top of page

China-Gulf free trade talks stall on Saudi industrial agenda, sources say

China-Gulf free trade talks stall on Saudi industrial agenda, sources say
Saudi Crown Prince Mohammed Bin Salman meets with Chinese President Xi Jinping in Riyadh, Saudi Arabia December 8, 2022. Bandar Algaloud/Courtesy of Saudi Royal Court/File Photo

DUBAI - Negotiations between China and an Arab bloc for a free trade agreement have stalled over concerns by Saudi Arabia that cheap Chinese imports could undermine its ambitions to transform the kingdom into an industrial powerhouse, sources say.


Saudi Arabia has backed renewed efforts over the past two years for the Gulf Cooperation Council (GCC), the Arab bloc which includes the kingdom, United Arab Emirates and Qatar, among others, to finally seal a long sought deal with China.


But five sources briefed on the negotiations said the sides were at an impasse over Saudi reservations with a list of goods put forward by Beijing to be exempt from Gulf import duties.


Saudi Arabia is worried that a wave of lower cost Chinese versions of products that it hopes to manufacture domestically would be damaging to its industrial agenda, the sources said.


Saud Arabia's government communication office, the GCC Secretariat and China's commerce ministry did not respond to Reuters requests for comment on the trade negotiations.


The kingdom, the world's biggest oil exporter, has a nascent manufacturing industry that the government hopes will one day make everything from computer chips to tires as part of a wider economic transformation plan to create a vibrant private sector.


Saudi Arabia is spending trillions of dollars developing its economy under that program, known as Vision 2030, driven by the country's de facto leader, Crown Prince Mohammed bin Salman.


Prince Mohammed wants Saudi Arabia to not only lessen its dependence on oil rents by creating a strong private sector but also to transform the kingdom into a major global business hub.


The industrial part of that transformation plan faces challenges even without competing with lower cost Chinese goods. That includes finding skilled workers among its citzens in a country where about 60% of the 32 million population are Saudi nationals.


To build its own manufacturing industry, Saudi Arabia is partnering with foreign firms, including from China, to develop local capabilities and manufacturing lines in the kingdom.


The sources said a China-Gulf trade deal was not off the table but that the Saudis and the Chinese would likely have to settle on some sort of compromise to see the deal finalised.


Gulf officials last October spoke of reaching a deal soon. China's Ambassador to Saudi Arabia Chen Weiqing was quoted by local media in January as saying that although progress had been made, there were difficult issues that needed to be resolved.


China and the GCC, which also includes Oman, Kuwait and Bahrain, started trade talks almost 20 years ago. But the loose political and economic Arab bloc has finalised very few deals. It signed a free trade agreement with South Korea in December.


China is a massive buyer of Gulf energy and in 2023 bilateral trade between China and the Gulf stood at $286.9 billion, according to Chinese customs data, with Saudi Arabia accounting for nearly 40% of trade between the Gulf and China.


China and the Gulf states have deepened economic cooperation in recent years, to the concern of the United States, which has long been the core security partner of the Gulf Arab states.


U.S. officials have increasingly sought to drive a wedge between the Gulf states and China, including issuing ultimatums to pick between American and Chinese technology.

Source: Reuters

コメント


Top Stories

Advertise Now (1).png
Thousands Pay Respects to Pope Francis at St. Peter’s Basilica | Vatican, Italy | AT World News LIVE
11:55:00

Thousands Pay Respects to Pope Francis at St. Peter’s Basilica | Vatican, Italy | AT World News LIVE

Thousands gather at St. Peter’s Basilica to pay their respects to Pope Francis, lying in state after passing away at age 88. A solemn procession, heartfelt prayers, and applause filled Vatican Square as faithful from around the world came to honor his legacy of compassion, inclusion, and humility. Funeral to be held Saturday. #PopeFrancis #Vatican #PapalFarewell #HolyFather #RomeNews #Christianity #CasaSantaMarta #FinalJourney #PopeFrancis #Vatican #StPetersBasilica #CatholicChurch #Rome #VaticanCity #Funeral #Faith #Pilgrimage #BreakingNews AT World News (Amaravati Today) is a news channel that provides the latest updates on world affairs and sports events. It covers a wide range of topics, including international politics, major global incidents, and sports highlights #atworldnews #atworld #WorldNews #AmaravatiToday #News #InternationalNews #GlobalNews #Politics #Sports Subscribe to the AT World News channel and tap the bell icon to receive notifications whenever we go live https://www.youtube.com/@atnewsroom Follow AT World News on x or Twitter: https://x.com/atglobalwire Follow AT World News on Facebook: https://www.facebook.com/atnewsroom Follow AT World News on Instagram: https://www.instagram.com/atnewsroom/ Follow AT World News on Rumble: https://rumble.com/c/atnewsroom Follow AT World News on Linkedin: https://www.linkedin.com/company/atnewsroom Follow AT World News on WhatsApp: https://www.whatsapp.com/channel/0029VaHWoNe5q08TF4NFKv3d Website: https://www.amaravati.today/
9.png
Live Streams | Facts | Analysis | Explainers | Breaking News

Get in Touch

Manikondu Pvt Ltd
SY. 130P & 115/1P, ISB Rd
Financial District, Gachibowli
Hyderabad, India 500032
letstalk {at} amaravati (dot) today

Follow us on

  • X
  • LinkedIn
  • Youtube
  • Facebook
  • Instagram

© 2024 by Amaravati Today | Privacy Policy | Imprint & Dsiclaimer | CIN: U70200TS2024PTC184435

bottom of page