Saudi Arabia, China nurturing multi-faceted cooperation amid mutual trust and shared interests

The relationship between Saudi Arabia and China represents a remarkable case in international ties, notable for both its relatively short history and the depth of its current partnership.

Trade and cultural exchanges between the Chinese and the inhabitants of the Arabian Peninsula predate the bilateral official diplomatic bonding by centuries. These early interactions were rooted in the historic Silk Road, which linked China to the wider world — including the Arabian Peninsula — as a hub of trade and culture.

The modern People's Republic of China was founded in 1949 following the victory of the Communist Party of China, while the Kingdom of Saudi Arabia was established in 1932 by King Abdulaziz Al Saud. Yet, the two countries did not formalize diplomatic relations until July 21, 1990.

Leaving aside this ancient history and the rich civilizations of both nations, the bilateral trade relationship in modern times began modestly. In 1990, total trade between Saudi Arabia and China amounted to only $417 million — relatively marginal when measured against global trade standards.

Based on this historical overview, the economic relationship between Saudi Arabia and China can be divided into three key phases:

Phase one: 1990-2005

In 1991, then-Chinese premier Li Peng visited Saudi Arabia — the highest-level visit by a Chinese official since the establishment of New China. In 1998, then-Saudi crown prince Abdullah bin Abdulaziz visited Beijing.

This wave of diplomatic engagement paved the way for expanding bilateral trade. During this period, Saudi exports to China consisted mainly of crude oil and petrochemical products, while China's exports to the kingdom focused on textiles, machinery, and light industrial goods.

A milestone came in 1999, when the visit of then-Chinese president Jiang Zemin to Riyadh resulted in the first strategic cooperation agreement in the energy sector, allowing Chinese companies to invest in Saudi oil markets and enabling Saudi companies to participate in oil refining projects in China. As a result, Saudi crude exports to China grew significantly, reaching $1.5 billion by 2000.

Phase two: 2006-2012

The second phase began with King Abdullah bin Abdulaziz's historic state visit to China in 2006 — the first by a Saudi monarch. The visit signaled a decisive shift, elevating the relationship to a deeper and more strategic level, especially in the wake of regional tensions following the Iraq War, which had strained Saudi-US relations.

During this period, the global oil market underwent a profound transformation. While Saudi Arabia remained one of the world's largest oil exporters, China emerged as the kingdom's top customer, replacing Western markets. China's surging demand for crude coincided with its extraordinary economic growth, averaging above 10 percent for roughly 16 consecutive years.

The partnership between Saudi Aramco and Sinopec became one of the defining symbols of this era. Guided by China's foreign policy principle of "mutual benefit," the two sides deepened their economic cooperation while prioritizing development over ideological differences.

Key examples of Chinese projects in Saudi Arabia during this phase include:

1. 2009: A Chinese company participated in constructing the Mecca-Medina-Jeddah high-speed railway.

2. 2012: China's Sinoma International Engineering Co helped build the largest power plant in the Middle East — a facility north of Jeddah.

Phase three: 2013-present

In 2013, China became Saudi Arabia's largest trading partner for the first time, with bilateral trade reaching $69.1 billion — an astonishing 230-fold increase compared to 1990. Since then, China has consistently held this top position.

A landmark event came in January 2016, when Chinese President Xi Jinping visited Riyadh. The two nations signed a Comprehensive Strategic Partnership Agreement — underscoring Saudi Arabia's importance in China's global vision. The agreement encompassed cooperation in politics, trade, culture, security, and energy.

While energy remained the relationship's anchor, discussions during these years broadened for deeper cooperation in infrastructure and industrial sectors. This period effectively set the stage for a more profound alignment, creating the perfect conditions for the convergence of two monumental national strategies that would be formalized in 2016: Saudi Arabia's Vision 2030 and China's Belt and Road Initiative.

The 2016 visit by Xi and following events formalized the strategic alignment of Saudi Vision 2030 and BRI. In March 2017, King Salman bin Abdulaziz Al Saud made his first visit as monarch to China, placing Vision 2030 and the BRI at the top of the bilateral agenda. Crown Prince Mohammed bin Salman further solidified this partnership with a visit to Beijing in 2019.

This elevation of ties demonstrated the strategic importance China places on Saudi Arabia's global role. The partnership expanded to cover vital areas including politics, trade, culture, military, security, and energy. Consequently, Riyadh became the hub for China's Middle East relations and the primary destination for its officials. A prominent outcome of this enhanced relationship was the China-brokered reconciliation between Saudi Arabia and Iran officiated in March 2023, a major diplomatic achievement for Beijing.

Bilateral relations were further consolidated by high-level exchanges over the years. President Xi returned to Saudi Arabia in December 2022, while King Salman bin Abdulaziz Al Saud visited China again in March 2025.

On the economic front, investment models diversified significantly. In 2016, Saudi Arabia invested $2.5 billion in the China-founded Asian Infrastructure Investment Bank (AIIB), representing a 2.5 percent stake. Joint investments in petrochemicals and refining also flourished, with major Aramco projects in China and significant contributions from Chinese firms to projects within the Kingdom.

While energy security remains central — with crude oil comprising over 70 percent of Saudi exports to China from 2013 to 2023 — the economic partnership has expanded into future-oriented sectors. Chinese companies now play a pivotal role in the Kingdom's digital transformation, leading projects in 5G, artificial intelligence, and cloud computing through tech giants like Tencent, Alibaba Cloud, and Huawei.

The cooperation has also extended into renewable energy, including solar, wind, and green hydrogen. In 2024, for instance, China Energy Engineering Corporation announced a $972 million deal to construct a 2-gigawatt solar plant in collaboration with Saudi partners.

Conclusion: From the margin to the core

The trajectory of bilateral relations over the past 35 years reveals a continuous and accelerating upward curve. Trade volume has surged to $107 billion from just a few hundred million, and China has remained the Kingdom's top trading partner since 2013. Furthermore, China is now the largest source of foreign direct investment, with its contributions reaching $16.8 billion in 2023. This partnership is embodied by the 1,005 Chinese companies operating in the Kingdom — 35 of which serve as regional headquarters — and the roughly 400 Saudi businesses active in China.

This exponential growth is not merely quantitative; it signifies a profound qualitative transformation. The relationship has transcended its origins as a simple exchange of oil for consumer goods, evolving into a comprehensive strategic partnership that is actively shaping the future of both nations and the broader region.

An examination of this 35-year history reveals a single, undeniable trajectory of ascent. The outlook, therefore, is one of continued strengthening, with a focus on incorporating new fields into the partnership, particularly in the high-tech and scientific domains critical to the strategic goals of both countries.

The author is a senior researcher at the Center for Research & Intercommunication Knowledge in Riyadh, Saudi Arabia. The views do not necessarily reflect those of China Daily.