Beijing seeks stronger relations with Saudi Arabia amid global economic transformations


(MENAFN) During a meeting on Tuesday with Yasir Al-Rumayyan, the governor of Saudi Arabia's Public investment Fund (PIF), Beijing's Mayor Yin Yong expressed his hopes for the fund to expand its business operations within the Chinese capital. This development, reported by Chinese state media on Wednesday, highlights Beijing's strategic efforts to strengthen diplomatic and economic relations with Saudi Arabia, a key ally of the United States. This push comes as Beijing grows increasingly frustrated with what it perceives as Washington's use of economic policies as a strategic weapon, leading China to enhance its ties with countries across Europe, the Middle East, and Africa.

Mayor Yin Yong emphasized the vast investment opportunities available in China, encouraging PIF to facilitate the exchange of investments between Chinese and Saudi companies. He highlighted potential areas for cooperation, including industrial investment, green development, and energy transformation. In response, Governor Al-Rumayyan expressed optimism about maintaining close communication and collaboration with Beijing, particularly in the fields of sustainable development and renewable energy.

The PIF, one of the world's largest sovereign wealth funds, boasts a diverse investment portfolio that spans various sectors from date farms to multinational conglomerates. This meeting underscores a broader trend of increasing Gulf investment in China at a time when some Western financial firms are pulling back due to concerns about China's economic recovery and geopolitical risks. For instance, Qatar’s sovereign wealth fund recently agreed to purchase a 10 percent stake in China’s second-largest mutual fund firm. Additionally, China has approved its first exchange-traded fund focused on investing in Saudi stocks, further cementing the growing financial ties between China and the Gulf region.

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