In a world rapidly shifting toward economic multipolarity, Saudi-China economic relations stand out as one of the most consequential strategic partnerships of the twenty-first century. This relationship has evolved far beyond a conventional trade exchange between an oil exporter and an energy-hungry importer. It has transformed into a comprehensive strategic partnership stretching from deep oil fields to the peaks of 5G towers, and from sovereign wealth funds to futuristic smart city projects. Bilateral trade volume now exceeds $100 billion annually, making China Saudi Arabia’s largest trading partner, while the Kingdom remains Beijing’s top crude oil supplier. This eastern pivot is not merely redrawing the map of regional trade — it is reshaping global trade alliances entirely.

State Visits and the Strengthening of Economic Diplomacy Between Riyadh and Beijing

President Xi Jinping’s historic state visit to Riyadh in December 2022 marked a pivotal turning point in the trajectory of bilateral relations. During that visit, the two sides signed more than 34 investment agreements worth a combined value exceeding $30 billion, spanning the energy, technology, infrastructure, and telecommunications sectors (Reuters). This was not mere diplomatic protocol — it was an explicit declaration that the relationship had entered a new phase of comprehensive strategic partnership.

The Kingdom hosted three simultaneous summits during the visit: the Saudi-Chinese Summit, the Gulf-Chinese Summit, and the Arab-Chinese Summit. This unprecedented diplomatic arrangement confirmed that Riyadh positions itself as a strategic gateway for cooperation between the Arab world and China. Analysts at the Council on Foreign Relations have noted that this move reflects a clear Saudi desire to diversify its strategic partnerships away from exclusive reliance on the Western axis.

“Saudi-Chinese relations represent a new model of South-East partnership, where energy security meets technological ambition within a framework of mutually beneficial cooperation.”

In 2025, high-level visits between the two countries continued, with relations deepening further at the level of joint committees and strategic dialogues. Observers at the Brookings Institution are watching these developments with keen interest, noting that Saudi Arabia’s eastern pivot may redefine the balance of global economic power. For more analysis on geopolitical shifts in the region, see our comprehensive coverage of Gulf-Asia trade relations.

Oil Trade in Yuan: A Challenge to Dollar Dominance in Energy Markets

The question of pricing Saudi oil in Chinese yuan is among the most controversial issues in global economics. China imports more than 1.7 million barrels per day of Saudi crude oil, making it the single largest buyer of Saudi oil (Bloomberg). Saudi Finance Minister Mohammed Al-Jadaan explicitly stated that the Kingdom is “open to trading in currencies other than the US dollar.”

This statement sent shockwaves through global financial markets because it poses a direct threat to the petrodollar system that has served as a foundational pillar of the global financial architecture since the 1970s. Reports from the South China Morning Post indicate that negotiations over pricing a portion of Saudi oil exports in yuan have progressed significantly.

Key developments in this arena include:

• Saudi Arabia’s accession as a dialogue partner in the Shanghai Cooperation Organisation, strengthening the framework for economic cooperation with China
• Expansion of currency swap agreements between the Saudi Central Bank and the People’s Bank of China
• Inclusion of the Saudi riyal in the basket of currencies used for bilateral trade settlement with Beijing
• Growth of yuan usage in bilateral trade settlements by over 40% in the past two years

Experts at the World Trade Organization suggest that this shift, while gradual, could contribute to restructuring the international monetary system over the long term. For the latest developments in global oil markets, visit our Oil Markets section.

Belt and Road Initiative and Infrastructure Investments in the Kingdom

China’s Belt and Road Initiative (BRI) represents one of the most prominent frameworks for economic cooperation between the two countries. China has allocated massive investments in Saudi infrastructure projects that align directly with the goals of Saudi Vision 2030. These investments span transportation, logistics, renewable energy, and smart cities (China Daily).

The NEOM project stands out as one of the most important intersections between Saudi ambition and Chinese technological capabilities. Leading Chinese companies participate in smart infrastructure projects within NEOM, including intelligent transportation systems, sustainable buildings, and renewable energy networks. The value of Chinese participation in NEOM projects is estimated at several billion dollars.

“The Belt and Road Initiative and Vision 2030 form a uniquely complementary strategic alignment, where Chinese infrastructure meets Saudi developmental ambition at an intersection unparalleled in the contemporary global economy.”

Major Belt and Road projects in the Kingdom include:

1. High-speed railway projects connecting major cities using advanced Chinese technology
2. Port development and special economic zones along the Red Sea coast
3. Large-scale solar energy projects in partnership with leading Chinese clean energy companies
4. Digital infrastructure including data centers and fiber-optic networks
5. Joint industrial zones to enhance local manufacturing and technology transfer

To learn more about the Kingdom’s economic diversification goals, read our in-depth analyses of Saudi Vision 2030.

Huawei Partnership and 5G Technologies: Technology at the Heart of Relations

Cooperation in 5G technology constitutes one of the most prominent features of the Saudi-Chinese partnership. Chinese firm Huawei plays a pivotal role in building the 5G infrastructure in the Kingdom, despite growing American pressure to exclude the company from sensitive telecommunications projects worldwide.

Huawei has signed strategic partnership agreements with both Saudi Telecom Company (STC) and Zain Saudi Arabia, covering 5G network deployment, smart city solutions, and cloud computing. Chinese investments in Saudi Arabia’s telecommunications sector are estimated at over $3 billion (Reuters).

Technology cooperation extends to include:

• Artificial Intelligence: Research partnerships between Saudi and Chinese institutions in developing AI applications
• Cloud Computing: Establishment of joint cloud data centers in the Kingdom to deliver advanced digital services
• Internet of Things: Smart applications in health, transportation, and agriculture sectors
• Cybersecurity: Knowledge exchange and capacity building in digital infrastructure protection

Within the NEOM project specifically, Chinese technologies contribute to building what is described as the smartest city in the world, relying on 5G networks as the backbone for intelligent services ranging from autonomous transport to AI-powered energy management. The Saudi Ministry of Investment (MISA) is actively working to attract Chinese tech companies to establish regional headquarters in the Kingdom. To learn more about 5G developments in the Gulf region, read our reports on 5G technology in the UAE and Gulf states.

Joint Petrochemical Ventures and Energy Sector Transformation

Cooperation in the energy sector is not limited to crude oil exports — it extends to include massive joint petrochemical ventures aimed at maximizing value addition and enhancing industrial integration. Saudi Aramco is a key strategic partner for several Chinese energy companies in refining and petrochemical projects both within the Kingdom and in China.

Major joint projects include:

1. YASREF — Yanbu Aramco Sinopec Refining Company: A joint venture between Aramco and China’s Sinopec valued at over $10 billion
2. Aramco investments in Chinese refineries: Aramco holds strategic stakes in several refineries and petrochemical complexes in China
3. Green hydrogen projects: Joint partnerships to develop hydrogen production and transport technologies as the fuel of the future
4. Carbon capture technologies: Research collaboration to develop innovative solutions for carbon dioxide capture and storage

Data from Bloomberg Energy indicates that the volume of joint investments in the petrochemical sector between the two countries exceeds $25 billion, with ambitious expansion plans for the coming years. This cooperation serves Saudi Arabia’s strategy of transforming the Kingdom from a mere crude oil exporter into a global hub for petrochemicals and advanced materials.

Public Investment Fund and Joint Funds: Investment as a Strategic Bridge

The Saudi Public Investment Fund (PIF) plays a central role in deepening investment ties with China. The fund established a joint Saudi-Chinese investment fund in cooperation with several major Chinese financial institutions, targeting investments in technology, manufacturing, and infrastructure sectors.

Key joint investments include:

• A PIF-China fund valued at over $10 billion focused on advanced technology and manufacturing sectors
• Investments in Chinese technology startups in artificial intelligence, robotics, and biotechnology
• Partnerships in the gaming and digital entertainment sector with leading Chinese companies such as Tencent
• Investments in Chinese electric vehicle companies, including partnerships with firms like Lucid and NIO

The Public Investment Fund leverages these partnerships as a tool for achieving two interrelated objectives: diversifying national income sources in line with Vision 2030, and enhancing technology transfer and building local capabilities. Informed sources estimate total reciprocal investments between Saudi sovereign wealth funds and Chinese institutions at over $20 billion (Reuters).

Defense Cooperation and Military Technology: The Security Dimension of the Partnership

The Saudi-Chinese rapprochement is not confined to economics — it extends to include cooperation in defense technology. Recent years have witnessed notable expansion in arms deals and military technology exchanges between the two countries, a step reflecting Riyadh’s desire to diversify its arms sources away from total reliance on Western suppliers.

Key areas of defense cooperation include:

• Unmanned aerial vehicles (drones): The Kingdom has acquired advanced Chinese-made Wing Loong drones for reconnaissance and surveillance missions
• Ballistic missile systems: Cooperation in developing and upgrading missile defense systems
• Joint military manufacturing: Projects to establish joint military production lines in the Kingdom to enhance self-sufficiency
• Training and capacity building: Joint training programs and exchange of military expertise

This cooperation has raised concerns in Washington, which views any Saudi-Chinese military rapprochement with great caution. However, Riyadh maintains that diversifying arms sources serves its national security interests and does not target any party. Reports from the Council on Foreign Relations indicate that this security dimension adds new strategic depth to the bilateral relationship that extends beyond the traditional economic sphere.

Cultural and Educational Exchange: Building Bridges Between Civilizations

Alongside economic and security dimensions, cultural and educational relations between Saudi Arabia and China are experiencing remarkable growth. The Kingdom has introduced Chinese language (Mandarin) into its educational curricula, a step reflecting Saudi leadership’s recognition that cultural rapprochement forms the foundation for a sustainable economic partnership.

Key cultural and educational exchange initiatives include:

1. Mutual scholarship programs: Thousands of Saudi students study at Chinese universities, while the number of Chinese students in Saudi educational institutions continues to grow
2. Joint cultural events: Organization of art exhibitions and cultural weeks introducing each nation’s heritage and civilization to the other
3. Tourism: Simplified visa procedures and increased direct flights between major cities in both countries
4. Media cooperation: Partnerships between Saudi and Chinese media institutions to enhance mutual understanding

Analysts view this cultural dimension as the most sustainable investment in bilateral relations because it builds firm foundations of mutual understanding that transcend calculations of immediate economic interests. China Daily reports that the number of Chinese tourists visiting the Kingdom has tripled since the launch of Saudi Arabia’s tourist visa system.

Bilateral Trade Volume: The Numbers Tell the Story

Bilateral trade figures paint a clear picture of the depth of economic relations between the two countries. According to data from the World Trade Organization, the volume of trade between Saudi Arabia and China exceeded $100 billion in 2024, recording growth of more than 15% compared to the previous year.

Key trade indicators:

• Saudi exports to China: Concentrated primarily in crude oil, petrochemical products, and minerals, valued at over $65 billion
• Saudi imports from China: Include electronics, industrial equipment, automobiles, and textiles, valued at approximately $35 billion
• Chinese direct investment in the Kingdom: Exceeds $20 billion, distributed across infrastructure, technology, and manufacturing sectors
• Number of Chinese companies operating in the Kingdom: Over 200 companies, a notable increase over previous years

“China and Saudi Arabia are not simply building a trade relationship — they are establishing a multipolar economic order that is redistributing the centers of gravity in global trade from West to East.”

Projections indicate that bilateral trade volume could reach $150 billion by 2030, driven by expanding technological cooperation, diversification of Saudi exports, and continued growth in the Chinese economy. These figures are a clear indicator that Saudi Arabia’s eastern pivot is not a temporary tactical choice but a structural, long-term strategic transformation.

Ultimately, Saudi-China economic relations represent one of the most important axes in the reshaping of the global economic order. From oil trade in yuan to NEOM’s smart city projects, from Huawei’s technology partnerships to joint investment funds, Riyadh and Beijing are building a partnership that transcends the conventional logic of supplier-buyer relations toward a model of strategic integration that is redrawing the map of economic power in the twenty-first century. To stay informed on the latest developments in this arena, follow The Middle East Insider for continuous in-depth analysis.

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