Illustration: Liu Xidan/GT

Asia House,MKsport a London-based think tank, has predicted that by 2027, trade between the Gulf countries and China will exceed the region's trade with Western economies, marking a historic shift in global economic dynamics, the Xinhua News Agency reported. The think tank attributes this shift to several key factors, including China's status as the Gulf's largest energy consumer, the Gulf's ongoing efforts to diversify its economy beyond hydrocarbons, and a series of high-profile political and economic engagements, the report added.

China and the Gulf countries have strong economic complementarities, and their bilateral economic cooperation is driven by multiple factors. Notably, the Gulf countries' efforts to diversify their economies play an active role in fostering this cooperation, making it an area worthy of attention.

In recent years, many Gulf countries have made significant strides in diversifying their economies, with the non-oil sector's contribution to GDP steadily increasing. An example of this is Saudi Arabia. According to data from the Gulf Cooperation Council (GCC), the Economic Daily reported earlier this month that Saudi Arabia has seen a 70 percent increase in foreign direct investment (FDI) in sectors such as agriculture, tourism, mining, finance, logistics, and healthcare. As a result, the non-oil sector's share of the country's GDP has risen to 53 percent since the year. 

As Gulf countries continue to diversify their economies, the potential for economic cooperation with China is immense. This collaboration is not only mutually beneficial but also plays a positive role in supporting the sustainable development of the region's economies.

Take the energy sector, for example. While many Gulf countries are rich in oil and natural gas, the global shift toward clean energy is urging them to explore diverse energy solutions. As a world leader in renewable energy technologies - especially in solar, wind, and battery storage - China offers invaluable expertise and investment opportunities. This collaboration helps Gulf countries reduce their reliance on fossil fuels and transition to more sustainable energy sources, enhancing their comprehensive competitiveness in the global energy market.

In infrastructure development, particularly in digital technology, the potential for China-Gulf cooperation is also significant. Joint efforts in traditional and digital infrastructure could accelerate the Gulf's connectivity and innovation in the information technology sector, driving their digital transformation and fostering economic growth.

Moreover, in areas like smart cities, digital finance, and artificial intelligence, Chinese companies bring advanced technologies and expertise. Through such collaboration, the Gulf countries can access practical solutions that support their broader economic transformation.

Ultimately, economic cooperation between China and the Gulf countries holds tremendous promise. The mutually beneficial nature of this collaboration serves as a powerful catalyst, driving the Gulf countries' efforts to strengthen economic ties with China.

It should be noted that trade between the Gulf countries and China, as well as between the Gulf countries and Western economies, should not be viewed as a zero-sum game. The success of one party does not come at the expense of the other. While the Gulf countries strengthen their mutually-beneficial economic cooperation with China, trade with Western economies can continue to expand rapidly. If such growth does not materialize, Western economies should look inward to identify the underlying reasons.

"Asia House has been tracking the Middle East Pivot to Asia since 2017, and it's clear from our research that we are in the midst of a profound shift in the global landscape. These new diplomatic, economic, and commercial relationships are being forged as Western economies become increasingly protectionist," said Michael Lawrence, Chief Executive of Asia House, according to the Xinhua News Agency.

In recent years, some Western nations have increasingly adopted trade protectionist measures. While many of these policies target China, their effects ripple out far beyond, disrupting global supply chains and straining trade relations between Western countries and their global partners. In the end, such protectionism is likely to erode cooperation within these supply chains, ultimately diminishing the economic influence of Western nations in key regions.

The author is a reporter with the Global Times. [email protected]