At this critical juncture in the reshaping of the global economy, Saudi Arabia's strategic decision to turn to China is not only a symbol of the growing economic ties between the two countries, but also a sign of a drastic change in the global economic geopolitical landscape.
This transformation involves not only huge capital flows and investment cooperation, but also deeper economic restructuring and an eastward shift in the strategic focus.
As Saudi Arabia gradually reduces its dependence on the United States and actively seeks to deepen cooperation with China, the balance of the global economy is quietly changing. This process not only reflects the complexity of current international relations, but also indicates a new trend in the future direction of the global economy.
Saudi Arabia's economic strategy of turning to China and the influx of 4 trillion yuan into the Chinese market mark a major change in the world economic landscape.
The Middle East, and Saudi Arabia in particular, has always been an important part of the world economy. Saudi Arabia's strategic shift from reliance on the U.S. military and economic system to deepening cooperation with China reflects an eastward shift in the global center of gravity.
There is no doubt that Saudi Arabia's move is certainly influenced by the false conflict and the Palestinian-Israeli conflict. In these two wars, they are likely to realize that there is a very big risk of relying too much on Western countries, especially the world's policeman, the United States.
The United States, in Chinese terms, is an example of preferring me to pay the people of the world rather than teach the people of the world to bear me. Therefore, at this time, Saudi Arabia is likely to hope that this cooperation with China can open a bridge between the two countries that will blossom in many ways.
China's economic position is already the second largest in the world, and the rapid development of the past decade or so has made China very different from what it was more than a decade ago.
China's investment environment, or some other aspects of economic development, has made the world see China's strength. Especially in some photovoltaics, or new energy vehicles, lithium batteries are the world's leading positions, so that cooperation with China can be a good way to enable Saudi Arabia to achieve the goal of reducing its dependence on the United States.
Saudi Arabia's pivot to China reflects a major shift in the global economic and geopolitical landscape. In 2023, the global economy is facing challenges. According to the World Bank**, the global economy will grow by just 17%, down 1. from the previous **3 percentage points.
The slowdown was largely due to high inflation, rising interest rates, reduced investment, and disruptions to economic activity caused by Russia's invasion of Ukraine. In particular, 95 per cent of advanced economies and nearly 70 per cent of emerging markets and developing countries** saw growth downwards.
In some regions that have used the dollar and euro this year, their economic growth rates have already begun to decline. Even countries that use the currencies of developed countries are facing this situation, which means that the global economy is facing a recession.
China's current forecast has been lowered to 43%, but that's a very conservative estimate, but it's still higher than many other major economies.
In many developing countries except China, they are likely to drop to 2About 7%, this is due to the fact that many developing countries abroad are facing very high inflation, especially the two-year war, or some other reasons.
In addition, at present, almost every country in the world is absorbed by developed economies with high debt and high interest rates, which has led to this stress and weakness in some emerging markets and many, many developing countries.
Surveys have shown that in this new developing market, the total investment in the developing economy may be half of what it has been in the past 20 years, which is a very sluggish state and not an ideal investment environment.
In summary, Saudi Arabia's economic strategy of turning to China is a strategic choice made against the backdrop of a global economic slowdown, geopolitical tensions, and the need for economic diversification.
This not only shows the eastward shift of global economic power, but may also provide an example for Saudi Arabia and other developing countries to reduce their dependence on the West and diversify their economies.
The economic ties between Saudi Arabia and China are already very strong, especially in the energy sector. Saudi Arabia is China's largest partner in the Middle East and China's largest oil country.
In 2021, the total amount between China and Saudi Arabia reached $87.3 billion. In the past five years, the total bilateral ** between China and Saudi Arabia has reached 12 trillion Saudi riyals, or about $320 billion.
In addition, China and Saudi Arabia have signed important bilateral agreements in a number of areas, including strengthening cooperation on the Belt and Road Initiative, as well as cooperation agreements in various fields such as production capacity, energy, science and technology.
The economic relationship between Saudi Arabia and China has become a striking example of the changing global geopolitical and economic landscape. Saudi Arabia has always been China's main partner in the Middle East, with the bilateral volume between China and Saudi Arabia reaching US$116 billion in 2022, demonstrating the strength and deepening of economic relations between the two countries.
Under the new situation of globalization, China's cooperation with Middle Eastern countries, especially Saudi Arabia and the United Arab Emirates, has been deepening, which is not only reflected in the traditional energy field, but also extended to finance, digital economy, new energy and other aspects.
The current cooperation between Japan and the countries of the Middle East is based on the sense that the global economy is facing an important challenge and change. Due to their special geographical location and special characteristics, the countries of the Middle East can provide the resources they need.
In particular, cooperation in the field of finance, which means a new phase of finance between our country and their country. At the same time, this has also played a great role in promoting China's renminbi to enter the international market.
In addition, Saudi Arabia and other Middle Eastern countries have joined the BRICS, providing new opportunities for financial cooperation between China and these countries.
The expansion of the BRICS will help reduce dependence on the US dollar, promote a more polarized international financial system, and facilitate the diversification of cooperation between Saudi Arabia and China in the financial field.
These developments show that China's cooperation with Middle Eastern countries is shifting from traditional energy** to broader and deeper economic and financial cooperation, which not only provides new opportunities for cooperation between the two sides, but also may reshape the global economic landscape.
During the recent visit of our leadership to Saudi Arabia, the two countries signed nearly $50 billion in investment agreements and contracts, further strengthening bilateral relations.
These agreements cover a wide range of sectors, such as green energy, logistics, cloud computing, and housing. These collaborations provide strong support for Saudi Arabia's Vision 2030 and China's Belt and Road Initiative, marking a new height in the relationship between the two countries.
In summary, Saudi Arabia's strategic move to turn to China not only represents its quest to shift from a traditional oil economy to a more diversified development model, but also reflects the eastward shift of global economic power.
The move will have far-reaching implications for the global economic landscape, particularly in the Middle East and global energy markets. At the same time, it also marks China's growing influence and attractiveness in the global economy.