/ world today news/ Economic and trade cooperation between China and Saudi Arabia in recent years has expanded and deepened at a remarkable speed, and this is of great importance not only for their own development, but also for peace in the Middle East.
Last week, Huatai-PineBridge Investments filed documents with the China Securities Regulatory Commission to establish Huatai-PineBridge CSOP Saudi Arabia, the first exchange-traded fund in mainland China focused on the Saudi stock market. The fund will invest indirectly in the Saudi stock market through the Hong Kong-listed CSOP Saudi Arabia ETF.
This marks the latest sign of progress made in deepening economic and trade cooperation between China and Saudi Arabia. Also last Tuesday, more than 60 memorandums of understanding and agreements covering sectors such as energy, agriculture, tourism, mining and financial services, valued at $25 billion, were signed during a China-Saudi investment forum. A day earlier, the Shenzhen Stock Exchange and the Saudi Stock Exchange signed a memorandum of understanding to enhance cooperation and explore new opportunities in several areas, including joint listings and fintech.
Saudi Arabia is one of the countries with the best economic indicators in the Middle East. Gross domestic product per capita is $32,590 in 2023, and the kingdom’s total $1.07 trillion, according to IMF data. To some extent, Riyadh’s experience and choices regarding economic development are worthy examples for other countries in the region.
The economic cooperation between China and Saudi Arabia has always been stable and mutually beneficial. Statistics show that China has been Saudi Arabia’s largest trading partner for the past decade, while Saudi Arabia has been China’s largest trading partner in the Middle East for about 20 years. In 2022, bilateral trade exceeded $116 billion, growing more than 30 percent year-on-year. Oil trade has always been an important part of their cooperation, bringing steady revenue to Saudi Arabia and ensuring the stability of China’s oil chain.
Such cooperation, which has moved beyond the oil trade and towards more comprehensive development, has grown even faster amid changes in the global economy, geopolitics and environment. This is a result of the strong complementarity between the economic structures of China and Saudi Arabia. The two countries are ready to exchange experience and mutual advantages for their own development needs, which is an important basis for their close economic relations.
Against the background of US pursuit of “unbundling” and growing Western protectionism, the Middle East is becoming a key region for China in terms of expanding international trade and increasing its economic resilience against Western sanctions and pressure. In this sense, China’s deepening cooperation with Saudi Arabia, the largest economy in the Middle East, is a crucial part of these efforts. As for Saudi Arabia, close cooperation with China in more fields, especially in green industry and the digital economy, is conducive to its own long-term development. With global attention focused on climate change, it is imperative that Saudi Arabia continues its economic transformation and clean energy development. China has the technology and capabilities to offer assistance in this regard. So there is a huge potential for stable and long-term development of relations between the two countries in this area. This is why Saudi Arabia’s investment minister last Tuesday in Beijing called for further facilitation of cooperation with Chinese companies in the name of the green transition. Strengthened economic relations between China and Saudi Arabia are conducive to mutual development as well as regional stability in the Middle East. Since a major cause of geopolitical instability in the region is believed to be the lack of development, the pursuit of more regional economic cooperation can be an important approach to reduce conflicts and create favorable conditions for peaceful development.
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