International Relations
Mokhtar Ghasemi; Seied Saeed Mirtorabi Hoseini; Mohammad Vali Modarres; Farideh Mohammad Alipour
Abstract
IntroductionThe China–Saudi Arabia relations have witnessed significant growth and development from 2011 to 2022. Primarily driven by oil relations, the relations between the two countries have flourished in areas such as trade, investment, technology, and military cooperation. In December 2022, ...
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IntroductionThe China–Saudi Arabia relations have witnessed significant growth and development from 2011 to 2022. Primarily driven by oil relations, the relations between the two countries have flourished in areas such as trade, investment, technology, and military cooperation. In December 2022, the two countries established the highest level of bilateral ties by signing 34 investment agreements valued at around 30 billion dollars, spanning various sectors such as clean energy, hydrogen production, solar energy, information technology, transportation, medical and housing industries, and building materials factories. Furthermore, China’s oil imports from Saudi Arabia increased from 5 million and 66 thousand barrels per day in 2011 to 10 million and 852 thousand barrels per day in 2020. The figure remained above 10 million barrels during 2022, despite the challenges posed by the COVID–19 pandemic and unfavorable economic conditions. This trend Indicates growing relations between China and Saudi Arabia.China and Saudi Arabia have exchanged a large share of capital in the energy sector. The Saudi active presence in the Chinese oil market has positioned it as China’s largest trade partner in the West Asia and African region. The bilateral investment volume between the two countries stands at approximately 73 billion dollars. Saudi Arabia’s extensive investments aimed at controlling China’s oil import network, refineries, and petrochemical industry, along with its involvement in the plan to double China’s strategic oil reserve, underscore the importance of maintaining China’s energy market for Saudi Arabia. Consequently, given China’s status as the largest energy consumer and Saudi Arabia’s position as the largest oil exporter, both countries possess the requisite capacity to foster cooperation in this field.In addition, Vision 2030 and the One Belt One Road Initiative are strategic factors facilitating the expansion of China–Saudi Arabia relations. In this regard, the two countries have signed comprehensive strategic cooperation agreements, leading to the establishment of the High-Level Joint Committee. During the committee’s second meeting in Riyadh in August 2017, contracts valued at 70 billion dollars were signed. Moreover, an important milestone was reached by signing a memorandum of understanding between the two countries for the establishment of a joint investment fund worth 20 billion dollars. Furthermore, Industrial Development Fund, China’s Silk Road Fund, and Everbright Bank were established. These agreements, memoranda, and funds intend to expedite the development of China’s One Belt One Road Initiative and Saudi Arabia’s Vision 2030. Although China is trying to maximize its energy security by distributing its oil imports among different countries (e.g., the US), Saudi Arabia’s consistent share of approximately 20% in recent years remains of utmost significance.Literature ReviewSeveral studies have examined the topics of US energy policy and the development of China–Saudi Arabia relations. However, few works have linked these two phenomena in an analytical manner. The novelty of this article lies in its attempt to bridge this gap and provide an analysis by exploring the interplay between these two issues.Materials and MethodsThis research adopted a mixed methods design, utilizing both quantitative and qualitative data. Documents and library resources were used to collect the data. Relying on an examination of research, analytical and statistical texts, the study focused on indexing and defining variables and their influential factors in a bid to conduct an analytical and inferential exploration to elucidate the trends and interrelationships between the independent and dependent variables.ConclusionThe US–Saudi oil relations have witnessed unparalleled growth and encompassed various economic, political, and security sectors in recent decades. Furthermore, to ensure its own growth and development, it is imperative for China to maintain stability and security in the energy sector. This objective can be achieved through effective management of competition and, in certain instances, cooperation with the United States. The ongoing trend of expanding relations between China and Saudi Arabia in the energy sector is unprecedented, solidifying China’s position as a significant competitor to the United States. The growing China–Saudi Arabia relations are driven by the mutual needs in the energy sector and strategic development plans. Yet the present research aimed to analyze China–Saudi Arabia relations with an eye to the US energy policy, relying a neo-mercantilist approach. Consequently, the primary question addressed in this article is: how has the US energy policy during 2011–2022 influenced the dynamics of China–Saudi Arabia relationship. The study was based on the hypothesis that the US energy policy during 2011–2022, characterized by increased oil and shale gas production and a reinforced neo-mercantilist approach in the energy sector, played a crucial role in fostering closer ties between China and Saudi Arabia, primarily in the oil sector, and supported their efforts to broaden mutual cooperation across other fields. The hypothesis was tested through empirical and explanatory methods. The research findings suggest that China–Saudi Arabia cooperation is expected to expand further in the future, while taking into account the sensitivities associated with these relations from the perspective of the United States.
