China and Saudi Arabia seal US$28 billion in deals
- Agreements include plans for Aramco-Norinco joint venture for refining and petrochemical complex
Saudi Arabia signed US$28 billion worth of economic cooperation agreements with China on Friday as its crown prince, Mohammed bin Salman, met top Chinese leaders in Beijing.
“China is a good friend and partner to Saudi Arabia,” Chinese President Xi Jinping told Salman at the Great Hall of People. “The special nature of our bilateral relationship reflects the efforts you have made.”
The crown prince also said Saudi Arabia supported China’s “Belt and Road Initiative” and respected Beijing’s counterterrorism efforts.
“The Silk Road initiative and China’s strategic orientation are very much in line with the kingdom’s Vision 2030,” state news agency Saudi Press Agency quoted Salman as saying, referring to Saudi Arabia’s economic reform programme.
Trade between China and Saudi Arabia rose by 32 per cent last year, he said.
According to SPA, 35 economic cooperation agreements were signed at a joint investment forum held by Saudi Arabia’s investment agency during the visit.
Among them was a deal between Aramco and Chinese defence conglomerate Norinco to develop a US$10 billion refining and petrochemical complex in the northeastern Chinese city of Panjin.
China wants more hi-tech cooperation with Saudi Arabia, foreign minister Wang Yi says
Aramco said that as part of the project the partners would form a company called Huajin Aramco Petrochemical to build a refinery that could produce 300,000 barrels of oil per day.
Salman and his delegation arrived on Thursday for a two-day trip after visiting India and Pakistan.
The group also met Vice-Premier Han Zheng and Foreign Minister Wang Yi in Beijing.
In his meeting with the crown prince on Friday, Han said the two countries should work together on counterterrorism, law enforcement, security and deradicalisation, according to state news agency Xinhua.
A day earlier, Wang told Saudi Foreign Minister Adel al-Jubeir that China supported Saudi Arabia’s efforts to diversify its economy and was willing to strengthen hi-tech cooperation.
“All countries in the world have the right to develop, and Saudi Arabia is an emerging market country with enormous potential,” Wang said.
Xi has made stepping up China’s presence in the Middle East a key foreign policy objective, despite its traditional low-key role there.
But China has had to step carefully in relations with Riyadh, since Beijing also has close ties with Saudi Arabia’s regional foe Iran.
Saudi Crown Prince Mohammed bin Salman must walk geopolitical tightrope during Asian tour
Earlier in the week, top Chinese leaders including Xi and Wang also received an Iranian delegation headed by Foreign Minister Mohammad Javad Zarif in Beijing.
According to Xinhua, Wang told Zarif that China wanted to “deepen strategic trust” with Tehran.
Li Weijian, a Middle East expert at the Shanghai Institutes for International Studies, said China’s policy in the Middle East was not to side with any party.
“Simultaneously hosting Iran and Saudi delegations within a week has sent out the exact message that China has no interest in siding [with one country or the other],” Li said.
He said that approach could enable China to mediate between the two countries if necessary.
Additional reporting by Reuters
