China commerce ministry: will work with U.S. to use trade consultation mechanism, resolve issues through equal dialogue

China commerce ministry: will work with U.S. to use trade consultation mechanism, resolve issues through equal dialogue

Beijing, July 2, 2025 — China's Commerce Ministry has been actively pursuing closer trade ties with Saudi Arabia, as reported by Reuters. Commerce Minister Wang Wentao met with Saudi Arabia's visiting investment minister, Khalid Al-Falih, to discuss new energy and capital market collaborations. This meeting comes amid China's broader efforts to strengthen its commercial relationships in the Gulf region.

China is seeking to navigate a two-front trade war with the United States and the European Union, which have imposed tariffs on Chinese goods. The meeting with Saudi Arabia underscores Beijing's strategy to diversify its trade partnerships and mitigate the impact of these tariffs.

The discussion between Wang and Al-Falih focused on aligning Chinese President Xi Jinping's "Belt and Road" initiative with Saudi Crown Prince Mohammed Bin Salman's "Vision 2030" plan. The Saudi initiative aims to reduce the kingdom's dependence on oil. However, negotiations between China and the Gulf Cooperation Council (GCC) have stalled over concerns about cheap Chinese imports potentially hindering Saudi Arabia's industrial ambitions.

Despite the stalled trade deal, China and Saudi Arabia have maintained a robust trade relationship. In 2024, Saudi Arabia exported goods worth $57 billion to China, with over 80% of these exports being oil. Meanwhile, China sold over $50 billion worth of goods to Saudi Arabia, including smartphones, solar panels, and saloon cars [1].

In a separate development, the Chinese Commerce Ministry has also expressed a willingness to work with the U.S. to use the trade consultation mechanism. The ministry aims to resolve trade issues through equal dialogue, indicating a commitment to constructive engagement with the U.S. to address trade concerns.

References:
[1] Reuters. (2025, August 27). China seeks closer trade ties with Saudi Arabia; Gulf trade deal stalls. Retrieved from https://www.reuters.com/world/middle-east/china-seeks-closer-trade-ties-with-saudi-arabia-gulf-trade-deal-stalls-2025-08-27/