BEIJING, Aug 27 – China’s commerce minister, Wang Wentao, has urged closer ties in new energy and capital markets in talks with Saudi Arabia’s visiting investment minister.
The move is part of China’s efforts to break away from a two-front trade war with the US and EU, which have imposed tariffs on Chinese goods due to concerns about their low cost and potential market flooding.
Wang discussed aligning China’s Belt and Road infrastructure initiative with Saudi Crown Prince Mohammed Bin Salman’s “Vision 2030” plan, which aims to reduce Saudi Arabia’s dependence on oil. Negotiations between China and the Gulf Cooperation Council have stalled due to concerns that cheap Chinese imports could hinder Saudi Arabia’s industrial powerhouse plans.
Despite all six Gulf countries engaging with the Belt and Road Initiative, none of the Gulf heads of state attended a 2023 summit in Beijing, which analysts view as a snub. Wang also expressed potential for expanding bilateral trade volumes, enhancing two-way investment cooperation, and broadening collaboration in areas such as new energy, industrial supply chains, and capital markets. Saudi Arabia maintains a trade surplus with China, with China selling over $50 billion worth of goods to the country last year.
With information from Reuters