Global Courant
Saudi Arabia views China as an important partner in a multipolar world — and the two countries are only expected to grow closer as their common interests grow, Saudi Investment Minister Khalid Al-Falih told CNBC.
“This is, in a way, a multipolar world order that has emerged — it’s not emerging. China is a major player in that,” Al-Falih told CNBC’s Dan Murphy at the Arab-China Business Conference in Riyadh Tuesday, now in its 10th year.
A multipolar world in this context means a global system that is not dominated by the West or defined as a struggle between two great powers, as during the Cold War.
“We like to believe, and I think it has been proven, that the kingdom is an important part of this multipolar world that has emerged. And we are going to play our part, not only in developing our own economy, but in developing of our region, and spreading what we have in terms of development opportunities also to Africa, Central Asia, the Indian subcontinent,” he said. “And we believe that the economic cooperation between China and Saudi Arabia and the GCC (Gulf Cooperation Council) and the entire Arab region will be an important part of that.”
In the post-Cold War period, the United States existed as the preeminent world power, the strongest power on the planet in terms of economic, military, and geopolitical power. The rise of China and the BRICS (other emerging markets including Brazil, Russia, India and South Africa), as well as anger in many parts of the world over US-led wars and sanctions campaigns, led to increased calls for a world order in which power was more spread over different countries.
Saudi Arabia, in balancing its friendships with both China and the US, sees itself as part of that. The kingdom has also become a much more active global player, using its oil-driven financial power to boost its international trade and investment and gain influence around the world.
“I think we see significant opportunities for Chinese companies and Saudi companies to also invest internationally in third countries…in ways that will bring development to other developing countries. I think this summit represents an increasing trend towards southern south cooperation and partnership,” he said, referring to the global south, “because the south now has many centers of expertise in technology and capital, we are no longer dependent on the developed north, (like) in the previous world order. ‘
The more than 80-year-old relationship between Riyadh and Washington is often broadly summarized as one of oil for security. The US has military installations in Saudi Arabia, sells advanced weapons, and provides training and joint operations with the Saudi military.
But the relationship between the US and Saudi Arabia has come under strain in recent years, as the Biden administration tried unsuccessfully to sue the kingdom for its human rights violations and influence its oil production volumes.
Chinese President Xi Jinping (L) is welcomed by Crown Prince of Saudi Arabia Mohammed bin Salman Al Saud (R) at Yamamah Palace in Riyadh, Saudi Arabia, on December 8, 2022.
Anadolu Agency | Anadolu Agency | Getty Images
China, meanwhile, has been on the rise – especially economically – for years as Saudi Arabia’s most important trading partner and largest buyer of its oil. However, Riyadh’s relationship with Beijing is more functional and economic than strategic, meaning that the US role in the kingdom is unlikely to be supplanted any time soon.
However, Saudi Arabia has been buying more Chinese weapons in recent years, particularly those that Washington was unwilling to sell its Gulf ally, such as deadly drones. Technology transfers and Chinese infrastructure projects are also on the rise in the kingdom, as Saudi Crown Prince Mohammed bin Salman seeks to diversify his country’s alliances and make it more independent.
Chinese President Xi Jinping visited Saudi Arabia in December and the two countries signed a strategic partnership agreement that China’s foreign ministry called “a epoch-making milestone in the history of Sino-Arab relations” at the time.
Balance between Washington and Beijing
“I see an important shift from a trade relationship to a core investment relationship,” Al-Falih said of his country’s ties with Beijing.
“We are already making significant investments in China, mainly in oil refining and petrochemicals. But there have been other investments in technology by the PIF (Saudi Arabia’s sovereign wealth fund) and other private sector companies. But we should invest more in the future see world champions from Saudi Arabia heading to China to access a growing market of 1.4 billion high consumption consumers.”
Saudi Foreign Minister Faisal bin Farhan (R) accompanies US Secretary of State Antony Blinken as they arrive for a meeting with GCC ministers at the GCC Secretariat in Riyadh on June 7, 2023.
Fayez Nureldine | AFP | Getty Images
In particular, the Arab-China Conference was held just days after US Secretary of State Antony Blinken’s visit to Riyadh. Al-Falih shrugged off the idea that growing ties with China posed a threat to the US
“Saudi Arabia is becoming a partner of all major economies worldwide. And China is certainly a prominent one in that field,” he said.
“We have a fantastic relationship with the US, it has been part of our global relations since the founding of modern Saudi Arabia, that is known, and I believe it is very strong, as evidenced by President Biden’s visit last year. And I think the fact that Secretary of State Blinken was here last week only strengthens that strong bond.”
Noting that the US remains the kingdom’s largest foreign investor, he said: “I don’t see our relationship with the US, with China, as mutually exclusive. I think they’re basically complementary.”
“We don’t see disruptions and those relationships are happening,” the minister added. “But what determines our strategy is certainly our own interests, and those interests with China are strong and growing.”
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