China's Xi on 'epoch-making' visit to Saudi as Riyadh chafes at U.S. censure (updated)

Grand Gulf Energy

07/12/2022 13:33

(Adds investment deals signed)
    By Aziz El Yaakoubi and Eduardo Baptista
       RIYADH, Dec 7 (Reuters) - Chinese President Xi Jinping
began a visit to Saudi Arabia on Wednesday that Beijing said
marked its biggest diplomatic initiative in the Arab world, as
Riyadh expands global alliances beyond a long-standing
partnership with the West.
    The meeting between the global economic powerhouse and Gulf
energy giant comes as Saudi ties with Washington are strained by
U.S. criticism of Riyadh's human rights record and Saudi support
for oil output curbs before the November midterm elections.
    The White House said Xi's visit was an example of Chinese
attempts to exert influence, and that this would not change U.S.
policy towards the Middle East.
    "We are mindful of the influence that China is trying to
grow around the world," White House National Security Council
spokesperson John Kirby told reporters.
    China, the world's biggest energy consumer, is a major trade
partner of Gulf oil and gas producers. Bilateral ties have
expanded under the region's economic diversification push,
raising U.S. concerns about growing Chinese involvement in
sensitive infrastructure in the Gulf.
    Energy Minister Prince Abdulaziz bin Salman on Wednesday
said that Riyadh would remain a "trusted and reliable" energy
partner for Beijing and that the two countries would boost
cooperation in energy supply chains by establishing a regional
centre in the kingdom for Chinese factories.
    Saudi Arabia is China's top oil supplier and Xi's visit
takes place while uncertainty hangs over energy markets after 
Western powers imposed a price cap on sales of oil from Russia,
which has been increasing volumes to China with discounted oil.
    On Wednesday Chinese and Saudi firms signed 34 deals for
investment in green energy, information technology, cloud
services, transport, construction and other sectors, Saudi state
news agency SPA reported. It gave no value for the deals, but
had earlier said the two countries would seal agreements worth
$30 billion.
    'EPOCH-MAKING VISIT'
    Xi was met on arrival by the governor of Riyadh, the
kingdom's foreign minister and the governor of sovereign wealth
fund PIF.
    Crown Prince Mohammed bin Salman is expected to offer him a
lavish welcome, in contrast with the low-key reception for U.S.
President Joe Biden whose censure of Saudi Arabia's de facto
ruler formed the backdrop for a strained meeting in July.
    Xi will hold bilateral talks with Saudi Arabia and Riyadh
will later host a wider meeting with Gulf Arab states and a
summit with Arab leaders which will be "an epoch-making
milestone in the history of the development of China-Arab
relations", foreign ministry spokesperson Mao Ning said.
    The Chinese president said he would work with the Gulf
Cooperation Council and other Arab leaders "to advance
Chinese-Arab relations and Chinese-GCC relations to a new
level", SPA reported.
    For Riyadh, frustrated by what it sees as Washington's
gradual disengagement from the Middle East and a slow erosion of
its security guarantees, China offers an opportunity for
economic gains without the tensions which have come to cloud the
U.S. relationship.
    "Beijing does not burden its partners with demands or
political expectations and refrains from interfering in their
internal affairs," Saudi columnist Abdulrahman Al-Rashed wrote
in the Saudi-owned Asharq Al-Awsat newspaper.
    Unlike Washington, Beijing retains good ties with Riyadh's
regional rival Iran, another supplier of oil to China, and has
shown little interest in addressing Saudi political or security
concerns in the region. 
    Saudi Arabia, birthplace of Islam, had supported China's
policies in Xinjiang, where the U.N. says human rights abuses
have been committed against Uyghurs and other Muslims.
    Saudi officials have said that regional security would be on
the agenda during Xi's visit. The United States has for decades
been Saudi Arabia's main security guarantor and remains its main
defence supplier, but Riyadh has chafed at restrictions on U.S.
arms sales to the kingdom.
    Riyadh has said it would continue to expand partnerships to
serve economic and security interests, despite U.S. reservations
about Gulf ties with both Russia and China.
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Gulf states, looking East, to reinforce economic ties with China
as Xi visits Saudi     urn:newsml:reuters.com:*:nL8N32U00Z
Saudi prince seeks Mideast leadership, independence with Xi's
visit     urn:newsml:reuters.com:*:nL1N32U08A
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 (Reporting by Eduardo Baptista in Beijing and Aziz El Yaakoubi
in Riyadh; Additional reporting by Ghaida Ghantous and Maha El
Dahan in Dubai and Steve Holland and Doina Chiacu in Washington;
Writing by Dominic Evans and Ghaida Ghantous; Editing by Nick
Macfie, Toby Chopra and Alistair Bell)
 ((Dominic.J.Evans@Thomsonreuters.com, @DominicJEvans;))