15 articles · Updated · South China Morning Post · May 5
The total made China the Arab world’s largest trading partner, as ties expanded beyond oil into infrastructure, IT, ports, logistics, manufacturing and green energy.
The report says Gulf states including Saudi Arabia and the UAE are pushing to diversify their economies, attract high-tech manufacturing and prepare for a future less dependent on hydrocarbons.
It argues Hormuz tensions underline the need for a broader China-Gulf energy partnership centred increasingly on renewables, storage, electric vehicles, industrial localisation and green finance.
Beyond oil, are China and Gulf states building a new sustainable empire or a temporary alliance of convenience?
Is the Gulf's pivot to China a real post-oil future or a high-tech mirage born from regional crisis?
China-Arab Trade Hits $407.4 Billion in 2024: Drivers, Challenges, and Future Prospects
Overview
In 2024, China-Arab trade hit a record $407.4 billion, driven by Arab nations supplying 38% of China's energy imports and a sharp rise in Chinese exports like automobiles and textiles. Private sector trade surged, supported by anticipated visa-free policies and major investments from Gulf sovereign wealth funds in Chinese technology. This growth deepened economic ties beyond energy, with Gulf states expanding imports of Chinese electronics and collaborating on advanced technologies like 5G and AI. Despite stalled China-GCC free trade talks due to Gulf industrial protection and geopolitical balancing, bilateral deals and cultural exchanges are strengthening the partnership, ensuring resilient and multifaceted cooperation amid global uncertainties.