Saudi Arabia, China Partners Together in Expanding Energy Links with Economic Development

Saudi Arabia and China are bolstering ties in energy and economic policies as Beijing seeks to improve damaged relations with the US. The teaming up of these countries comes as the US loses hold in the Middle East, driving the Biden administration to desperate measures over oil cuts.

KSA and Beijing Signifies Closer Relationship

This conclusion comes after the remote conference help with Saudi Arabian Energy Minister Abdulaziz bin Salman and Chinese National Energy Administration director Zhang Jianhua last Friday, reported SCMP.

During the meeting, both officials signified a closer relationship regarding the energy supply chain via a regional hub. This would improve the reach of Chinese manufacturing by getting access to three continents. Another crucial point of discussion is cooperation and joint investments conducted under China's Belt and Road Initiative (BRI).

A key objective of the alliance would be to provide a long-term and dependable oil supply to normalize a global market that continues to experience unpredictability due to its complicated and mutable global context. The Saudi representative added that China would have a steadfast colleague and supplier of crucial crude oil supplies, noted Asharq Al-Awsat.

The Kingdom of Saudi Arabia is the most prolific oil producer, while China is its biggest customer for its oil.

In 2021, Chinese export of Saudi's petroleum would make up about 27% of these energy purchases, or about 1.75 million barrels a day. The Mercator Institute for China Studies, a German think tank, gave the data. Both nations established these energy ties way back in 2016, and since then, Saudi Arabia and China have affirmed cooperating in energy and economic development.

KSA was also the largest recipient of belt and road investment opportunities during the first half of this year, luring US $5.5 billion, according to a Fudan University report.

Coming November, the group of the Organization of Petroleum Exporting Countries and non-Opec allies will kick in the start of less oil production by 2 million barrels; to boost the oil market more.

Oil demand grows less the KSA wants to cut back than add more, but the US cannot believe its petrol crisis will worsen. Democrats are popping up and down before the US midterm elections.

Saudi Arabia Cuts Oil Production

When the Crown Prince Mohammed Bin Salman snubbed the US president's alleged request to apply oil cut by November, the US imposed consequence on the kingdom . They were threatened with no arms sale for a year but did not relent, citing France 24.

One view is that the KSA meeting with China is a break with the US, and it does not want the US as a close partner.

Li Shaoxian, a Middle East specialist at Ningxia University, said that Beijing and Riyadh would give import as the conflict in Ukraine rages. He added that Riyadh and Washington were bound to break, the US had more control, and Saudis wanted more options.

Russia and China are becoming more influential, and the Eurosphere is in shambles with the Vision 2030 plan is also in play. Joe Biden's threat to make KSA a pariah led to practically begging for oil.

Saudi Arabia and China are blitzing the US by connecting on energy and economic development that could make them dominant.