On December 7, Chinese President Xi Jinping is visiting Saudi Arabia, in a three-day trip that comes at the invitation of Saudi Arabian King Salman bin Abdulaziz Al Saud. Here are our insights into the possible outcome of the visit.
Host of Hefty Deals?
A Saudi news outlet reported earlier this week that an array of agreements, including those related to energy and infrastructure, worth more than $29 billion is expected to be signed during Xi Jinping’s visit to Riyadh.
According to the outlet, in addition to over 20 preliminary accords set to be inked on the sidelines of the Sino-Saudi summit, Beijing and Riyadh may also sign a document on strategic partnership, as well as agree on a “harmonization” plan between the long-term programs of the two countries, including the Saudi program "Vision-2030" and the Chinese initiative "One Belt - One Road".
The summit between the Chinese president and the Saudi King will also be attended by Saudi Arabian Crown Prince Mohammed bin Salman.
As for the agenda of Xi's trip to Saudi Arabia, it also includes the Arab Gulf-Chinese summit for cooperation and development, and the Arab-China meeting with the leaders of the Gulf Cooperation Council (GCC) comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
'Double Impact' on US
Some experts believe that the Chinese president’s visit to Saudi Arabia can be perceived as a double blow to the US, which is trying to dictate its terms to the global energy market.
The experts argued that the visit can be touted as a landmark event that goes beyond the current situation with oil prices because Xi will meet not only the leaders of Saudi Arabia, but also senior officials from the Persian Gulf countries – at gatherings where “new relations between China and the Arab world” as well as Beijing and the international oil and gas community will be discussed.
According to some analysts, the very fact of these meetings is “epoch-making and revolutionary” - a sign that they believe shows that the new world order is becoming more real.
The experts added that Washington had long tried to prevent Xi’s visit to Riyadh, but to no avail. According to them, the fact that the visit will take place reflects China's growing international clout.
Washington's Tensions With Beijing, Riyadh
Xi is traveling to Saudi Arabia as Washington’s tensions with Riyadh and Beijing show no sign of ceasing.
In October, US President Joe Biden warned that there would be "consequences" for Saudi Arabia over its move to reduce oil output earlier that month, declining to elaborate, however, on what step he may take.
In early October, the OPEC+ group of oil producers, including Saudi Arabia and Russia, announced that they had agreed to cut oil production by two million barrels per day from November and will take production levels agreed for August as a reference point. The move was made in response to uncertainty in global oil market outlooks, in part caused by Western sanctions on Russian energy deliveries and the G7 plans to introduce a price cap on Russian crude.
Saudi Arabia's Foreign Ministry rejected claims that the oil cut was "politically motivated against the United States" or that the Saudis were "taking sides" in the Ukraine conflict. The Saudis stressed that the decision was made unanimously by OPEC+ members and that the move was "based purely on economic considerations."
US-China relations worsened after then-US House Speaker Nancy Pelosi visited Taiwan in early August. Beijing slammed Pelosi's trip as a gesture of support for separatism, launching large-scale military exercises in the vicinity of Taiwan. Nevertheless, several countries, including France, the United States, Japan and others, have sent their delegations to the island since then, further increasing tensions in the Taiwan Strait.
Although the US does not enjoy formal diplomatic relations with Taiwan, Washington maintains a representative office in Taipei, remaining the island's biggest supplier of military hardware.
Beijing considers the island an integral part of the PRC, sticking to a policy of peaceful reunification under a "One China – Two Systems" model.