Saudi Arabia To Invest $10 Billion In China; Triggers Speculation About Rift With US

In February 2021, a US intelligence report concluded that Saudi Arabia's Crown Prince Mohammed bin Salman had ordered the assassination of journalist Jamal Kashoggi. The report was one of the factors that rocked the boat for Saudi-US relations, which had been strong despite geopolitical shifts for more than a century.

Amidst speculation about the rift widening, Saudi Arabia has inked pacts to invest as much as $10 billion in China, at an investment summit.

Mega event to mark a major shift

More than 3,500 business leaders, policymakers from 26 countries, and innovators were present at the 10th Arab-China Business Summit, as the two countries sealed 30 deals.

The boost for sectors including real estate, tourism, mining, and healthcare, is part of a major shift in the region which also saw China broker a truce between Iran and Saudi Arabia.

Apart from its proximity with China, Saudi Arabia had also been working with Russia to control the global oil output for six years.

But Saudi-Russia ties have also been disrupted over output cuts and Ukraine, since Zelensky was invited to address the Arab League.

Another blow for the US?

Saudi Arabia's proximity to China could be another blow to the US after India chose to defy western pressure in order to buy Russian oil.

Before that, long-time US ally Pakistan had also agreed to be a part of China's ambitious infrastructure push via CPEC, although the Chinese debt trap later left Pakistan in a crisis.