China’s trade and investment cooperation with Arab nations, as showcased by the ongoing China-Arab States Expo, has not only deepened in traditional sectors but has also expanded into emerging areas, according to senior officials and company executives.
The sixth China-Arab States Expo, a biennial event held in Yinchuan, Northwest China’s Ningxia Hui autonomous region, has seen participation from 1,000 domestic and foreign businesses, covering 40,000 square meters of exhibition space.
Economic and trade relations between China and Arab countries have diversified into sectors like communications, nuclear energy, aerospace, and satellites, in addition to established areas such as energy, investment, and infrastructure, as stated by Zheng Jianbang, vice-chairman of the Standing Committee of the 14th National People’s Congress.
China is committed to building a strategic energy partnership with Arab states, focusing on mutual benefits and long-term friendship. They are also exploring the possibility of establishing a renminbi settlement system for oil and gas trade to ensure the security and stability of global energy supply chains. China plans to enhance “oil and gas plus” cooperation, expand collaboration in upstream field development, engineering services, storage, transportation, and refining.
Data from a joint report by the expo secretariat and China-Arab Research Institute shows that China’s imports of crude oil and natural gas from Arab nations accounted for a significant portion of its total imports last year, underlining the importance of China-Arab energy cooperation.
China-Arab collaboration in the new energy sector is also thriving, promising a bright future.
China is now the largest trading partner of Arab countries, with trade value reaching $431.4 billion in 2022. The first half of this year saw trade between China and Arab states reach $199.9 billion.
Chinese companies have been actively investing in Arab countries, and infrastructure cooperation is on the rise. Chinese firms signed new construction contracts worth $36.7 billion with Arab nations in 2022.
The China-Arab States Expo serves as an essential platform for promoting cooperation, especially among countries participating in the Belt and Road Initiative. This year’s event is expected to result in the signing of over 400 projects worth more than 170 billion yuan ($23.2 billion), with investment projects comprising over 90 percent of all initiatives.
Additionally, the expo has played a positive role in facilitating economic exchanges between China and Arab countries and enabling Arab countries to learn from China’s effective policies for economic recovery and growth.
China’s resilient economic growth post-COVID-19 has inspired optimism and confidence worldwide. The Chinese government’s support for industrial transformation, future industrial development, and its effective COVID-19 response measures have created a conducive environment for foreign businesses to invest and expand in China, contributing to global economic growth.