The economic relations between Saudi Arabia and China are rapidly growing stronger, with China being the second largest global economy and one of the largest consumer and manufacturing markets in the world. According to the international trade report for the first quarter of 2024 issued by the General Authority for Statistics (GASTAT), China is the first destination for Saudi exports, accounting for 15 percent of total exports. This reflects the volume of economic and trade cooperation between the two countries, with the value of Saudi non-oil exports to China exceeding SR176 billion over the past five years from 2019 to 2023.
The most notable achievement of this bilateral cooperation is in the export of chemicals, polymers, and metals from Saudi Arabia to China. The transport and logistics sector also plays a significant role in increasing non-oil exports, with the export of services to China reaching a value of SR182 billion in 2023, a 40 percent increase compared to the previous year. The recovery of the travel sector, which saw a surge of 43 percent, contributed to this growth, with the travel sector constituting 74 percent of total services exports, followed by the transport sector and communication services.
Efforts to boost Saudi exports to China are part of Saudi Arabia’s broader strategy to strengthen relations with China. The meeting between Custodian of the Two Holy Mosques King Salman and Chinese President Xi Jinping in 2016 in Riyadh led to the signing of several agreements and memorandums of understanding, including cooperation on the Belt and Road Initiative (BRI) and the 21st Century Maritime Silk Road. The visit of Crown Prince and Prime Minister Mohammed bin Salman to China in 2019 further strengthened the Saudi-Chinese relations, with summit level meetings focusing on enhancing cooperation in various fields.
The strategic partnership between Saudi Arabia and China has significant implications for both countries, as well as the global economy. With China being a key player in the global market, strengthening economic ties with the country offers numerous opportunities for Saudi Arabia to expand its export market and diversify its economy. The increase in non-oil exports to China is a positive sign of the growing economic cooperation between the two countries, with the potential for further growth in the future.
In addition to the economic benefits, the strong relationship between Saudi Arabia and China also has political and strategic implications. Both countries have a shared interest in promoting regional stability and security, as well as advancing mutual interests in various international forums. The depth of the relations between the two countries is evident in the frequent high-level visits and exchanges, which serve to further strengthen ties and promote cooperation on various fronts.
Overall, the growing economic relations between Saudi Arabia and China highlight the importance of fostering strong partnerships with key global players. As China continues to play a significant role in the global economy, Saudi Arabia’s efforts to enhance cooperation and expand trade relations with the country are crucial for promoting economic growth and diversification. The ongoing efforts to boost exports to China and strengthen bilateral ties are key steps towards realizing the full potential of the Saudi-Chinese partnership and reaping the benefits of increased economic cooperation.
