China Seeks Stronger Partnership with Saudi Arabia: Focus on Electric Vehicles, Energy

Saudi Arabia-China

China’s ambassador to Saudi Arabia, Chang Hua, emphasized Beijing’s commitment to deepening its strategic partnership with the Kingdom of Saudi Arabia. The ambassador highlighted that China is particularly keen on expanding cooperation in electric vehicle production and various other industries. He also touched on the ongoing geopolitical instability in the Middle East, condemning recent violations of Lebanon’s sovereignty and urging immediate action to ease tensions.

These remarks come at a time when China is rapidly strengthening its ties with Saudi Arabia, driven by the countries’ shared goals of economic diversification, technological innovation, and regional stability. Ambassador Hua’s sheds light on the growing relationship between the two nations, which has the potential to shape the future of the Middle East and beyond.

In a region fraught with tensions and ongoing conflicts, Ambassador Hua’s comments on the escalating violence between Israel and Lebanon reflect China’s diplomatic stance on Middle Eastern affairs. Expressing his country’s shock at the high civilian casualties, Hua called for immediate international efforts to de-escalate the situation. “China is deeply shocked by the high civilian casualties from the conflict between Israel and Lebanon,” Hua said, urging the international community to collaborate in calming the situation and preventing further escalation.

He reiterated China’s position of always standing for justice and remaining committed to peace and stability in the region. Hua’s remarks reaffirm China’s desire to act as a neutral party that can work with all stakeholders to promote peace, emphasizing that no matter how the situation evolves, “China will always stand for justice.”

Hua also reaffirmed China’s broader role in the Middle East, noting that Beijing seeks to be a force for peace in the region by encouraging dialogue and negotiation over military confrontation. As conflicts continue to shake the region, Beijing’s stance emphasizes diplomacy over violence, aligning with its broader global strategy of advocating for fair global governance and a multipolar world order.

Hua used the interview to reflect on China’s meteoric rise from a $30 billion economy to its current status as the world’s second-largest economy, valued at $17.8 trillion. This growth has propelled China to the forefront of global trade and industry, positioning it as a leader in technological advancement and production capabilities. According to Hua, China remains committed to fostering high-quality economic development and sustaining its openness to global markets.

The ambassador linked China’s economic evolution to its long-term goals for global governance, highlighting Beijing’s desire for a more multipolar world. In such a system, China envisions fairer international relations, where power is more equitably distributed, and economic globalization is more inclusive. This vision dovetails with China’s own Belt and Road Initiative (BRI), which seeks to enhance global infrastructure and trade routes, benefiting multiple countries, including Saudi Arabia.

Saudi-China Relationship

The interview came at an opportune moment, coinciding with Saudi Arabia’s 94th National Day celebrations. Hua congratulated the Kingdom and praised the deepening relations between the two countries, noting that these ties have entered a new phase of “deep development.”

Chinese Premier Li Qiang’s recent visit to Saudi Arabia underscored the growing significance of this relationship. According to Hua, the visit helped consolidate the comprehensive strategic partnership between the two nations. This partnership spans a wide range of areas, from trade to investment and cultural exchanges, setting the stage for a more stable and prosperous future.

One of the key areas where China and Saudi Arabia are aligning is their respective national development strategies—China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030. Hua stressed that Saudi Crown Prince Mohammed bin Salman is keen on further integrating these frameworks, particularly in energy, investment, and cultural cooperation. Vision 2030 aims to diversify the Saudi economy, reduce dependence on oil revenues, and promote the growth of non-oil industries. China, with its vast industrial and technological expertise, is well-positioned to assist in this transformation.

Trade between China and Saudi Arabia has surged in recent years, with China becoming Saudi Arabia’s largest trading partner. Bilateral trade exceeded $100 billion over the past two years, a testament to the growing economic interdependence between the two nations. This trade relationship is supported by a landmark currency swap agreement, which facilitates transactions in local currencies and helps reduce foreign exchange risks for businesses in both countries.

According to Ambassador Hua, this currency swap agreement has further boosted trade and investment. With China playing a leading role in global industries such as automotive, renewable energy, and tourism, these sectors have become focal points for Saudi-Chinese collaboration.

Four Wheels: Electric Vehicles

One of the most notable areas of growing cooperation is the automotive industry, particularly in the production of electric vehicles (EVs). Hua noted that Saudi Arabia is importing Chinese-made vehicles in increasing numbers, with imports reaching $4.12 billion in 2023 alone. Major Chinese automakers such as Changan, Geely, MG, Chery, and BYD are already present in the Kingdom, and discussions are ongoing about establishing local manufacturing plants.

China’s expertise in EV production is of particular interest to Saudi Arabia as the Kingdom aims to make electric vehicles account for at least 30% of cars on the road in Riyadh by 2030, a key goal under Saudi Vision 2030. China, which exported 1.203 million electric vehicles in 2023—representing a 77.6% increase over the previous year—is a natural partner for achieving this ambitious target.

This collaboration is expected to expand further, with Chinese companies looking to establish production facilities within Saudi Arabia. Such a move would not only align with the Kingdom’s environmental goals but also contribute to job creation and technological advancement.

Another cornerstone of Saudi-China cooperation is renewable energy. Chinese companies are actively involved in the Kingdom’s renewable energy projects, most notably in solar power. One such project is the Al Shuaibah photovoltaic plant, the largest solar plant in the world with a capacity of 2.6 gigawatts. This project reflects Saudi Arabia’s ambitious plans to become a global leader in renewable energy, as part of its broader strategy to reduce its reliance on fossil fuels.

In 2023, the Saudi Public Investment Fund-backed Renewable Energy Localization Company (RELC) signed agreements with three major Chinese firms—Envision Technology Group, Jinko Solar, and TCL Zhonghuan. These agreements are aimed at establishing joint ventures to produce high-efficiency solar cells in Saudi Arabia, contributing to the Kingdom’s goal of sourcing 75% of renewable energy project components locally by 2030.

China’s involvement in these projects highlights the strategic alignment between the two nations in renewable energy development, which is seen as critical for both their future economic growth and environmental sustainability.

Tourism: A New Avenue for Cultural Exchange

Tourism has also emerged as a growing area of cooperation. In September 2023, Saudi Arabia and China signed a memorandum of understanding to facilitate group tourism, making the Kingdom an official destination for Chinese tour groups. This agreement has sparked interest among Chinese travelers, with several travel agencies already offering packages to Saudi Arabia.

The increase in tourism is further supported by expanded air travel routes between the two nations. Saudi Airlines now operates several weekly flights between major Chinese cities such as Beijing, Shanghai, and Shenzhen, and Saudi hubs like Riyadh and Jeddah. This increase in air connectivity is expected to further boost cultural exchanges and strengthen people-to-people ties.

The upcoming “Saudi-Chinese Cultural Year 2025” is another testament to the growing cultural cooperation between the two nations. This initiative will feature a series of events and exchanges designed to enhance mutual understanding and promote cultural dialogue.

As Ambassador Chang Hua’s interview makes clear, the relationship between China and Saudi Arabia is entering a new era of strategic cooperation. Whether in the automotive industry, renewable energy, tourism, or broader economic and cultural exchanges, the two nations are building a partnership that could reshape the future of the Middle East.

China’s commitment to regional stability, coupled with its economic might, positions it as a key player in Saudi Arabia’s Vision 2030. As the Kingdom continues its ambitious drive toward diversification and modernization, China is poised to be a critical partner in this journey, offering expertise, investment, and support across a wide range of sectors.

This relationship is not just about economic benefits but also about fostering a multipolar world where countries can collaborate on equal footing to achieve shared goals. As both nations continue to deepen their ties, the coming years will likely see even greater cooperation, with electric vehicles, renewable energy, and cultural exchange playing leading roles in this flourishing partnership.

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