Editorial | The many benefits of having stronger ties with the Arab world
- Arab-China Business Conference was not only about making deals, but also enhancing better understanding of each other’s culture, political systems, and economic and investment environments
Business between China and the Arab world is thriving. Deals that emerged from the latest Arab-China Business Conference are evidence of that. But they are dwarfed by the potential of the growing economic relationship with the region. Agreements worth about US$10 billion, mainly with Saudi Arabia, included a US$5.6 billion partnership between Shanghai electric carmaker Human Horizons and the Saudi investment ministry.
But it is the facts and figures about the two-day event, just a week after a visit to Saudi Arabia by American Secretary of State Antony Blinken, that really reflect the fluid nature of geopolitics and a changing world order. More than 3,500 government and business representatives attended from 23 countries and regions, including the mainland and Hong Kong. The mainland delegation of some 1,200 was led by Chinese People’s Political Consultative Conference vice-chairman Hu Chunhua. Saudi Arabia alone was represented by nine ministers, three deputies and dozens of officials.
China and the Arab region need each other to develop their business sectors and economies. Saudi Arabia in particular seeks to reduce heavy dependence on oil, of which it is a major supplier to China. The electric vehicle assembly deal is telling, given that the nation is choked with petrol-guzzling cars and running on cheap oil. The EV plant will cost double the US$2 billion that Tesla spent building its Gigafactory in Shanghai, and aims to make a product that currently no one is using in Saudi Arabia. The other deals signed spanned technology, renewable energy, agriculture, real estate, metals, tourism and healthcare.
The Arab ministers spoke of bilateral trade, strategic partners and historical ties. But an equally powerful message was delivered behind closed doors to a small delegation of two scores of executives led by Hong Kong tycoon Ronnie Chan.
Saudi minister of investment Khalid Al-Fahid called for enhanced people-to-people cultural exchanges. After all, relationships are not just built on capital flows, or trade volumes, but include everyday experiences. Intangibles are important. During the conference, for example, many Arab delegates spoke Putonghua, while many Chinese spoke fluent Arabic, proof that cultural exchange is already well under way.
The conference, now in its 10th year, has been instrumental in developing the relationship between China and the broader region. That is reflected in an appetite for better understanding of each other’s culture, political systems, and economic and investment environments. It is time for the next step – for the relationship to mature into friendships and business partnerships.