IRIA News

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Chinese Premier Li Qiang visited Riyadh and Abu Dhabi to engage with Gulf leaders. During his meetings, Li emphasized China’s commitment to strengthening ties with Saudi Arabia, the UAE, and other Gulf Cooperation Council (GCC) nations.

He also highlighted the importance of advancing negotiations for the China-GCC free trade agreement, aiming for its swift conclusion to boost economic cooperation between China and the region. Speaking on the goals of his trip, Li emphasized that his mission is “to push the bilateral relations to their highest level.”

Chinese Premier and Saudi Crown Prince discuss energy, investments, and trade ties

In Riyadh, Chinese Prime Minister Premier Li Qiang and Saudi Crown Prince Mohammed bin Salman held a pivotal meeting on September 11, 2024, to discuss expanding cooperation between China and Saudi Arabia across several key sectors, including energy, investment, and trade. The discussions come at a time when both nations are seeking to strengthen bilateral ties amidst complex geopolitical and economic dynamics in the region.

At the forefront of the meeting between Li and Prince Mohammed were discussions on cooperation in areas such as energy, security, commerce, culture, and technology. This broad-based approach reflects both countries’ mutual desire to enhance their partnership, particularly in light of Saudi Arabia’s Vision 2030, which seeks to diversify the kingdom’s economy away from oil dependence.

China, the world’s second-largest economy, is already Saudi Arabia’s biggest trading partner, and China accounts for nearly a quarter of Saudi Arabia’s crude oil exports. The importance of deepening ties in the energy sector is therefore a cornerstone of the bilateral relationship.

However, the discussions come at a time of stalled free trade negotiations between China and the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain. Free trade talks between China and the GCC began almost 20 years ago, but they have recently hit a roadblock. One of the main sticking points is Saudi Arabia’s concern over the impact of cheaper Chinese imports on its domestic industrial agenda.

During a separate meeting between Li and GCC Secretary General Jasem al-Budaiwi, the Chinese premier urged both sides to accelerate the stalled trade talks. Al-Budaiwi agreed on the importance of advancing the discussions and expressed hope that a resolution would be reached in the “near future.

China and Saudi Arabia agreed to expand cooperation

In addition to energy, Premier Li Qiang also stressed the need to broaden cooperation between China and Saudi Arabia in emerging fields such as new energy technologies and the green economy. This emphasis is in line with China’s broader foreign policy goals of positioning itself as a global leader in renewable energy and sustainable development. Saudi Arabia, for its part, is also making strides in these areas as it looks to reduce its dependence on oil and invest in renewable energy sources such as solar and wind power.

“Li said the two sides should further expand the scale of bilateral trade, deepen cooperation in fields from oil and gas, petrochemicals and infrastructure to emerging fields such as new energy and the green economy,” according to a statement from China’s Foreign Ministry.

#فيديو_واس | سمو #ولي_العهد ورئيس مجلس الدولة بجمهورية الصين الشعبية يعقدان جلسة مباحثات رسمية.#الشراكة_السعودية_الصينية#واس pic.twitter.com/t8ITl6U9AG

— واس الأخبار الملكية (@spagov) September 11, 2024

Li’s comments reflect the importance both countries place on aligning their economic and environmental interests, particularly as Saudi Arabia embarks on ambitious mega-projects like the futuristic NEOM city, a $500 billion development in the desert that aims to be powered entirely by renewable energy. Analysts suggest that Saudi Arabia may seek Chinese investment or partnerships in these massive infrastructure projects, given China’s extensive experience in building large-scale, technologically advanced cities.

Beyond economic cooperation, Li’s visit to Saudi Arabia is also significant for its diplomatic implications. In recent years, China has increased its role as a key player in Middle Eastern geopolitics, positioning itself as a neutral actor in some of the region’s most intractable conflicts. Last year, China facilitated a historic rapprochement between Saudi Arabia and Iran, a move that was hailed as a major diplomatic breakthrough.

China has also taken a different approach from the United States on the Israeli-Palestinian conflict, advocating for a two-state solution while maintaining strong relations with both Israel and Palestine. In late July, Beijing hosted Palestinian leaders from rival factions, further solidifying its image as a potential mediator in the region.

For Saudi Arabia, fostering closer ties with China could provide a valuable counterbalance to its longstanding relationship with the United States, which has faced some strain in recent years over issues such as human rights and energy policy. While Saudi Arabia remains a key U.S. ally, particularly in the context of regional security, Crown Prince Mohammed has made it clear that he wants to diversify the kingdom’s international partnerships, with China playing a crucial role in this strategy.

In Riyadh, Chinese Premier Li Qiang also engaged with representatives from the Saudi business community and invited them to visit and explore opportunities in China.

Chinese Premier meets UAE leadership

As the second leg of his trip, Li arrived in Abu Dhabi on Thursday to strengthen ties with the United Arab Emirates (UAE). Li’s visit follows his two-day trip to Saudi Arabia. Upon arrival, he highlighted the close cooperation between China and the UAE, stating that both nations have “maintained close communication and coordination on multilateral platforms” to contribute to regional and global stability.

Li’s visit coincides with the 40th anniversary of diplomatic relations between China and the UAE. He expressed his desire to “deepen and solidify” their comprehensive strategic partnership and expand cooperation in various fields. In Riyadh, Li co-chaired a meeting with Saudi Crown Prince Mohammed bin Salman, emphasizing that Saudi Arabia is a “priority” for China’s Middle East diplomacy.

Li also referenced UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to China in May, which has “drawn a new blueprint for China-UAE ties.” The UAE is China’s largest export market in the Gulf, with bilateral trade reaching $95 billion in 2023. Both countries are collaborating on several initiatives under China’s Belt and Road Initiative, including industrial projects and the world’s first artificial intelligence university in Abu Dhabi.

.@HHShkMohd receives Li Qiang, Premier of the State Council of China, at Qasr Al Watan in Abu Dhabi, at the start of his official visit to the UAE. pic.twitter.com/jVnpvDfbin

— Dubai Media Office (@DXBMediaOffice) September 12, 2024