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Saudi Arabia and Huawei sign strategic deal

December 10, 2022 at 11:57 am

Chinese President, Xi Jinping (L) is welcomed by Crown Prince of Saudi Arabia Mohammed bin Salman Al Saud (R) at the Palace of Yamamah in Riyadh, Saudi Arabia on December 8, 2022. [Royal Court of Saudi Arabia – Anadolu Agency]

In a step that raises the level of relations between the two countries, Saudi Arabia and China signed strategic agreements during the Chinese president’s visit to Riyadh. The most prominent was an agreement with the Chinese technology giant Huawei, which is subjected to US restrictions.

A memorandum of understanding was signed with the Chinese company Huawei for technology in cloud computing and building high-tech complexes in Saudi cities. This occurred despite concerns from the US and allies about potential security risks in using the technology of the Chinese company, which participated in establishing fifth-generation networks in most Gulf countries.

Saudi King Salman Bin Abdulaziz signed a comprehensive strategic partnership agreement with the Chinese president, who received a warm welcome in a country forging new global partnerships that extend far beyond the West.

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The Saudi energy minister said that Riyadh will remain China’s reliable partner in the energy field and that the two countries will enhance cooperation in energy supply chains by establishing a regional hub in the kingdom for Chinese factories.

The Saudi Press Agency (SPA) also reported that Chinese and Saudi companies had signed 34 investment agreements in clean energy, information technology, cloud computing services, transportation, construction and other sectors. The agency did not issue figures for the deals but confirmed earlier that the two countries would sign initial agreements worth $30 billion.

Tang Tianbo, a Middle East specialist at the China Institutes of Contemporary International Relations (CICIR), a Chinese government-affiliated think tank, said the visit would result in expanded cooperation in the energy field.

SPA also disclosed that the signed agreements include a petrochemical project, development of housing projects and teaching languages without providing details about their content or financial value.

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