Skip to content

Connecting business. Building understanding. Advancing peace.

China’s Technology Strategy Expands Across Gulf Industrial and Digital Sectors

China is increasingly integrating its new quality productive forces framework into Gulf diversification programs, spanning renewable energy, AI, and digital networks. Gulf sovereign wealth funds and technology firms are adjusting their investment strategies amid mounting U.S.-China technological competition and regional risks. Meanwhile, Chinese firms are expanding industrial footprints in Saudi Arabia, the UAE, and Oman.

Microchip on a circuit board bearing the flag of China
Photo: The Arab Gulf States Institute in Washington

According to an analysis by The Arab Gulf States Institute in Washington, China is leveraging its 'new quality productive forces' (NQPF) framework as an external economic tool to export technology ecosystems across the Gulf. This approach links renewable energy, advanced manufacturing, and digital infrastructure with Gulf diversification agendas.

Chinese solar manufacturers including LONGi, JinkoSolar, Trina Solar, and JA Solar have secured large-scale projects in the region, while partnerships involving JinkoSolar, TCL Zhonghuan, and Saudi Arabia's Public Investment Fund (PIF) support localized manufacturing. In the UAE, industrial zones such as Khalifa Port serve as platforms for Chinese high-tech firms, while battery manufacturer CATL is expanding in Saudi Arabia's energy storage and electric vehicle supply chains.

Digital and cloud infrastructure has also seen major expansion through Huawei, Alibaba Cloud, and FiberHome. Partnerships with regional telecommunications operators including the UAE's e& and du, alongside Saudi Arabia's stc and Zain, are deploying industrial internet, smart infrastructure, and AI solutions. In hydrogen, Chinese firms such as PowerChina and LONGi are participating in developments in Oman.

Financially, Gulf sovereign wealth funds including PIF, Mubadala, and the Qatar Investment Authority (QIA) are increasing exposure to Chinese technology, electric vehicle, and semiconductor sectors. However, the report notes that Gulf investors face mounting external pressures, including Washington's push to restrict Chinese involvement in telecommunications and advanced computing, alongside heightened regional security concerns.

Sources

The UECN Brief

Policy updates, China–UAE business news and industry insights, delivered to your inbox.

Language
Subscriptions

Double opt-in: we send a confirmation link. Unsubscribe at any time. Privacy