TRADE BETWEEN SAUDI ARABIA AND CHINA

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Diplomatic ties between nations are of great importance as the saying goes no nation is an island in matters concerning trade; it is unimaginable to have oil as the key economic resource but lack market for this important good?

It is of importance to maintain the long existed trade the between China and Saudi Arabia traceable to 1980s and which formed deep inter-relations in 1990s necessitating diplomatic interventions to make trading between the countries formal. Mutual benefits and comparative advantage in production and marketing of goods and services, between the two countries proofs the importance of the partnership evident by the remarkable economic achievements of these nations.

The earliest formal talk between the two nations is traced back to 1985 and later in 1989 Saudi Arabian minister for foreign affairs forwarding credentials to the foreign affairs minister of China, which resulted to the upgrading of trade between the two civilizations.

Diplomatic relations were, established between China and Saudi Arabia. These diplomatic ties were established to firstly for economic benefits, as Saudi Arabia was the main supplier of oil to China estimated at 40% annually. Due to this dependence China, strengthen its efforts to maintain the relationship.

Secondly, Saudi Arabia after the Second World War had recognized China as a sovereign state. Initially the partnership between the two countries was based on Agriculture. In the recent years China and Saudi Arabia have been conducting exchange high profile visits and programs that have ensure mutual political trust and understanding.

China and Saudi Arabia have made progressive achievements in economic stabilization and development due to the harmonized trade networks and friendly leadership between them. In the year, 2011 China Gross Domestic Product (GDP) reached 47.1 trillion Yuan with foreign reserves standing at 21.2 trillion Yuan in 2012. China trade volume was the largest in the world in the year 2011, with China-Saudi Arabia trade volume estimated at 421.28 billion Yuan

The trade between Saudi and China in the year 2012 reached the world record of US$73.4 billion. The increased open market for its products is attributed to the solid relationship with Saudi Arabia which despite of the various challenges it has continued gearing the economies and bilateral cooperation in various sectors of the two nations.

The trade relationship between Saudi Arabia and China had brought with it Military, Nuclear cooperation and Scholarship and aid. Saudi Arabia has been the largest donor to China.

Furthermore, students learning exchange programs have been rampant in recent years. Various scholars who happened to utilize those opportunities for their academic wellbeing have testified the benefits of such programs. With social interaction amongst citizens of the two civilization, cultural, educational, scientific and educational exchanges increases for instance students from China have been attending forums held in Saudi while also students from China attend forums hosted by Saudi.

There exists no doubt that the rooted trade between Saudi and China is of great importance as it is the reason behind increased economic milestone development of the two states. Trade is of high benefit amongst nations, currently several nations are in bid for trading partners and so Saudi Arabia and China must be lucky to maintain their trading relationship. It is therefore high recommendable that the two nations to uphold the tie for their own benefit and struggle to improve the living standards of their citizens.

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