Khaleej Times EDITORIAL
Saudi-China Ties in a New Era
13 February 2009
As China and Saudi Arabia continue deepening their friendly strategic ties with high-level political interaction and robust economic relations, how far the relationship might develop in strategic terms is a question that is of primary concern.
Even though China is as yet far from reaching the level of strategic exchange the US enjoys with Saudi Arabia and other Gulf states, there is speculation that the rapid development of political-economic relations could also develop strategic dimensions.
The alleged covert sale of Chinese DF-3 (CSS-2) missiles to the Saudis in late 1980s had prompted concern in Washington at the time. The development of a strategic alliance with China as a natural development of the Look East policy being pursued with Saudi Arabia is not a far-fetched possibility and one that may materialise considering the cordiality and trust apparent in the existent Sino-Saudi ties.
President Hu Jintaos visit to Saudi Arabia, the second since 2006, included a significant dimension that stressed on mutual cooperation to deal with the ongoing global financial crisis. China proposed the establishment of a joint safeguard mechanism against financial risks to ensure the economic and financial stability of both the states. Additionally, increased coordination and closer communication on reforming the world financial system was emphasised as necessary measures that would be used, for the upcoming Financial Summit of the group of 20 countries to be held in London in April this year. 
As Saudi Arabia reiterated its commitment with China, established in 2006 with King Abdullahs first foreign visit following his ascension in January 2006, five more agreements were signed between the leaders in the energy, health quarantine, transportation and culture sectors. Saudi Arabia remains Chinas largest trade partner in West Asia and North Africa with 
bilateral trade between the two registered at $41.8 billion in 2008.
As the worlds second largest importer of oil, China, in order to meet its growing demand for energy has been looking at increasing its energy imports that included LNG from Saudi Arabia. Its oil imports in 2008 from Saudi Arabia stood at 720,000 barrels per day. Both states are looking at establishing multi-billion dollar projects in the energy sector, these include a $ 5.2 billion oil refinery and petrochemical project in China and a Chinese project in the exploration and production of natural gas in Rub Al Khali Basin in Saudi Arabia. Besides energy, other sectors have witnessed a growth in trade with Chinese exports to Saudi consisting of cars, textiles and other commodities in the food and health care industry. 
Saudi assistance of $50 million in cash and $10 million in goods to the earthquake-hit Sichuan province in 2008 also generated a lot of goodwill in Beijing.
Chinas policy of cultivating a multifaceted relationship with Saudi Arabia is also important in ideological terms as China has had problems in Xinjiang province where it has a restive 7.2 million Muslim Uighur population. 
Besides bolstering ties with the worlds largest oil producer and the leader of Arab-Muslim world, this visit will also help China focus on its relations with the GCC. President Hus meeting with the GCC Secretary General Abdur Rahman Attiya, gave an opportunity for China to press for expediting the Free Trade agreement. The Gulf region has clearly come to acquire strategic significance in the emerging superpowers foreign policy.

