China and Saudi Arabia to Boost Cooperation in New Energy
As Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, visits China and Singapore with an economic delegation, Chinese experts highlight the focus on enhancing collaboration in vehicle, automation, and technology sectors.
This visit aims to foster mutual growth in sustainable development and economic diversification. Analysts note that both nations have significant potential for new-energy cooperation, setting a global example for green transformation.
According to the Saudi Press Agency, the delegation will visit Guangzhou and Hong Kong. Key meetings in Guangzhou will involve discussions with GAC Group, General Lithium, and Huawei. This aligns with Saudi Arabia’s goal to become a regional automotive hub and a leader in eco-friendly vehicle solutions.
Pan Helin, an expert in the Information and Communication Economy, emphasized that deepening industrial cooperation with China will yield win-win results. Chinese green cars will aid Saudi Arabia’s energy transformation, while Saudi Arabia offers a broad market and capital support for Chinese automakers.
Several Chinese photovoltaic (PV) companies have entered the Saudi market, signing major deals to expand solar cell production and launch local energy storage projects. China Energy Engineering Corp recently signed a $972 million deal for a 2-gigawatt PV project in Saudi Arabia, and JinkoSolar announced a joint venture for a 10-gigawatt high-efficiency PV module project.
This new-energy collaboration aligns with Saudi Arabia’s Vision 2030 goals, aiming to increase the proportion of new energy to 50 percent by 2030. Pan noted that this bilateral cooperation also promotes global green economy development.
Financial market links between China and Saudi Arabia are strengthening. Two exchange-traded funds tracking large Saudi companies, including Saudi Aramco, recently debuted on the Chinese mainland stock market.
China remains Saudi Arabia’s largest trading partner, with bilateral trade surpassing $100 billion in 2023. Chinese investments in Saudi Arabia in 2023 included significant amounts in vehicle manufacturing, minerals, and semiconductors.