Saudi Arabia sees China as a key partner in a multipolar world – the 2 countries are only meant to maneuver closer together if their common interests grow, Saudi Investment Minister Khalid Al-Falih told CNBC.
“It’s, in a sense, a multipolar global order that has emerged – it isn’t emerging. China is a significant player in it,” Al-Falih told CNBC’s Dan Murphy during an Arab-Chinese business conference in Riyadh on Tuesday, now in its tenth yr.
A multipolar world on this context means a global system that isn’t dominated by the West or defined as a struggle between two major powers, as was the case through the Cold War.
“We wish to imagine, and I believe it has been proven, that the realm is an important part of this multipolar world that has emerged. And we intend to play our part, not only in developing our own economy, but in addition in developing our region and spreading what we’ve in terms of development opportunities, also in Africa, Central Asia, the Indian subcontinent,” he said. “We imagine that economic cooperation between China and Saudi Arabia and the GCC (Gulf Cooperation Council) and the complete Arab region will probably be a significant part of this.”
Within the post-Cold War era, the USA existed because the preeminent world power, the strongest power on the planet in terms of economic, military, and geopolitical power. The rise of China and the BRICS (other emerging markets including Brazil, Russia, India and South Africa), in addition to anger in lots of parts of the world over US-led wars and sanctions campaigns, have led to increased calls for a global order where power was more widely distributed amongst different countries.
Saudi Arabia, balancing its friendships with each China and the USA, sees itself as part of this. The dominion has also turn into a far more energetic global player, wielding its oil-fueled financial power to speed up its international trade and investment and gain influence across the world.
“I believe significantly, we see opportunities for Chinese and Saudi firms to also invest internationally in third countries… in a way that may bring development to other developing countries. I believe this peak signifies a growing trend towards south-south cooperation and partnerships,” he said, referring to the worldwide south, “because the south now has many centers of excellence in technology and capital, we are not depending on the developed north, [as] within the previous world order.
The greater than 80-year relationship between Riyadh and Washington is commonly summarized generally terms as oil for security. The US has military installments in Saudi Arabia, selling it advanced weapons and providing training and joint operations with the Saudi military.
But U.S.-Saudi relations have come under pressure in recent times because the Biden administration has tried to sue the dominion for human rights violations and to influence oil production volumes, but to no avail.
Chinese President Xi Jinping (left) greeted by Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud (right) on the Yamamah Palace in Riyadh, Saudi Arabia, December 8, 2022.
Anadolu Agency | Anadolu Agency | Getty Images
Meanwhile, China has been making strides for years – especially economically – as Saudi Arabia’s most important trading partner and largest buyer of its oil. Riyadh’s relationship with Beijing, nevertheless, is more functional and economic than strategic, meaning it’s unlikely to switch the U.S. role in the dominion anytime soon.
Nonetheless, Saudi Arabia has been buying more and more Chinese weapons in recent times, particularly people who Washington was reluctant to sell to its Gulf ally, like deadly drones. Technology transfers and Chinese infrastructure projects are also on the rise in the dominion as Saudi Crown Prince Mohammed bin Salman seeks to diversify his country’s alliances and make it more independent.
Chinese President Xi Jinping visited Saudi Arabia in December, and the 2 countries signed a strategic partnership agreement that China’s foreign ministry called “an epochal milestone within the history of Sino-Arab relations.”
Balancing Washington and Beijing
“I see a significant shift from a trade relationship to a basic investment relationship,” Al-Falih said of his country’s ties to Beijing.
“We are already investing heavily in China, mainly in oil refining and petrochemicals. However the PIF (Saudi Arabia’s sovereign wealth fund) and other private-sector firms have made other investments in technology. world champions from Saudi Arabia head to China to achieve access to a growing market of 1.4 billion high-consumption consumers.
Saudi Foreign Minister Faisal bin Farhan (right) escorts US Secretary of State Antony Blinken as they arrive for a meeting with GCC ministers on the GCC Secretariat in Riyadh on June 7, 2023.
Fayez Nureldine | AFP | Getty Images
It’s value noting that the Arab-Chinese conference took place just a few days after the visit of US Secretary of State Antony Blinken to Riyadh. Al-Falih shrugged off the concept that his growing ties to China posed a threat to the US
“Saudi Arabia will probably be a partner to all of the world’s major economies. And China is actually leading the way in which,” he said.
“We’ve a unbelievable relationship with the USA that has been part of our global relationship for the reason that founding of modern Saudi Arabia, which is well-known and I feel may be very strong, as demonstrated by President Biden’s visit last yr. And I believe the incontrovertible fact that Secretary Blinken was here last week only reinforces that strong connection.”
He noted that the US stays the dominion’s largest foreign investor, saying: “I do not see our relationship with the US, with China as mutually exclusive. I believe they really complement one another.”
“We don’t see disruptions and such relations,” added the minister. “But actually what defines our strategy is our own interests, and those with China are strong and growing.”