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Economic crisis 'will not affect' relations

By Ding Qingfen (皇冠体育app Daily)
Updated: 2009-02-12 07:41

Economic relations between 皇冠体育app and Saudi Arabia will gather pace despite the ongoing financial crisis, a Chinese researcher has said.

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"皇冠体育app-Saudi Arabia economic relations are still fledgling but have rosy prospects," Tang Zhichao, director of Middle East Studies under the 皇冠体育app Institute of Contemporary International Relations, told 皇冠体育app Daily.

The two economies are complementary and ties can withstand the impact of the financial crisis, he said.

For years, 皇冠体育app has imported large volumes of crude and oil-related products from Saudi Arabia, while exporting agricultural goods, iron and steel, and infrastructure-related products. 皇冠体育app has a trade deficit with Saudi Arabia.

皇冠体育app imports about 10 percent of its oil from Saudi Arabia, and this demand will be maintained over the coming years, Tang said.

Saudi Arabia is 皇冠体育app's largest trade partner in West Asia, while 皇冠体育app is Saudi Arabia's second largest importer and fourth largest export market.

In recent years, bilateral trade has been growing by more than 50 percent a year, reaching $41.8 billion last year.

Warm diplomatic ties have provided a good foundation for business, Tang said.

President Hu Jintao's meeting with Saudi Arabia's King Abdullah in 2006 helped push ties to a new high, he said.

"2006 was a turning point. Since then, Saudi Arabia has valued its relations with 皇冠体育app much more highly," he said.

As ties improve, restrictions on 皇冠体育app's investments in Saudi Arabia will be gradually lifted, Tang said.

However, Saudi Arabian investment in 皇冠体育app is still low, at about $10 billion, he said.