UPDATED 8:13 PM PT – Wednesday, December 7, 2022
China and Saudi Arabia are looking to deepen their relations by discussing oil trading.
Chinese President Xi Jinping arrived in Saudi Arabia on Wednesday evening for a summit with leaders of Arab states. This meeting posed a foreign policy challenge for the United States.
Xi arrived in Riyadh. There, he was greeted by Saudi Foreign Minister Prince Faisal bin Farhan al Saud and the head of the kingdom’s sovereign-wealth fund Yasir Al-Rumayyan. The last visit Xi paid to the area was four years ago. At that time he gave $23 billion in loans because he wanted Beijing to become the “keeper of peace and stability in the Middle East.”
Reports claim that Russia, Saudi Arabia and potentially China may be advancing a new initiative to trade oil for gold and national currencies instead of the U.S. dollar.
On Thursday, Xi will meet with Saudi Crown Prince Mohammed and his father King Salman to discuss mutual relations before attending a large gathering composed of Gulf and Arab leaders.
This comes amid tensions between Saudi Arabia and the Biden administration due to the Ukraine War, oil price cap and the warming Saudi-Russian ties.