Saudi Arabia deepens its relationship with China after the signing of a Huawei deal and other agreements as the United States continues to monitor the situation with Beijing.
The deal came as Chinese President Xi Jinping traveled to Riyadh for a three-day trip that underscored the constantly growing importance of Sino-Saudi relations. The visit was a clear message from Saudi Arabia that it would not take diktats from the American government.
China and Saudi Arabia
The first trip of the Beijing leader to Saudi Arabia in the last six years provides the Saudi Crown Prince and Prime Minister Mohammed bin Salman (MBS) a greater opportunity to expand his influence globally to become an increasingly important figure in international affairs.
The meetings this week between Chinese and Saudi officials are expected to prioritize the economic dimensions of the Sino-Saudi partnership. The Saudi Press Agency (SPA) revealed that the kingdom and China are set to sign agreements that are worth $29.6 billion.
The agreements will most likely add to trade, business, and investment relations between China and Saudi Arabia, which have greatly deepened in the last few years. The deals come as China is considered to be Saudi Arabia's top crude oil market and accounts for more than a quarter of all Saudi crude oil exports in 2021, as per Aljazeera.
The director of the Middle East-Asia Project at the Middle East Institute, John Calabrese, said during an interview that the export earnings support the Saudi government's maintenance of its "social bargain."
Furthermore, the earnings are significantly crucial for Saudi Vision 2030, which is Saudi Arabia's imposing economic diversification agenda. It includes with respect to the futuristic city of Neom, which is currently under construction.
According to Reuters, President Xi received a lavish welcome in Saudi Arabia and his car was escorted to the king's palace by members of the Saudi Royal Guard who were riding Arabian horses and carrying Chinese and Saudi flags. The Beijing leader later attended a welcome banquet to commemorate his arrival.
Huawei Deal
The situation comes as the United States is warily observing China's growing influence globally and American officials said that Xi's trip was an example of Beijing's attempts to exert its influence worldwide. They added that the situation does not change U.S. policy towards the Middle East.
Despite U.S. unease with Gulf allies over a potential security risk, a memorandum with China's Huawei Technologies was agreed upon. Huawei is known to have been building 5G networks in many Gulf states despite the concerns of American lawmakers.
On top of the Huawei deal, the two global leaders also discussed hydrogen energy, coordination between the kingdom's Vision 2039 and China's Belt and Road initiative, and about direct investment.
On Thursday, a signed article was published in the Saudi newspaper Al Riyadh, which noted that Chinese President Xi said that his latest visit to the Gulf state "will usher in a new era in China's relations with the Arab world, with Arab states of the Gulf, and with Saudi Arabia," CNN reported.
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