Closer biz links with Arab nations on cards

China will enhance business ties with Arab countries by closely collaborating in key areas like regional connectivity, green energy and infrastructure development, senior Chinese government officials said on Monday, as the country aims to expand high-quality cooperation under the framework of the Belt and Road Initiative.

Besides encouraging domestic companies to construct conventional infrastructure such as ports and power stations, China and Arab nations have abundant opportunities to broaden their partnership in diverse domains, transcending the traditional confines of the oil and gas sector, said Li Fei, China's vice-minister of commerce.

Li made the remarks in a speech ahead of the sixth China-Arab States Expo, which will be held from Sept 21 to 24 in Yinchuan, the capital of Ningxia Hui autonomous region in Northwest China.

Both sides can also unlock new avenues of cooperation and mutual benefit by delving into areas such as green energy, finance, infrastructure and information technology, Li told a news conference in Beijing.

He also said there are enormous prospects for cooperation between Chinese and Arab companies in the photovoltaic, solar thermal and new energy vehicle sectors.

The expo this year will feature activities in the digital economy, clean energy, water resources, modern agriculture, green food, cross-border e-commerce and tourism, with a special focus on technology and healthcare, said Wang Li, vice-chairman of the Ningxia Hui autonomous region.

Bilateral trade between China and Arab nations remained stable in the first half of 2023, reaching $199.9 billion. Meanwhile, Chinese investment in Arab states grew 7 percent year-on-year to $1.44 billion, while investments by Arab countries in China hit $2.15 billion, data from China's Ministry of Commerce showed.

Ajlan & Bros Holding Group, a Saudi Arabia-based conglomerate, signed investment deals worth 60 billion yuan ($8.4 billion) with 15 Chinese companies, including China Harbour Engineering Co Ltd and SF Express, late last year. It plans to further expand in the Chinese market, especially in fast-growing trade in services sector, the company said.

China's economic growth is driven by various factors, including exports and domestic demand, the demographic dividend and strong adaptability to global trade. The country has become an indispensable link in the international supply chain that is difficult to replace, said Mohammed Bin Abdulaziz Alajlan, deputy chairman of ABHG.

Meanwhile, CRRC Qingdao Sifang Co Ltd, a Shandong province-based subsidiary of China Railway Rolling Stock Corp, will supply diesel-powered multiple unit passenger trains to Etihad Rail of the United Arab Emirates in the coming months. These trains will be put into service in 2025.

The supply contract includes three DMU passenger trains with a top speed of 200 kilometers per hour, a purchase option of an additional 20 trains and maintenance service for all trains for 15 years, said Wang Liang, vice-president of the overseas business unit at CRRC Qingdao Sifang.

This is the first time that China will export DMU passenger trains to the UAE, a move that is expected to significantly enhance passenger services of the mainline railway network in the Middle Eastern country, Wang said.

"These trains will be manufactured with internationally advanced standards and technology, and can run in hot and sandy conditions," said Wang, adding that they are expected to be the fastest DMU trains in the world.