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CHINA> China Daily Exclusive
Economic crisis 'will not affect' relations
By Ding Qingfen (China Daily)
Updated: 2009-02-12 07:41

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

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

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

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

China 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 China's largest trade partner in West Asia, while China 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 China much more highly," he said.

As ties improve, restrictions on China's investments in Saudi Arabia will be gradually lifted, Tang said.

However, Saudi Arabian investment in China is still low, at about $10 billion, he said.

 

 

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