Reference News Network, November 24 report: The German newspaper "Handelsblatt" website published an article titled "How China and Saudi Arabia Strategically Expand Their Alliance" on November 20, authored by Martin Benninghoff and Inga Rog. Excerpts are as follows:

This April, the groundbreaking ceremony for the Sino-Saudi International Cooperation Industrial Park was held in Chongyu, China. Located not far from Shanghai, this park will be built here as a symbol of deepened cooperation between China and Saudi Arabia.

The park is invested with 650 million yuan, planning to build 100,000 square meters of trade, production, and R&D space, serving as a key platform to closely link the industrial chains of the two countries. However, under the shadow of the U.S.-China competition, this project also involves political rivalry between the two major powers:

The United States is trying to consolidate its sphere of influence in the Middle East, while China positions itself as an indispensable partner for Saudi Arabia.

Saudi is maneuvering between the U.S. and China - in military and security policies, the country remains highly tied to the U.S., but at the same time, it is strengthening economic and technological ties with China.

Relations that were once almost limited to oil trade are developing into strategic partnerships: China is continuously expanding its influence, and Saudi Arabia is reducing its reliance on the West.

The project in Chongyu is just one of many. Development is mutual: Riyadh will establish a China Economic Center, and many Chinese enterprises are investing in Saudi Arabia.

Petroleum remains the foundation of the bilateral relationship. China is the world's largest oil importer, and Saudi Arabia is one of the most important suppliers. In October 2024, Saudi Aramco supplied about 51 million barrels of oil to China, or about 1.65 million barrels per day.

But the scope of cooperation has clearly expanded. Saudi Arabia provides energy, while China handles infrastructure, trade, and high-tech areas such as artificial intelligence and smart cities. This very much aligns with Saudi Arabia's "Vision 2030": achieving economic diversification, technological modernization, and reducing dependence on oil.

For China's Belt and Road Initiative, this is also a perfect opportunity. Through energy projects, ports, industrial parks, and digital infrastructure, China is building a network aimed at expanding economic influence and securing supply chains.

Saudi is one of China's most important partners in the Middle East. Bilateral trade exceeded $100 billion in 2023. In 2024, Chinese investment in Saudi Arabia increased by nearly 30%, reaching $8.2 billion.

Coefficient cooperation in the financial field has also been significantly deepened. The Public Investment Fund of Saudi Arabia signed a cooperation memorandum of more than $50 billion with large Chinese financial institutions, covering projects including petrochemical products, industrial infrastructure, digital platforms, and cloud solutions.

Saudi companies also actively participate in Chinese venture capital and private equity fund projects, thus participating in the research and development of cutting-edge technologies in fields such as artificial intelligence, semiconductors, and renewable energy.

Ole Madsen, head of cash management business at Deutsche Bank, said: "China invests in infrastructure projects, and Saudi Arabia has also increased its investment in China. This development is a win-win situation for both countries."

China has deeply participated in Saudi Arabia's "Neom" project, providing core technology for smart cities. Huawei and other Chinese suppliers have established cloud infrastructure and 5G infrastructure locally. Additionally, China has also participated in the development of the country's rare earth resources.

In the field of renewable energy (solar, wind, and green hydrogen), China's strategic position in Saudi Arabia's economy is evident. China not only provides technology but also builds complete facilities, including the world's largest green hydrogen factory located in Yanbu. The plant is planned to be operational by 2030, producing 400,000 tons of green hydrogen annually.

This week, Crown Prince Mohammed bin Salman of Saudi Arabia is also seeking to deepen cooperation in the United States. Strategically, Saudi Arabia has created room for maneuver - this is a typical "hedging strategy".

China's goal is to expand its economic and political influence in the Middle East. Saudi Arabia aims to achieve economic diversification and strategic independence. At the same time, this cooperation is also a means of pressure on Washington: by strengthening economic and technological ties, Saudi Arabia enhances its negotiating position with the U.S., positioning itself as a middle power in geopolitics, without threatening its own military security. (Translated by Zhong Sirui)

Original: https://www.toutiao.com/article/7576183327405703721/

Statement: The article represents the views of the author. Please express your attitude by clicking on the 【up/down】 buttons below.