Saudi Arabia seeks Chinese tech as it reinvents itself as car and automation hub

Saudi Arabia is seeking cooperation with Chinese companies in the car sector and automation as a top industrial official kicks off a tour of East Asia this week.

Saudi industry and mineral resources minister Bandar Alkhorayef is leading a delegation to visit Guangzhou, Hong Kong and Singapore from Sunday until September 8, according to a statement from his office. The trip is aimed at improving relations and exploring joint venture opportunities.

China and Saudi Arabia have strengthened ties in recent years while their relations with the United States have soured. Riyadh is looking to diversify its economy and become an industrial hub in the Middle East, while the region is gaining appeal for Chinese companies that want to explore overseas markets in the face of growing containment by the US.

“The visit of the delegation to China aligns with [the country’s] objective to become a key automotive hub in the region and a leader in innovative [and] eco-friendly vehicle solutions,” Alkhorayef’s office said.

Key meetings in Guangzhou, capital of the southern Chinese province of Guangdong, will include discussions with GAC Group, a major electric vehicle (EV) maker, as well as lithium battery producer General Lithium and communication tech giant Huawei, the statement said.

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Saudi Arabian industry and mineral resources minister Bandar Alkhorayef’s visit to Guangzhou, Hong Kong and Singapore is aimed at improving relations and exploring joint venture opportunities. Photo: Handout

Chinese EV makers are facing punitive tariffs from the European Union and the US, which have accused China of flooding their markets with subsidised EVs that pose a national security risk with their “connected” car technology.

According to Alkhorayef’s office, the automotive sector is a key focus of Saudi Arabia’s national industrial strategy, which emphasises developing the car industry and incorporating innovative technologies.

It added that the talks with Huawei will discuss opportunities for collaboration in “innovative smart solutions” and leveraging technologies for the “Fourth Industrial Revolution”, referring to a 21st century wave of hi-tech progress aided by advancements in artificial intelligence, robotics and the Internet of Things.

“Saudi Arabia aims to attract high-quality investments in 12 promising industrial sectors, including automotive, pharmaceuticals, and food, supported by a stimulating investment environment,” the statement said.

“The visit is expected to result in partnerships that [focus] on mutual growth through high-quality investments, sustainable development, and economic diversification, particularly in strategic industrial sectors.”

According to figures from Saudi Arabia’s Ministry of Industry and Mineral Resources, China is the Middle Eastern kingdom’s biggest trading partner, with trade exceeding US$100 billion in 2023.

The data also shows that Chinese investment in Saudi Arabia last year included US$5.6 billion in original equipment manufacturing for the automotive industry and US$5.26 billion in the minerals sector, with semiconductor investment amounting to US$4.26 billion.

According to official Chinese data, the total value of goods exported to Saudi Arabia from January to July was US$27.55 billion, an increase of nearly 12 per cent compared to the same period last year. Meanwhile, the total value of goods imported from Saudi Arabia decreased by 7.3 per cent compared to the same period last year to US$34.97 billion.

In Hong Kong, the delegation will meet the city’s chief executive as well as officials in charge of technology and industry development.

In Singapore, the Saudi delegation will meet the deputy prime minister and senior trade and science officials.

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