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China, Saudi Arabia cement ties with deals including Huawei

Chinese President Xi Jinping hails ‘new era’ in relationship with Gulf as he meets Saudi crown prince, king.

Saudi King Salman meets Chinese President Xi Jinping in Riyadh, Saudi Arabia on December 8, 2022 [Saudi Press Agency/Handout via REUTERS]

8 Dec 20228 Dec 2022

Chinese President Xi Jinping and Saudi King Salman have signed a series of strategic deals, including one involving Chinese tech giant Huawei, as part of a visit expected to bolster political and economic ties.

Xi’s three-day visit to the kingdom includes Arab and Gulf summits and is being closely watched by the United States as Washington’s relations with Riyadh are at a low point.

On Thursday, Xi and King Salman signed a “comprehensive strategic partnership agreement” after he was escorted to Yamamah Palace by the Saudi Royal Guard, who were on horseback and carried Chinese and Saudi flags.

Crown Prince Mohammed bin Salman (MBS), the de facto ruler of the world’s biggest oil exporter, greeted Xi at the palace, which is the king’s official residence and seat of the royal court. The Chinese leader heralded “a new era” in ties.

China is the world’s largest importer of crude oil, for which it is heavily reliant on Saudi Arabia. The agreements that both sides were to sign were valued at around $30bn, according to Saudi state media.

The deal over Huawei Technologies is related to cloud computing, data centres and building high-tech complexes in Saudi cities, according to Saudi officials.

US security officials have warned that equipment from Chinese brands such as Huawei could be used to interfere with fifth-generation (5G) wireless networks and collect sensitive information.

Yet Huawei has taken part in building 5G networks in most Gulf states despite the US concerns.

After Xi’s arrival on Wednesday, with formation jets flying overhead, Saudi state media announced 34 investment agreements in sectors including green hydrogen, information technology, transport and construction.

The official Saudi Press Agency did not provide details but said two-way trade totalled 304 billion Saudi riyals ($80bn) in 2021 and 103 billion Saudi riyals ($27bn) in the third quarter of 2022.

State broadcaster Al Ekhbariya said another 20 agreements worth 110 billion riyals ($29.3bn) were due to be signed on Thursday.

Xi and King Salman agreed to hold meetings between the two countries’ leaders every two years, China’s state-run Xinhua news agency reported.

Arab leaders also began to converge on the Saudi capital ahead of a summit with Xi, who will hold separate talks with the six-member Gulf Cooperation Council (GCC) before leaving on Friday.

Leaders convening in Riyadh include Egyptian President Abdel Fattah el-Sisi, Tunisian President Kais Saied, Palestinian President Mahmoud Abbas and Sudan’s de facto leader Abdel Fattah al-Burhan.

Iraqi Prime Minister Mohammed Shia al-Sudani, Moroccan Prime Minister Aziz Akhannouch and Lebanese caretaker Prime Minister Najib Mikati also confirmed their attendance.