China-Saudi 2024 cooperation focuses on energy, trade, and future free trade agreements

Chinese Premier Li Qiang met with Saudi Crown Prince Mohammed Bin Salman in Riyadh on Wednesday to discuss broadening China-Saudi 2024 cooperation, with a focus on energy, investment, and trade. The high-level discussions, which included other senior officials from both countries, emphasized expanding bilateral relations in critical sectors.

During the talks, Premier Li encouraged China and the Gulf Cooperation Council (GCC), a regional bloc that includes Saudi Arabia and the UAE, to fast-track ongoing free trade negotiations. Li highlighted the importance of deepening partnerships in areas like oil, gas, petrochemicals, and infrastructure, as well as new and emerging industries such as new energy and the green economy.

Despite the positive tone of the discussions, Saudi Arabia has voiced concerns about cheap Chinese imports potentially undercutting its domestic manufacturing initiatives. According to sources, free trade negotiations between Saudi Arabia and China have stalled due to worries that lower-cost Chinese products could harm Saudi Arabia’s efforts to build a robust industrial base. The talks have been in progress for nearly 20 years but are now at a critical point, as both sides push for a final resolution. The China-Saudi 2024 cooperation efforts remain focused on finding a balanced agreement that benefits both economies without compromising Saudi Arabia’s industrial goals.

GCC Secretary General Jasem al-Budaiwi echoed the need to finalize the negotiations during a meeting with Premier Li earlier in the day, calling for a conclusion in the “near future.” The Chinese state news agency Xinhua and the Saudi state news agency SPA both reported on the urgency of moving forward with these trade agreements. As part of the China-Saudi 2024 cooperation efforts, both sides are committed to accelerating progress on these critical trade deals to strengthen economic ties in the region.

Premier Li also reiterated China’s willingness to work closely with Saudi Arabia on global and regional affairs to promote peace, security, and stability. These discussions come as Saudi Arabia aims to diversify its economy away from oil and embrace industrial and technological growth, a strategy that could be influenced by its trading relationship with China.

After concluding discussions on China-Saudi 2024 cooperation in Riyadh, Premier Li travelled to the United Arab Emirates, where he is expected to hold further talks with UAE leaders, including Vice President and Prime Minister Sheikh Mohammed.

Analysis

Political: The meeting between Premier Li Qiang and Crown Prince Mohammed Bin Salman underscores the growing political ties between China and Saudi Arabia. Both nations have increasingly aligned themselves on the global stage, and this meeting serves to further consolidate their partnership. For China, stronger ties with the Gulf region bolster its influence in global energy markets, while Saudi Arabia looks to China as a key ally in its Vision 2030 initiative, which aims to reduce reliance on oil and diversify its economy. This relationship also enhances Saudi Arabia’s diplomatic leverage as it navigates a shifting geopolitical landscape in the Middle East.

Social: From a societal perspective, the strengthening of China-Saudi relations reflects broader trends of global integration and cooperation. As Saudi Arabia seeks to transform its economy, partnerships with nations like China are crucial for sharing technology, knowledge, and resources that can help accelerate progress. On the social front, the collaboration may open up new opportunities for employment and skill development in sectors like renewable energy and infrastructure, helping Saudi citizens transition into new industries as the kingdom diversifies its economy.

Racial: Though racial dynamics were not explicitly discussed in the meeting, the cooperation between China and Saudi Arabia represents a bridge between two major non-Western powers, challenging the traditional dominance of Western nations in global trade and political alliances. The deepening of these ties could encourage more inclusive and diverse global economic partnerships, reducing reliance on historically Eurocentric trade systems. By fostering partnerships across Asia and the Middle East, both China and Saudi Arabia signal the emergence of a more multipolar world order.

Gender: While the discussion between Premier Li and Crown Prince Mohammed Bin Salman did not focus on gender issues, the expanding economic relationship between China and Saudi Arabia may have indirect implications for gender dynamics, especially within Saudi Arabia. As the kingdom pushes forward with its Vision 2030 reforms, which include increasing women’s participation in the workforce, partnerships with countries like China could facilitate access to new technologies and industries where women can play significant roles. The focus on sectors like green energy and technology may provide more inclusive employment opportunities for both men and women in Saudi Arabia.

Economic: The economic implications of this meeting are vast, with energy, trade, and investment at the forefront of the discussions. China’s growing demand for energy positions Saudi Arabia as a critical supplier of oil and gas, while Saudi Arabia looks to Chinese expertise and investment in infrastructure and technology to advance its domestic industries. However, the stalled free trade negotiations due to Saudi concerns over cheap Chinese imports demonstrate the delicate balance between fostering trade and protecting domestic industries.

Saudi Arabia’s push to grow its manufacturing capabilities is central to its Vision 2030 plan, and concerns that an influx of cheaper Chinese goods could undercut local industries have led to the impasse. Both sides will need to find common ground on trade terms that allow for growth without compromising the long-term objectives of either country.

China, on the other hand, sees the Gulf region as a critical market for its exports and a key partner in energy. Expanding trade agreements and deepening bilateral cooperation will be essential for China to maintain its economic momentum, especially in fields like green energy where both nations see growth potential.

In the broader economic context, the partnership between China and Saudi Arabia highlights the shift toward greater cooperation between developing economies, reducing their dependency on Western markets and capital. As both nations continue to expand their regional and global influence, these economic ties are likely to reshape trade networks, with ripple effects felt in international markets.