Illustration: Chen Xia/GT
Saudi Arabia's energy transition has created new opportunities for China-Saudi Arabia cooperation. In the latest example,
MKS sports it was reported by Reuters on Tuesday that China Energy Engineering signed a 6.98 billion yuan ($972 million) contract to build a solar power plant in Saudi Arabia.
The 2-gigawatt photovoltaic plant will be built by a joint venture between a China Energy Engineering consortium and several Saudi partners - the sovereign fund PIF, ACWA Power and Saudi Aramco Power Co, according to Reuters.
Saudi Arabia's energy transition has been proactive, holistic and inclusive. The country has said it aims to reach net zero emissions by 2060, according to media reports. Despite having rich reserves of oil, Saudi Arabia is embracing solar and wind power. The oil-rich country is pursuing a rapid and huge expansion of its renewable energy capacity.
On a global scale, the past decade has seen unprecedented investment in renewable energy, as well as significant development of new technologies. This is an irreversible trend. It's time for the global economy to think seriously about how best to respond to the energy transition. Against this backdrop, China-Saudi Arabia cooperation can be probably used as a reference point.
Saudi Arabia's energy transition has enriched China-Saudi Arabia cooperation, resulting in mutually beneficial outcomes. The two countries are collaborating to accelerate the energy transition toward renewable sources and update their traditional industries.
Saudi Arabia has for years tried to diversify its energy mix. This has great significance for its economy. The country has been undergoing a transformation, at a time when it is stepping up efforts to reduce oil dependence, diversify income sources and enhance competitiveness.
China has become a world leader in renewable energy. Its advantages can be attributed to multiple factors including technological innovation. China and Saudi Arabia have very broad potential for economic cooperation. The two countries have embarked on several landmark projects in fields related to renewable energy.
The practice has proved that as long as we follow the right path, we will surely reap a rich harvest. We believe bilateral cooperation will bring a positive boost to Saudi Arabia's energy transition, rather than negative and vicious competition.
In the eyes of some Westerners, China's fast-growing new-energy companies are becoming increasingly competitive, and their rise has triggered a sense of crisis among US elites. However, the reality is that the depth and breadth of economic cooperation between China and the world are increasing.
Saudi Aramco is looking to invest in more chemical plants in China this year and next, Bloomberg reported recently. The world's largest crude exporting company is targeting additional facilities that can turn oil into chemicals. Aramco sees demand for goods such as plastics outlasting the growth in consumption for gasoline and diesel amid the energy transition, the report said.
Aramco's investment adds to evidence that China-Saudi Arabia energy cooperation, encompassing various fields, is much richer than some Westerners predicted.
Chinese Commerce Minister Wang Wentao said in July that China is ready to deepen cooperation with Saudi Arabia in infrastructure, energy resources, green development and the digital economy, and he welcomed Saudi companies such as its PIF and Aramco to continue to "take root" in China.
Mutually beneficial cooperation between China and Saudi Arabia underscores the strong vitality and potential of cooperation in the new era of the energy transition. The essence of economic cooperation is mutual benefit, and there are no winners in trade conflicts triggered by protectionist tariffs, or any "decoupling" push.
The author is a reporter with the Global Times. [email protected]
