Illustration: Chen Xia/GT

The Yanbu Aramco Sinopec Refining Company (YASREF), a strategic joint venture between Saudi Aramco and China Petrochemical Corporation (Sinopec), operates as a full-conversion refinery covering 5.2 million square meters in Yanbu Industrial City, Saudi Arabia. The development of this enterprise exemplifies the strengthened investment cooperation between the two nations and serves as a model for future collaborations.

During a visit by the Chinese Ambassador to Saudi Arabia, Chang Hua, on November 25, YASREF President and CEO Saad H. Binmatlig discussed plans to further expand the company's production capacity. He emphasized that both the Chinese and Saudi Arabian sides have effectively leveraged their respective strengths, fostering a strong and collaborative partnership.

Economic and trade relations between China and the Middle East are built on a solid foundation and have evolved significantly over time. Recently, these economic exchanges and cooperative efforts have strengthened, reflecting a mutual commitment to growth. This interest and effort from both sides foster a dynamic partnership that benefits both sides.

The Middle East has become an increasingly attractive destination for Chinese companies seeking to expand their international footprint, leading to a surge in business delegations exploring opportunities in Saudi Arabia and other regional markets. Around 750 Chinese companies are currently operating in the country, contributing to major construction projects, Khalid Al-Falih, Saudi Arabia's Minister of Investment, said in an interview with the Xinhua News Agency in September.

Meanwhile, companies from Saudi Arabia and other Middle Eastern nations are increasingly prioritizing investments in China, recognizing the potential for collaboration and growth in one of the world's largest economies. For instance, Saudi Aramco became one of the foreign companies with the highest level of investment in China in 2023.

This year, Saudi Aramco has maintained its strong investment momentum in China, having announced multiple investment intentions. The company's investment vision is not limited to the energy and petrochemical sectors. On September 24, Saudi Aramco signed a five-year cooperation framework agreement with China National Building Material Group Co, aiming to collaborate in the fields of advanced materials and industrial development.

Besides Saudi Aramco, Saudi companies like the Saudi Public Investment Fund, SABIC, as well as those in the private sector have made substantial investments in China. 

Saudi companies' investments in China, coupled with their close collaboration with Chinese companies in the petrochemical and broader sectors, have created numerous opportunities for communication and exchange. This has strengthened mutual understanding, enabling more Chinese companies to gain deeper insights into Saudi companies' vision for development in the petrochemical industry and beyond, as well as the advantages and synergies of their cooperation. Such interactions undoubtedly support further investment by Chinese companies in Saudi Arabia.

Currently, protectionism is on the rise in some countries, significantly impacting global industrial and supply chains. 

China remains committed to further opening up its economy and actively encourages foreign companies to deepen their cooperation with the country. Such investments not only strengthen international partnerships but also create mutual benefits - boosting both the investing companies and the economies of their home countries, while fostering win-win cooperation and bilateral investment.

Saudi companies have significantly ramped up their investments in China in recent years, reflecting a strong confidence in China's economy amid increasing uncertainties in global economy and market. China and Saudi Arabia are poised for significant investment cooperation, with promising prospects across various sectors. 

China offers a wide range of investment opportunities, particularly in new energy and advanced technology, which resonate with Saudi companies' ambitions for growth and international expansion. 

Furthermore, as Saudi Arabia actively pursues its vision to diversify its economy, this opens the door for increased Chinese investments in critical areas such as technology, new energy, and infrastructure, fostering mutual economic growth and collaboration.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn