RIYADH: Even if the conflict in the Middle East were to end immediately, stabilizing supply chains will take time. Shipping companies will need to adjust their routes, manufacturers will need to process their orders, and the market will need to fully regain its confidence, according to the Chinese Consul General in Jeddah, Yang Yi, in an exclusive interview with Al-Eqtisadiah.
The consul explained that while shipping costs and insurance premiums have been affected by tensions in the Strait of Hormuz, Chinese shipments to Jeddah port remain stable.
Trade between Saudi Arabia and China reached $17.7 billion in the first two months of 2026, a 5 percent year-on-year increase. Chinese exports to the Kingdom during this period amounted to $9.8 billion, representing an increase of nearly 19 percent.
Yi, who recently assumed his post, explained that China’s exports to Saudi Arabia are primarily concentrated in electromechanical products, machinery, and vehicles, as well as furniture and steel. He added that Chinese direct investment jumped 164 percent to SR31.1 billion ($8.28 billion) by the end of 2024, with the manufacturing sector leading the way, reflecting the optimism of Chinese companies regarding the Saudi business environment.
Tell us about economic cooperation between Saudi Arabia and China
Since the establishment of diplomatic relations between China and Saudi Arabia in 1990, bilateral trade and economic relations have witnessed rapid growth thanks to the support and guidance of the leaders of both countries. The Kingdom is currently China’s largest trading partner in the Middle East, while China has maintained its position as the Kingdom’s largest trading partner globally for many years.
What was the volume of trade during the first quarter of this year?
In recent years, the volume of trade between China and the Kingdom has remained stable at over $100 billion annually.
China mainly exports electromechanical products, machinery, vehicles, furniture, and steel to Saudi Arabia, while its main imports are mineral fuels, chemical products, and plastics.
In the first two months of this year, trade between China and the Kingdom reached $17.7 billion, a year-on-year increase of 5.5 percent. Chinese exports to Saudi Arabia accounted for $9.8 billion of this total, representing an 18.7 percent increase. Neither country has yet released customs data for March, but fluctuations are expected due to factors such as shipping costs.
How does shipping affect the flow of goods from China to Saudi Arabia?
While Chinese shipping operations at Jeddah port remain relatively stable, the closure of the Strait of Hormuz due to the dispute has impacted international shipping costs, insurance premiums, and transit times, which may also affect the prices of traded goods. Even assuming an immediate end to the dispute, it will take time for shipping companies to adjust their routes, for manufacturers to place orders, and for the market to regain confidence.
Regarding investment, according to Saudi statistics, the stock of Chinese direct investment in the Kingdom reached SR31.1 billion by the end of 2024, with an investment inflow of SR8.6 billion that year, representing an increase of approximately 164 percent.
The manufacturing sector accounted for the largest share, followed by other sectors such as financial services and insurance, construction, and mining, as well as technology, trade, infrastructure, and healthcare. It is believed that with the continued improvement of the business environment in the Kingdom, Chinese companies will become more optimistic about the Saudi market, investing, operating, and capitalizing on development opportunities.
How do you see the prospects for economic and trade relations and cooperation between China and Saudi Arabia?
China and Saudi Arabia are comprehensive strategic partners with a deep-rooted friendship. In recent years, under the joint guidance of the two heads of state, China-Saudi Arabia relations have flourished. President Xi Jinping has forged a profound friendship and mutual political trust with the Saudi leadership.
With the deepening convergence between the Belt and Road Initiative and Saudi Arabia’s Vision 2030, the two sides have achieved fruitful results and broad prospects for practical cooperation in new energy, infrastructure, the digital economy, and green development.
The year 2026 marks the beginning of the 15th Five-Year Plan and the 10th anniversary of the establishment of the comprehensive strategic partnership between China and Saudi Arabia.
During the 15th Five-Year Plan period, China will adhere to the concept of global governance based on consultation, joint contribution, and mutual benefit. It will steadily expand high-level opening-up, promote the building of a community with a shared future for mankind, and propel the Chinese economy toward new and distinctive development.
China’s development will inject further impetus into the economic growth of countries around the world, including Saudi Arabia, bringing more new opportunities for practical cooperation between the two countries and greater benefits for both peoples.
The war in the Middle East threatens the global economy: how does China view these tensions?
The situation in the Middle East continues to deteriorate, with escalating conflicts impacting global economic and energy security, raising serious concerns within the international community.
Chinese President Xi Jinping has put forward four proposals for maintaining and promoting peace and stability in the Middle East.
First, stay committed to the principle of peaceful co-existence. The Gulf states in the Middle East are interpendent and inseparable neighbors. It’s important to support the Gulf states in improving their ties, work to build a common, comprehensive, cooperative and sustainable security architecture of the Middle East and the Gulf region, and consolidate the foundation for peaceful co-existence.
Second, stay committed to the principle of national sovereignty. Sovereignty serves as a foundation for all countries, especially developing countries, to survive and thrive, and it must not be violated. The sovereignty, security and territorial integrity of the Gulf states should be earnestly respected, and the safety of their personnel, facilities and institutions vigorously safeguarded.
Third, stay committed to the principle of international rule of law. We should safeguard the authority of international rule of law, reject selective application, and prevent the world from returning to the law of the jungle. It is important to firmly uphold the international system with the United Nations at its core, the international order based on international law, and the basic norms governing international relations underpinned by purposes and principles of the United Nations Charter.
Fourth, stay committed to a balanced approach to development and security. Security is a prerequisite for development, and development serves as a safeguard of security. All sides should work to create a sound environment for and inject momentum into the development of the Gulf states. China stands ready to share the opportunities of Chinese modernization with the Gulf countries, and work with them to foster favorable conditions for regional development and security.
Peace cannot be bought by force; a political solution is the only way forward. This is also a core element of President Xi Jinping’s Global Security Initiative. The urgent task is to immediately cease fire and return to the path of dialogue and negotiation to fundamentally resolve the issues and restore peace and stability in the Gulf region. All parties should demonstrate sincerity and end this war, which should never have happened, as soon as possible.
