New | China, Saudi Arabia upgrade diplomatic ties as Riyadh seeks new allies

China and Saudi Arabia have vowed to elevate their ties to form a comprehensive strategic partnership as President Xi Jinping continues touring the Middle East and seeking greater presence in the region.

Observers say it is China’s first time establishing such a partnership with a western Asian nation, as the Arab state – once a staunchly anti-communist nation and a close ally of the United States – diversifies its diplomatic ties.

Xi kicked off his trip in Saudi Arabia on Tuesday and visited Egypt on Wednesday. He will wrap up his tour in Iran, just days after economic sanctions on the country were lifted last week following its agreement to roll back the scope of its nuclear activities.

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During Xi’s two-day stay in Riyadh, China and Saudi Arabia, the world’s biggest oil importer and producer respectively, signed 14 agreements and memoranda of understanding, including massive oil deals and pacts to speed up China-Gulf region free-trade talks and build a nuclear reactor.

A joint statement by the two states said China supported Saudi Arabia’s counterterrorism efforts and would step up cultural and religious exchanges. They would also set up a high-level committee to guide bilateral cooperation.

In another agreement on Tuesday, Beijing signalled its support for Yemen’s Saudi-backed government, which is fighting Iran-allied Houthi militia.

Saudi Arabia weighs significantly in China’s energy security. In 2014, Beijing bought nearly 50 million tonnes of crude oil from it – 16 per cent of its oil imports and the most from a single country.

But its importance to China has been weakened as Beijing diversifies its energy sources. By October, oil trade between the two nations had dropped more than 10 per cent year-on-year, with Russia occasionally overtaking Saudi Arabia as China’s top monthly oil supplier.