China, GCC vow to reach comprehensive FTA within 2016

Wu Bingbing, a professor of Middle East studies at Peking University, said the agreements signed on Tuesday “showcase the future pathways for Saudi Arabia to upgrade its industries”, and will effectively serve the country’s plan to diversify its economy.

Numerous agreements forged in Riyadh also centred on economics; China’s Belt and Road initiative, which aims to revive the ancient Silk Road, is expected to boost those ties between China and the Arab world.

Chinese President Xi Jinping is expected to focus on energy and negating regional extremist influences during his five-day tour through Riyadh, Cairo and Tehran, which began Tuesday (Jan 19).

“The kingdom of Saudi Arabia and China are seeking together for stability and promoting peace and security in the world”, SPA quoted King Salman as saying.

After his visit to Saudi Arabia, Xi will travel to Egypt where he will meet with President Abdel-Fattah al-Sissi and deliver a speech at the Cairo headquarters of the Arab League on China’s policies in the Middle East.

“Major pacts inked by the two sides also include an energy cooperation agreement and an accord to work together on the Silk Road Economic Belt Initiative to achieve goals of development within the framework of the initiative”, said Fu, in reference to China launching the initiative of jointly building the Silk Road Economic Belt and the 21st Century Maritime Silk Road (the Belt and Road Initiative). “In fact, a memorandum of understanding was also signed to boost cooperation in the renewable energy sector”, said Yao.

The Chinese president was awarded the King Abdulaziz Medal by Salman, the highest order in Saudi Arabia.

Saudi Arabia is China’s biggest trading partner in West Asia and Africa, and one sixth of China’s imported crude oil is from the kingdom.

Two-way trade reached 69.1 billion USA dollars in 2014, growing by 230 times over that of 1990 when the two countries established diplomatic ties.

King Salman and President Xi will open a joint venture refinery on Wednesday in Riyadh, which was developed by Saudi Arabia’s state-owned Aramco and China’s state-owned China Petrochemical Corp, according to AFP.

“Any decision that may cause social disruption and chaos in Yemen should be avoided”, the statement said.

On Palestine, China and Saudi Arabia said they support the establishment of an independent, unified state of Palestine with full sovereignty, with East Jerusalem as its capital.

Chinese President Xi Jinping, who met with King Salman bin Abdulaziz Al Saud of Saudi Arabia in Riyadh on Tuesday, announced with his Saudi host that “the two countries welcome the progress made in China-GCC free trade area negotiation, and agreed to establish the free trade area as early as possible” Chinese state agency Xinhua reported.

The announcement, in a joint statement, came during a visit to Saudi Arabia by Chinese President Xi Jinping.