Saudi-China EV joint manufacturing and sales of $10 billion, Saudi-Korea $160 million ‘joint fund’
An agreement was reached on joint manufacturing and sales of electric vehicles between the Saudi government and a Chinese electric vehicle company, and a $10 billion agreement was announced on the 11th as a joint investment agreement in renewable energy.
At a meeting in Seoul on the 11th between Small and Medium Venture Business Minister Lee Young and Saudi Minister of Commerce Al-Qasabi Al-Husseini, Minister of Small and Medium Business Administration, they agreed to invest 150 million dollars from Saudi Arabia and 10 million dollars from Korea to create a joint fund of 160 million dollars.
Korea Venture Investment signed a memorandum of agreement (MOA) with Saudi Venture Investment (SVC) on the 12th and announced that it would strengthen business cooperation to create a joint fund and vitalize the venture ecosystem between the two countries.
The signing ceremony held in Korea is a follow-up to the business agreement for investment cooperation and startup support between the two countries signed by Crown Prince bin Salman and President Yoon Seok-yeol in Korea last November. ' was announced on the 11th that a $5.6 billion 'research, manufacturing and sales' contract between the Saudi Arabian Investment Authority and Chinese electric car company Human Horizon and a $530 million steel plant and $500 million copper mining contract.
AFP reported on the 12th that more than half of the investment contracts between China and Saudi Arabia in the amount of 10 billion dollars were signed, and cooperation in various fields such as technology, agriculture, renewable energy, real estate, and natural resources tourism was discussed. Hundreds of Chinese officials and executives attended, and officials from Chinese companies sanctioned by the US were invited.
The Saudi Arabian Investment Agency announced an investment agreement for Chinese companies to participate in copper mining and renewable energy in Saudi Arabia, The New York Times reported on the 13th.
"If you want one of the best partners in the world as a reliable partner in the world, it would be the People's Republic of China," said Mohammed Abunayan, chairman of the Saudi Renewable Energy Company, speaking at the forum. "China is a partner you can rely on."
On the 8th, right before this event, US Secretary of State Anthony Blinken visited Saudi Arabia and held a meeting with foreign ministers. At a press conference on the outcome of the meeting, the Saudi foreign minister said, “The kingdom values its close relationship with the United States, but it has difficulties with China, its largest trading partner. We have no plans to distance ourselves,” he said.
“We are reaching out to everyone, and we welcome anyone who wants to invest with us,” Saudi Energy Minister Prince Abdul Aziz bin Salman said in his forum address on the 11th.
Prince Abdul Aziz is the de facto younger brother of Crown Prince Mohammed bin Salman, the ruler of Saudi Arabia.
When asked how he responded to criticism as ties between Saudi Arabia and China grew, he said, "I completely ignore that. There is no such thing as grandiose design between us and China. But I have to say it clearly and bluntly. We is collaborating with them on a lot of things."
The Arab-China Forum held in Riyadh, Saudi Arabia, was the 10th, and the first and largest event hosted by Saudi Arabia.
Among the invited Chinese companies were US-sanctioned AI company Sense Time and genome company BGI Group.
The NYT said, “The Pentagon last year classified a division of the BGI Group as one of the ‘Chinese military companies operating in the United States’ and put it on the sanctions list.”
SenseTime, a leading Chinese artificial intelligence company, has been blacklisted by the US government for contributing to the Chinese government's surveillance of ethnic minorities and restricting its ability to do business with US companies.
BGI Group set up a virology lab in Saudi Arabia during the coronavirus pandemic, and "talked warmly about its business relationship with the Saudi government" at the forum, the NYT reported.
Saudi officials have announced that they will open Chinese language classes in Saudi schools, and Chinese characters have already appeared on road signs in China.
Hu Chunhua, vice chairman of the People's Political Consultative Conference of China, said in a keynote speech at the forum that "Chinese President Xi Jinping visited Saudi Arabia in December of last year and ushered in a 'new era of cooperation' between Arab countries and China."
Crown Prince Bin Salman, the de facto ruler of Saudi Arabia, was treated as a state guest from a luncheon with President Seok-Yeol Yoon in Korea on November 17 last year, and Nihon Keizai said in response to the notice of cancellation of the cancellation of his originally scheduled visit to Japan, “It was the Crown Prince’s own decision.” 11 reported on the 23rd.
Regarding the reason for the cancellation, Nihon Keizai said, “The place Saudi Arabia is approaching is China,” and said, “The crown prince will follow the development path without Chinese-style democratization, leaving behind the long-term task of de-oiling and some dissatisfaction.” Saudi Arabia is Japan’s largest crude oil producer. is a supplier
Regarding the Saudi crown prince's visit to Korea, Minister for Economic Affairs Choi Sang-mok said, "Our company has signed a total of 26 MOUs with Saudi Arabia worth at least $29 billion, and the content is specific and Saudi Arabia has a strong will to realize it, so the possibility is very high." When the evaluated Neom City materializes, it is expected that additional significant scale achievements will be added,” he said on November 23 last year.