Friends with aligned development strategies

Integration of Belt and Road Initiative with Vision 2030 boosts economies of China and Saudi Arabia

China and Saudi Arabia are advancing the integration of the Belt and Road Initiative with Saudi Arabia's Vision 2030 economic diversification strategy, a collaboration that has achieved significant results.

This partnership is injecting momentum into the economic development of both countries, according to experts and business leaders from China and Saudi Arabia.

This year marks the 35th anniversary of the establishment of diplomatic relations between China and Saudi Arabia. They have been strengthening strategic mutual trust and conducting pragmatic cooperation and cultural exchanges. Their ties have become increasingly close in multilateral collaboration programs, said Chang Hua, Chinese ambassador to Saudi Arabia.

The two countries are natural partners with aligned development strategies, similar development philosophies and complementary strengths, Chang wrote in an article published in the Asharq Al-Awsat newspaper in October.

Since the establishment of diplomatic relations in 1990, China and Saudi Arabia have maintained close cooperation in fields such as energy and infrastructure. In recent years, bilateral cooperation has expanded, particularly in areas such as automobiles, renewable energy and tourism, where achievements have been made, he said.

Shining example

One of the recent examples is the China (Beijing)-Saudi Arabia Forum on Agricultural Industry and Sustainable Development held in Beijing in May.

The event attracted more than 600 government and business representatives from both countries, with over 60 Saudi companies participating.

More than 70 cooperation agreements were signed between Chinese and Saudi enterprises and institutions at the forum, with a total value exceeding $4 billion. The deals cover areas such as green technology applications; smart equipment; biotechnology and seed research and development; and cross-border supply chains.

Agriculture, particularly food security, is a core component of Saudi Arabia's Vision 2030. China has achieved significant progress in agricultural technology, and Saudi enterprises are keen to collaborate with Chinese partners, Osama Kokandy, a member of the Saudi-Chinese Business Council, told the 21st Century Business Herald newspaper.

He said that the private sectors of both countries could play a role in advancing the comprehensive strategic partnership, calling for businesses to deepen cooperation in agriculture, manufacturing, energy and mining industries.

China is at the forefront of manufacturing and artificial intelligence, he said, and he welcomes Chinese companies to invest in Saudi Arabia, bringing advanced technologies and management expertise. "Through capacity cooperation, these investments would significantly contribute to Saudi Arabia's economic growth," said Kokandy.

Marked progress

The two countries have made substantial progress in pragmatic cooperation across various fields in recent years. China is Saudi Arabia's largest trading partner and Saudi Arabia is China's largest trading partner in the Middle East.

Chinese customs data show that the trade volume between the two countries reached $107.53 billion in 2024, with China's exports amounting to $50.05 billion and imports worth $57.48 billion.

China's exports to Saudi Arabia mainly include mechanical and electrical products; metals and their products; automobiles and ships; and textiles and garments. Meanwhile, China's main imports from Saudi Arabia are crude oil and petrochemical products. Saudi Arabia has long been China's largest supplier of crude oil, with China importing nearly 78.64 million metric tons of crude oil from there in 2024.

There are many factors driving the accelerated development of Saudi-Chinese economic and trade cooperation, with supply and demand being the most fundamental forces, Kokandy said. The Saudi market has a strong demand for Chinese products, while the Chinese market has shown great interest in Saudi products, he added.

Primary partner

Saudi Arabian Ambassador to China Abdulrahman Al-Harbi told the Global Times newspaper that China is Saudi Arabia's primary partner in cooperation.

He noted that Saudi Arabia is currently seeking to achieve economic diversification and aims to become an industrial hub in the Middle East. Cooperation with China will play a crucial role in this process.

Mohammed Y. Al Qahtani, downstream president of Saudi Aramco, said that China boasts a stable and efficient system for industry and supply chains. The country is rapidly advancing new quality productive forces, with future development focused on technological innovation and sustainability.

The company is optimistic about the prospects of China's high-quality economic growth, he added.

Saudi Aramco is a globally integrated energy and chemicals company with downstream operations focused on energy trading, petrochemical production and retail business. The company has established a long-standing partnership with Chinese collaborators, according to Qahtani.

China's vast market, comprehensive manufacturing system, abundant labor resources and talent pool provide opportunities for foreign business growth in the country, he said.

Saudi Aramco considers various factors such as energy demand, economic growth, population size and living standards when formulating its foreign investment strategy, he said. "From downstream integrated manufacturing to advanced emission reduction technologies and the digital field, China is one of our most important strategic partners."

"Energy cooperation has become the main area of collaboration between Saudi Aramco and China, but our vision for future cooperation extends far beyond this," Qahtani said.

He noted that the China-proposed BRI dovetails with Saudi Arabia's Vision 2030. Saudi Arabia is advancing the initiative, aiming to enhance connectivity and trade between China and other regions including Europe and Africa.

Within the high-quality framework of the BRI, cooperation between Saudi Arabia and China has been continuously upgraded and extended to the digital and sustainable development sectors. Both sides will leverage technologies related to digital communication and smart cities, relying on telecommunications infrastructure and e-commerce platforms to boost connectivity and economic and social development, he said.

Looking ahead, the prospects for Saudi-Chinese cooperation are broad and full of opportunities, he said. "Both parties will continue to strive to further integrate the high-quality development of the BRI with Saudi Arabia's Vision 2030, fostering mutual development and prosperity."