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China Expands Economic and Energy Cooperation With UAE and Saudi Arabia

Chinese Premier Li Qiang completed visits to Saudi Arabia and the UAE to strengthen ties across traditional energy, renewable technologies, and electric vehicles. Bilateral trade between China and the UAE reached a record 50 billion dollars in the first half of 2024. Discussions also addressed reviving negotiations for a China-GCC free trade agreement.

Photo: Business Today

Chinese Premier Li Qiang completed a four-day visit to Saudi Arabia and the United Arab Emirates, meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum, and Saudi Crown Prince Mohammed bin Salman. According to Middle East Briefing, discussions centered on expanding economic partnerships in oil and gas, renewable energy, electric vehicles, and the digital economy.

Bilateral trade between China and the UAE reached 50 billion dollars in the first half of 2024. Chinese investments in the UAE rose by over 16 percent to 1.3 billion dollars in the preceding year, accounting for 60 percent of China's total investment across Arab countries. In turn, UAE investments in China grew by 120 percent, making up 90 percent of all Arab capital invested into China in 2023.

Cooperation in the electric vehicle sector has seen Chinese manufacturers such as BYD and Nio enter the UAE market. The UAE also hosts the world's largest single-site solar power plant, established under Beijing's Belt and Road Initiative.

The diplomatic visits also revived deliberations regarding the long-pending China-Gulf Cooperation Council (GCC) free trade agreement, which negotiators view as a key framework to promote investment in green energy and advanced manufacturing.

Sources

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