The 10th Ministerial Meeting of the China-Arab States Cooperation Forum (CASCF) was held in Beijing on May 30th. Chinese President Xi Jinping will attend the opening ceremony and deliver a keynote speech. King Hamad of Bahrain, President Sisi of Egypt, President Saied of Tunisia, and President Mohammed of the United Arab Emirates, who are currently in Beijing for state visits to China, will also attend the opening ceremony. The attendance of such high-level officials underscores the mutual appreciation between China and Arab countries for their friendship and demonstrates their strong desire to continue enhancing the level of cooperation.
The friendly relations between China and Arab countries have a long history, with the ancient Silk Road once closely connecting the two great civilizations. Up to the "Belt and Road" Initiative jointly proposed in 2013, economic cooperation has been the foundation of bilateral cooperation. Based on the differences in resource endowments and economic structures between the two sides, they have been strengthening the "1+2+3" cooperation framework in recent years, with energy cooperation as the main axis, infrastructure construction, trade, and investment facilitation as the two wings, and nuclear energy, aerospace satellites, and new energy as the breakthrough points in the three high-tech fields, striving to achieve complementary advantages and win-win cooperation.
The foundation of bilateral economic cooperation lies in international trade. Over the past two years, China-Arab trade has remained at a historical high of around USD 400 billion, more than ten times that of 20 years ago. The crude oil exports from Arab countries to China have long accounted for about half of China's crude oil imports, reaching 265 million tons in 2023. Among them, the bilateral trade volume between China and the Gulf Cooperation Council (GCC) countries reached USD 286 billion in 2023, with China continuing to maintain its position as the GCC's largest trading partner, with an average annual growth rate of nearly 15%, showing a steady growth trend and significantly ahead of China's three major trading partners, namely ASEAN, the European Union, and the United States. In addition, China's imports of non-oil commodities from Middle Eastern countries amounted to approximately USD 77.7 billion, an increase of 12.8% year-on-year, further optimizing the trade structure.
Moreover, spurred by the favorable policies of the Belt and Road Initiative, mutual investment between China and Arab countries has also surged. Since 2023, funds from the Middle East, especially from GCC countries, have been accelerating their investment in China, marking a two-way movement of Chinese industries and Arab capital. Arab capital seeks to invest in Chinese industries through diverse channels to achieve economic transformation in their own countries, while China has already taken the lead globally in many high-tech fields. For instance, in the new energy vehicle sector, which has seen frequent investments from the Middle East, China offers numerous high-quality investment targets with dual advantages in technology and production capacity for Arab capital. Taking the Abu Dhabi Investment Authority as an example, the share of RMB assets in its portfolio increased rapidly from 4.5% in 2019 to 22.9% in 2023. It is estimated that the current asset management scale of the top ten Arab sovereign wealth funds is approximately USD 3.5 trillion, with only about USD 35 billion, or less than 1% of their total investments, in China, indicating vast room for growth. By 2030, the size of Arab sovereign wealth funds is expected to expand to USD 10 trillion, with approximately 10%, or nearly USD 1 trillion, invested in China.
China is also increasing its investments and mergers and acquisitions in the Arab region. In particular, the UAE in the Gulf region and Egypt in North Africa have both absorbed over USD 300 million annually in mergers and acquisitions by Chinese enterprises, and this trend continues to grow rapidly. Therefore, the two-way movement of China and Arab countries in industrial and capital cooperation is profoundly transforming their previous economic cooperation model characterized by oil and gas exports and simple trade goods, significantly enhancing their mutual dependence and trust.
At this ministerial meeting, it is anticipated that China and Arab countries will also issue a joint statement on the Palestinian issue. China has always fully respected the independent decision-making power of Arab countries on the Palestinian issue and fully respects and supports the just cause of the Palestinian people in seeking statehood. As Deputy Foreign Minister Deng Li stated at the briefing for this meeting, "The fundamental reason why the Middle East issue remains unresolved is that Palestine has not achieved its independence and statehood. We have always firmly supported the Palestinian people in restoring their legitimate and just rights and have always supported the establishment of peaceful coexistence between the two states in the region. The masters of the Middle East are the people of the region, and the issues of the region must be resolved by the people of the region."
Apart from the Palestine-Israel conflict that has persisted since October 2023, the Middle East region continues to face numerous challenges in the geopolitical domain. The relationship between Arab countries and Israel remains bleak, with the normalization process of Arab-Israeli relations at a standstill, and the Palestine-Israel conflict still poses a risk of spillover. The Syrian civil war, which has dragged on for over a decade, continues to challenge the stability of the Middle East, with Syria becoming a battleground for the rivalries between Sunni and Shia Islamists, as well as between Europe, the United States, and Russia. The Houthis in Yemen have repeatedly attacked merchant ships passing through the Red Sea, and the possibility of targeting oil facilities in Gulf countries cannot be ruled out, posing a significant threat to regional energy supply security. Additionally, the unexpected death of Iran's President Raisi has raised concerns about Iran's future political trajectory and its potential impact on regional political dynamics and China-Arab relations.
In this period of rapid change, China and Arab countries need to work together more closely to address major regional and global concerns, making cornerstone contributions to peace and development. On January 1, 2024, at China's invitation, Saudi Arabia, Egypt, and the United Arab Emirates have officially become members of the BRICS, adding another dimension and platform for China-Arab economic, trade, and political cooperation beyond the Belt and Road Initiative, which also represents an important opportunity for Arab countries to enhance their development levels.
This year marks the 20th anniversary of the China-Arab Cooperation Forum, which has become a golden brand for promoting collective dialogue and pragmatic cooperation between the two sides. The concentrated attendance and full support of top leaders from both sides at this forum have laid a solid foundation for accelerating all-round strategic cooperation. The mutual trust in China-Arab cooperation is assured, and there is no upper limit to our cooperation.
Quoted from: China.com.cn
Link: http://news.china.com.cn/txt/2024-05/29/content_117221802.shtml
