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Promoting International Trade and Economic Cooperation between China and Gulf Countries through Tech

2023-06-28

In recent years, China and Gulf countries have engaged in comprehensive industrial docking in manufacturing, construction machinery, industrial internet platforms, and other fields, as well as all-round cooperation in digital economy, e-commerce, artificial intelligence, 5G, and other fields. China has a large number of projects landing in Gulf countries. It is understood that recently China Energy Engineering Corporation Co., Ltd. signed a series of cooperation agreements with well-known Saudi multinational companies such as Saudi ACWA Power, ALJOMAIH and so on, to further promote cooperation in various fields such as city construction, new energy, desalination, strategic water storage, water transmission pipeline network, etc. in Saudi Arabia and even in the world's third market.

In the context of slowing global economic growth, Gulf countries value China's positive role in promoting global economic recovery and multilateral trade cooperation, and actively engage in international trade and economic cooperation with China, bringing more opportunities for the region to overcome the impact of the epidemic, regain economic development momentum, and achieve economic transformation in various countries.

Although some European and American countries are still strongly protectionist, and global and regional cooperation has weakened in recent years, the Arab Yellow Book: Arab Development Report (2022) (hereinafter referred to as the "Yellow Book") jointly released by Beijing Language and Culture University and Social Sciences Academic Press on June 22, 2023 pointed out that cooperation between China and Gulf countries in the field of artificial intelligence and digital technology has entered a new stage.

The Yellow Book pointed out that under the framework of the "the Belt and Road Initiative", China has further expanded its investment in ports, infrastructure construction and transportation in Gulf countries. In order to facilitate the timely sales of products exported by China to the region and the world, China and the United Arab Emirates have jointly built the Halifa Port Phase II Container Terminal, making it one of the important hub ports in the Gulf region and a landmark project for cooperation between China and Gulf countries.

Currently, China's cooperation with Gulf countries has expanded from traditional energy fields to broader international trade fields such as artificial intelligence, e-commerce, life sciences, and Beidou satellite. Gulf countries are accelerating cooperation with China in the construction of digital infrastructure. It is reported that Huawei has helped Gulf countries establish 14 5G networks in the 5G field, covering over 95% of the population in the Gulf; Jointly with the Saudi Arabian Data and Artificial Intelligence Authority in the field of artificial intelligence, the first national artificial intelligence center has been established for Saudi Arabia.

In terms of high-tech production capacity cooperation, since 2020, Chinese enterprises have increased their investment in Byblos Industrial City, Royal commission of Saudi Arabia. The cooperation between the two sides has expanded from oil refining to high-tech fields such as aviation, smart cars, AI control modules, new plastic materials, and Electron optics.

The Yellow Book points out that the international trade cooperation between China and Saudi Arabia also indicates that China's 14th Five Year Plan and Saudi Arabia's 2030 Vision plan are further docking, which creates more opportunities for cooperation between the two sides. If Gulf countries want to achieve economic diversification solely on their own, it is difficult to achieve it smoothly. They need to cooperate with economies like China that have complete industrial systems, complete industrial supporting facilities, and large industrial scales to truly break away from their dependence on energy. Taking advantage of China's open and developing economic express, Gulf countries not only contribute to the adjustment of their own energy structure, but also contribute to the transformation of their economic development mode. The high-tech industry cooperation between China and Gulf countries has entered a new stage of development. China's construction of a Dual circulation is also more closely aligned with the development goals and strategies of the Gulf States. China's development needs to rely on energy, which is also the foundation of cooperation between China and Gulf countries. Starting from the reality of ensuring China's energy and investment security in the Gulf region, both sides urgently need to, on the basis of common interests and guided by the concept of promoting regional peace through common development, promote the gradual establishment of an open, inclusive, and win-win regional international trade and economic development community between China and Gulf countries.

In addition, China has joined hands with Gulf countries to fight the epidemic and deepen cooperation in vaccine testing. China and the Gulf countries stood guard and helped each other in the fight against the COVID-19 and overcame the difficulties together. During the most difficult period of the COVID-19 outbreak in China in 2020, the United Arab Emirates provided timely medical assistance to China. Similarly, when responding to the COVID-19 epidemic, China provided assistance to Gulf countries, such as Iraq, the United Arab Emirates and Iran. In order to help Gulf countries fight against the epidemic, China was the first to commit to providing COVID-19 vaccine as a public product to developing countries and take positive actions. In addition to providing vaccines, China also provided anti epidemic materials (such as testing reagents and protective materials), dispatched professional medical personnel, held online anti epidemic training, and shared prevention and control experience. Both sides have conducted practical and effective cooperation in international trade fields such as information sharing, vaccine research and development, and medical security.


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