top of page

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

Writer: News Agency News Agency
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
Live: Heathrow CEO Faces Parliament Over Airport Fire Disruption | UK Politics
02:44:36

Live: Heathrow CEO Faces Parliament Over Airport Fire Disruption | UK Politics

Watch live as Heathrow CEO Thomas Woldbye testifies before the UK Parliament's Transport Committee on the fire that shut down Heathrow Airport for 18 hours. Lawmakers question National Grid and airport officials on lessons learned and future safeguards. Featuring Alice Delahunty, Nigel Wicking, and Eliane Algaard. SPEAKERS: Thomas Woldbye, Chief Executive, Heathrow Airport Ltd; Alice Delahunty, President, UK Electricity Transmission, National Grid; Nigel Wicking, Chief Executive, Heathrow Airline Operators' Committee Limited; Eliane Algaard, Operations Director, Scottish and Southern Electricity Networks #Heathrow #UKParliament #AirportFire #London #TransportCommittee #LiveNews #Aviation #NationalGrid #HeathrowCEO #BreakingNews Amaravati Today delivers real-time updates on global events, featuring live streams, in-depth explainers, factual insights, and expert analysis to keep you informed. #WorldNews #LiveUpdates #GlobalInsights #AmaravatiToday #News Subscribe to the Amaravati Today channel and tap the bell icon to receive notifications whenever we go live https://www.youtube.com/@Amaravati_Today_Official Follow Amaravati Today on x or Twitter: https://x.com/amaravati_today Follow Amaravati Today on Facebook: https://www.facebook.com/amaravatitoday Follow Amaravati Today on Instagram: https://www.instagram.com/stories/amaravatitodayofficial/ Follow Amaravati Today on Rumble: https://rumble.com/user/Amaravatitoday Follow Amaravati Today on Linkedin: https://www.linkedin.com/company/amaravati-today/ Follow Amaravati Today on WhatsApp: https://www.whatsapp.com/channel/0029VaHWoNe5q08TF4NFKv3d Website: https://www.amaravati.today/ Source: Reuters
Live:  Taiwan Defense Ministry News Conference on China Drills | South China Sea Tensions
01:46:09
LIVE: White House Press Briefing | Iran, Ukraine, Israel, Russia, China, Greenland, Taiwan, EU, NATO
51:54

LIVE: White House Press Briefing | Iran, Ukraine, Israel, Russia, China, Greenland, Taiwan, EU, NATO

Live from Washington, D.C.: The White House Press Secretary holds a briefing on key issues, including the live entertainment market, investment acceleration, border security, Iran threats, Ukraine-Russia talks, and NATO security. Stay tuned for the latest updates on U.S. policies and international affairs. #WhiteHouse #PressBriefing #WashingtonDC #USPolitics #LiveNews #NATO #Ukraine #Iran #TradeWar #Security #taiwan #southchinasea #russia #china #greenland #canada #iran #Israel #syria Amaravati Today delivers real-time updates on global events, featuring live streams, in-depth explainers, factual insights, and expert analysis to keep you informed. #WorldNews #LiveUpdates #GlobalInsights #AmaravatiToday #News Subscribe to the Amaravati Today channel and tap the bell icon to receive notifications whenever we go live https://www.youtube.com/@Amaravati_Today_Official Follow Amaravati Today on x or Twitter: https://x.com/amaravati_today Follow Amaravati Today on Facebook: https://www.facebook.com/amaravatitoday Follow Amaravati Today on Instagram: https://www.instagram.com/stories/amaravatitodayofficial/ Follow Amaravati Today on Rumble: https://rumble.com/user/Amaravatitoday Follow Amaravati Today on Linkedin: https://www.linkedin.com/company/amaravati-today/ Follow Amaravati Today on WhatsApp: https://www.whatsapp.com/channel/0029VaHWoNe5q08TF4NFKv3d Website: https://www.amaravati.today/ Source: Reuters
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