Shifting Global Ties: The Growing Economic Alliance Between China and the Gulf

A report by Theresia Rahmeh, English adaptation by Nadine Sassine

In 2018, the US became the world's largest oil producer. Years before that, it had already begun reducing its reliance on Gulf oil. The US has since become the largest supplier of oil to the European Union, after the EU successfully adapted to shifts in the oil market and significantly reduced its dependence on Russian oil.

This shift has made Gulf oil less important to the West, with countries like China, India, and Japan becoming the largest importers from the Gulf. Amid these global changes, China and the Gulf are now closer than ever before, and this growing relationship is set to have a major impact on the global economy. Together, these two entities represent 22% of the global economy, according to an analysis by Oliver Wyman.

This is why, when the Chinese Premier and Saudi Crown Prince Mohammed bin Salman met, the main topic of discussion was the oil and energy sector. The relationship between China and the Gulf has developed rapidly, with China now importing 80% of its oil from the Gulf. At the same time, Gulf countries have been increasingly importing consumer goods from China in recent years.

In 2023, trade between China and the Gulf Cooperation Council (GCC) countries reached approximately $287 billion, according to Chinese customs data. Saudi Arabia accounts for nearly 40% of this trade, according to GCC data.

Beyond oil, Riyadh is actively working to involve Chinese companies more deeply in the major projects that are central to Saudi Arabia's Vision 2030. The changing map of global economic interests could present new investment and trade opportunities for the GCC countries with China, and these opportunities are expected to significantly boost economic growth in the region.