024 - 09:43
US welcomes start of Azerbaijan-Armenia border delimitation process
25 April 2024 - 09:21
PM vows to boost UK defence spending to 2.5% of GDP by 2030
25 April 2024 - 09:07
Azerbaijani, Turkish communities hold rally against fictitious Armenian genocide in Washington
PHOTO25 April 2024 - 09:00
EU’s 2050 net zero goals at risk as electric vehicle rollout faces setbacks
25 April 2024 - 07:03
World’s largest wealth fund issues inflation warning on hot commodity markets
real wildcard25 April 2024 - 05:04
How US F-16 fighter jets stack up to Su-35s sent to Iran?
25 April 2024 - 03:05
Belgian brewer whose body produces its own alcohol cleared of drink driving
25 April 2024 - 01:03
Milan becomes latest European hotspot to battle overtourism
No ice cream and pizza after midnight24 April 2024 - 23:00
Germany's position on Taurus remains unchanged
24 April 2024 - 20:59
German business activity increasing in April
24 April 2024 - 20:48
Baku to host space technology conf for Central Asian region
24 April 2024 - 20:45
Sweden’s plan for worst-case scenario
War spreading in Europe24 April 2024 - 20:40
President’s special rep: Karabakh can be called eco-region of Azerbaijan
24 April 2024 - 20:32
Azerbaijani energy minister holds talks with Algerian delegation on advancing bilateral cooperation
24 April 2024 - 20:28
China's Xiaomi selling more EVs than expected
raising hopes it can break even sooner24 April 2024 - 20:24
France proposes new EU sanctions to fight Russian disinformation
24 April 2024 - 20:18
European Commission disburses additional $1.6 billion in bridge financing to Ukraine
24 April 2024 - 20:16
Serb Member of Presidency of Bosnia & Herzegovina Željka Cvijanović invited to COP29
24 April 2024 - 20:12
UK to transfer Paveway IV bombs to Ukraine
PHOTO24 April 2024 - 19:59
Azerbaijani minister, Uzbek ambassador discuss defence cooperation issues
PHOTO24 April 2024 - 19:48
State reception commences to honor Kyrgyz President Sadyr Zhaparov
24 April 2024 - 19:40
MFA: Azerbaijan continues contributing to peace, security
24 April 2024 - 19:35
Kyrgyz president pays tribute to Azerbaijani martyrs
24 April 2024 - 19:30