Gulf-China trade relations reach new heights: A timeline of key developments

News Bulletin Reports
2024-09-15 | 12:00
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Gulf-China trade relations reach new heights: A timeline of key developments
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Gulf-China trade relations reach new heights: A timeline of key developments

Report by Theresia Rahme, English adaptation by Mariella Succar

Following a long history of cooperation, Gulf-China relations are stronger today than ever before.

The partnership has evolved significantly, with several vital milestones shaping its trajectory.

In 1992, China took a significant step by inviting Gulf Cooperation Council (GCC) countries to a conference in Beijing, initiating cooperation based on the region's security and stability.

With a growing interest in energy investments, China began direct negotiations with the Gulf to enhance its involvement in the sector.

By 1995, Chinese exports to Gulf countries began to surge, and by 2000, they had increased more than sevenfold.

This rapid growth was driven by the GCC's decision to expand its international trade partnerships.

A significant development came in 2010 when the GCC and China signed a memorandum of understanding covering trade, investment, energy, and education. This agreement coincided with an increase in Gulf exports to China.

By 2015, Gulf exports to China reached $62 billion, rising to $190 billion by 2022.

However, this growth was challenging. Chinese exports to the Gulf faced fluctuations, mainly due to concerns among GCC nations about competition and its potential impact on local manufacturing industries.

Gulf imports from China dropped from $83 billion in 2015 to $75 billion in 2018. However, following intense negotiations, trade rebounded sharply, with imports reaching $126 billion by 2022. Total bilateral trade between the two regions hit $287 billion last year.

China is now pushing to speed up free-trade negotiations with the Gulf. Whether this relationship will remain cooperative or become competitive in the future remains to be seen.
 

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China

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