Date
26 May 2017
China's President Xi Jinping (left) and Saudi Arabia's King Salman bin Abdulaziz Al-Saud attend an event at the National Museum in Beijing on Thursday. Photo: Reuters
China's President Xi Jinping (left) and Saudi Arabia's King Salman bin Abdulaziz Al-Saud attend an event at the National Museum in Beijing on Thursday. Photo: Reuters

China, Saudi Arabia eye US$65 billion in deals

Saudi Arabia’s King Salman oversaw the signing of deals worth as much as US$65 billion on the first day of a visit to Beijing on Thursday.

The deals included a memorandum of understanding (MoU) between giant state oil firm Saudi Aramco and China North Industries Group Corp (Norinco), to look into building refining and chemical plants in China, Reuters reports.

Saudi Basic Industries Corp. (SABIC) and Sinopec, which already jointly run a chemical complex in Tianjin, also agreed to develop petrochemical projects in both China and Saudi Arabia.

Saudi Arabia’s octogenarian monarch, who has overseen the launch of an ambitious economic reform plan since his accession two years ago, is on a month-long Asian tour.

The visits to countries that are some of world’s fastest growing importers of Saudi oil aim to promote investment opportunities in the kingdom, including the sale of a stake in Aramco.

Saudi Arabia has sought to boost oil sales to China, the world’s second-largest oil market, after losing market share to Russia last year, by working mostly with China’s top three state oil firms.

In Beijing’s Great Hall of the People, President Xi Jinping told Salman that China is a reliable and stable oil export market and the two countries should deepen cooperation.

“For a long time, China and Islamic countries have respected each other and had win-win cooperation, and have created a model of the peaceful coexistence of different cultures,” Xi said, according to China’s Foreign Ministry.

Salman told Xi he hoped China could play an even greater role in Middle East affairs, the ministry added.

“Saudi Arabia is willing to work hard with China to promote global and regional peace, security and prosperity,” Salman said.

Deputy Chinese Foreign Minister Zhang Ming said the memorandums of understanding and letters of intent were potentially worth about US$65 billion, involving everything from energy to space.

“President Xi Jinping and King Salman are old friends,” Zhang said. “Practical cooperation between China and Saudi Arabia has already made major achievements, and has huge potential.”

A statement later posted on Saudi state news agency SPA said the documents included an MoU for the kingdom to participate in China’s Chang E-4 moon mission and a partnership agreement for manufacturing drones.

Besides the MoUs agreed between the two governments, Saudi and Chinese companies signed 21 deals, ranging from exploring investments in oil and petrochemical plants to ecommerce and co-operating in renewable energy markets.

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RC/CG

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