Jan 25, 2016
China and Saudi Arabia signed a Memorandum of Understanding (MoU) on industrial capacity cooperation. The agreement was signed during a meeting between Chinese President Xi Jinping and Saudi King Salman bin Abdulaziz Al Saud in Riyadh (Saudi Arabia) in January 2016. The meeting between Chinese President Xi Jinping and Saudi King Salman bin Abdulaziz Al Saud in Riyadh was held in regard with the promotion of Silk Road Economic Belt and 21 century Maritime Silk Road.
They also agreed to build a long-term stable strategic cooperation in energy sectors in order to improve the cooperation in energy policies between the two countries.
As well as, China and Saudi Arabia will discuss over the cooperation in other fields during this meeting like construction of railways and power stations, investment in finance and aerospace, and the peaceful use of nuclear energy.
China – Saudi Arabia relations
China and Saudi Arabia have already invested in each other’s market in regard with different fields. For example, in 2009 China’s Railway Company constructed a monorail system in Mecca in order to provide ease to the travelling pilgrims. In 2006, China and Saudi Arabia agreed to jointly build an oil storage facility in China’s Hainan Island. At the same time, it is important to note that in recent past Saudi Arabia was the first source of China’s oil imports.
This is to note that in last one year, China’s economy saw a down fall due to which Chinese Government is looking for markets in Middle East and African countries in order to boost its economy.
Source: PrepSure