The Middle East is an extremely important region in Chinese foreign policy. China, which has a close dialogue with many countries in the region, participated at the Presidential level in the China-Arab Countries Summit and the China-Gulf Cooperation Organization Summit held between 7-9 December 2022 to improve its relations. Within the scope of this visit, Chinese President Xi Jinping first met with King Salman bin Abdulaziz of Saudi Arabia. The meeting of the two leaders is important in terms of strengthening the relations between China and Saudi Arabia.
Xi last visited Saudi Arabia as part of his Middle East tour between 19-23 January 2016. Xi signed 52 cooperation texts with Arab countries during the tour, and 14 of these collaborations were with Saudi Arabia. The most important issue of cooperation is the delivery of the construction of the petrochemical refinery of Yanbu Aramco Sinopec Refining Company (YASREF) in Yanbu city of Saudi Arabia to China. Because YASREF is China’s largest investment project in Saudi Arabia.[1]
The meeting, which took place on 7 December 2022, offers new opportunities to both countries. Official channels of Saudi Arabia stated that an agreement worth 29 billion dollars will be signed at the summit. At the same time, it was stated that upon the invitation of Saudi King Salman Bin Abdulaziz, Xi visited Saudi Arabia to strengthen the historical ties and strategic partnership between the two countries.[2] It should be asked what are the issues that come to the fore in the close relations between China and Saudi Arabia, and what is the cooperation between the two countries based on?
The close relations developed on the Beijing-Riyadh line have many dimensions. The first of these is energy security. Since the 1990s, the Beijing administration has been looking at the Middle East geography with the aim of “securing the energy supply.” Beijing’s energy security policy is closely related to the growth of the Chinese economy, the increase of the welfare of the people, the modernization of the military and the stabilization of the regime.[3] Therefore, the continuity of cooperation in the field of energy with Saudi Arabia, which has 17% of the world’s petrol, is of vital importance for China.[4] Currently, China’s largest petrol supplier is Saudi Arabia.[5] For Saudi Arabia, China is the most strategic market for petrol exports. The Riyadh administration, especially after the terrorist attacks of September 11, 2001, tended to balance its relations with the great powers and adopted the “Look to the East” policy.[6] As a matter of fact, on December 7, 2022, Saudi Arabian Minister of Energy, Prince Abdulaziz bin Salman, said, “Cooperation between China, the world’s largest energy consumer, and Saudi Arabia, the world’s largest petrol exporter, helps maintain global petrol market stability.” He emphasized that the energy relationship between the two countries is complementary.[7]
Another prominent issue between the two countries is the Belt-Road Project. Within the framework of the project announced by Xi in 2013, the Middle East has become even more valuable in the eyes of China with its strategic location. For this reason, while Beijing’s policies towards the Middle East have traditionally been in the context of energy security; after 2010, they started to include more different factors.[8]
In addition to making China a stronger network economically, the Belt-Road Project also offers important opportunities for Middle Eastern countries. The Middle East and especially the Gulf countries face various risks in terms of sustainability due to their economies based on the petrol industry. The fact that petrol and natural gas reserves will run out one day has led the countries of the region to shift their economies to new areas.[9] It can be said that, in the case of Saudi Arabia, considering the Vision 2030 Document, which addresses issues such as encouraging investment in Riyadh’s new infrastructure and industrial cities, increasing the power of industrial production and expanding the downstream value of the petrochemical sector, the Belt-Road Project overlaps with Saudi Arabia’s goals.[10]
Another prominent issue in China-Saudi Arabian relations is trade. Imports of Saudi products constitute a significant part of China’s manufacturing for global markets. Saudi Arabia’s imports from China help to meet Saudi Arabia’s growing need for economic and social development.[11] Trade relations on the Beijing-Riyadh line have been growing rapidly since the 1990s. China’s exports to Saudi Arabia were 905 million dollars in 1995; in 2020, it increased to 31.8 billion dollars, increasing at an annual rate of 15.3%. On the other hand, Saudi Arabia’s exports to China increased from 393 million dollars in 1995 to 33.4 billion dollars in 2020, an annual increase of 19.4%.[12]
In this respect, the signing of a Free Trade Agreement (FTA) between China and the Gulf Cooperation Organization to remove trade barriers has been an issue that has been discussed for a long time. Removing barriers to trade offers significant mutual benefits. With the signing of the FTA, trade between China and Arab countries will increase even more.[13]
Bilateral relations with China are of strategic importance for the Middle East in general and Saudi Arabia in particular. Especially after the invasion of Iraq in 2003, when the US started to lose its influence in the Middle East, China came to the fore as a new global partner for the countries of the region.[14] In the recent period, US-Saudi Arabian relations have been strained due to the US’s criticisms of Saudi Arabia and Riyadh’s support for Moscow in the debate on the restriction of petrol production.[15] Considering all these; in addition to priorities such as energy, trade and economy, it can be argued that the development in relations between China and Saudi Arabia is also related to Riyadh’s search for an alternative to the US. In this sense, China’s proposal to price petrol in yuan in the negotiations is a great departure. As it is known, petrol is dollar indexed and priced accordingly. Pricing petrol in yuan could be a move to erode US global dominance.[16] As a result, it is possible to say that China-Saudi Arabia relations are progressing within the framework of a win-win policy.
[1] Hatice Çelik, “Çin’in Ortadoğu Politikası: Süreklilik ve Değişim”, Liberal Düşünce Dergisi, 25 (97), 2020, p.42.
[2] “China’s Xi arrives in Saudi Arabia to ‘bolster ties’”, Aljazeera, https://www.aljazeera.com/news/2022/12/6/chinas-xi-to-visit-saudi-arabia-from-wednesday, (Date of Accesion: 08.12.2022).
[3] Ragıp Kutay Karaca, “Çin’in Değişen Enerji Stratejisinin Dış Politikasına Etkileri (1990–2010)”, Uluslararası İlişkiler Dergisi, 9 (33), 2012, p.93.
[4] “Saudi Arabia Facts and Figures”, OPEC, https://www.opec.org/opec_web/en/about_us/169.htm#:~:text=Saudi%20Arabia%20possesses%20around%2017,ore%2C%20gold%2C%20and%20copper, (Date of Accesion: 08.12.2022).
[5] “Top 15 Crude Petrol Suppliers to China”, World’s Top Exportes, https://www.worldstopexports.com/top-15-crude-petrol-suppliers-to-china/, (Date of Accesion: 08.12.2022).
[6] Naser al-Tamimi, China-Saudi Arabia Relations: Economic Partnership or Strategic Alliance?, HH Sheikh Nasser al-Mohammad al-Sabah Publication , Kuwait 2012, p. 3.
[7] Aljazeera, op. cit.
[8] Süleyman Erkan-Müge Yüce, “Çin Dış Politikasında Ortadoğu’nun Değişen Konumu: Arap Baharı Sonrası Bölgesel Gelişmeler Üzerinden Bir Analiz”, Bölgesel Araştırmalar Dergisi, 4(1), 2020, s. 13-14.
[9] Çelik, op. cit., p. 41.
[10] Dongmei When-Wenke Han, Deepening Cooperation Between Saudi Arabia and China, The King Abdullah Petroleum Studies and Research Center, Riyad 2019, p. 6.
[11] When-Han, op. cit., p. 4.
[12] “China and Saudi Arabia”, OEC, https://oec.world/en/profile/bilateral-country/chn/partner/sau, (Date of Accesion: 08.12.2022).
[13] “China-Arab Summit: What’s on the Table? Perhaps the Future of the Gulf”, Middle East Eye, https://www.middleeasteye.net/opinion/china-arab-summit-future-gulf-table, (Date of Accession: 08.12.2022).
[14] Erkan-Yüce, op. cit., p. 13-14.
[15] “Çin Lideri Şi Cinping, ‘Pekin-Arap İlişkilerinde Çığır Açan Dönüm Noktası’ için Suudi Arabistan’da”, Euronews, https://tr.euronews.com/2022/12/07/cin-lideri-si-cinping-pekin-arap-iliskilerinde-cigir-acan-donum-noktasi-icin-suudi-arabist, (Date of Accession: 08.12.2022).
[16] “China-Arab Summit…”, op. cit.
