Chinese State Councilor and Foreign Minister Wang Yi attends the ministerial meeting between China and the Cooperation Council for the Arab States of the Gulf (GCC) via video link in Beijing, capital of China, Nov. 9, 2020. Photo: Xinhua

The energy sector has been a major and stable part of economic cooperation between China and Gulf countries, the two sides should strengthen efforts on innovation cooperation as the sound bilateral ties has provided foundation, scholars and experts said Tuesday.

Over recent years, China and Gulf Cooperation Council (GCC) countries has enjoyed strong relations and as the innovation has become a crucial part of cooperation between China and GCC countries, two sides should joint hand to create a new chapter, Li Chengwen, ambassador for China-Arab States Cooperation Forum Affairs of China's Foreign Ministry, said at a forum that focuses on cooperation between China and the Gulf Countries under the COVID-19 pandemic.

Across traditional fields, the two sides can carry out cooperation on economic transformation and upgrading, such as the development of wind and solar plants, Li said, adding that in the new infrastructure field, there are many opportunities for cooperation in sectors including the development of 5G and smart city.

Citing the UAE as an example, Ding Long, professor of the Middle East Studies Institute under Shanghai International Studies University, said at the event that China's trade with the UAE was $49.2 billion in 2020, which is about 800 times higher than that of 1984 when the two countries officially established bilateral relations.

There are issues that exist within the China-UAE trade ties such as the high percentage of Energy and general commodity trade, and lacking of direct investment and joint ventures have provided vast opportunities for further cooperation," Ding added.

Under such circumstance, the two side should promote the cooperation in digital economy, technology and high-end manufacturing sectors, and encourage two-way investment, according to Ding.

"China is in a leading position in the digital economy, and the UAE has 98 percent internet penetration, which have set a solid foundation for the two countries to cooperate in exploring new sales modes such as the live-streaming sales, digital currency and 5G development," Ding said.

While seeing the opportunities, some problems should also not be ignored such as the people to people exchange, said Tong Fei, associate professor of Institute of West-Asian and African Studies under Chinese Academy of Social Science.

"Based on our study in the UAE, many UAE citizens don't have a full understanding about China due to the cultural difference and geographical distance," Tong said, adding that, people to people exchanges should be enhanced, such as establishing the mechanism for both academic and think tank exchanges.