BEIJING, July 10 (Reuters) – Beijing’s mayor told the head of Saudi Arabia’s sovereign wealth fund that he hopes the fund will further expand its operations in the Chinese capital, state media reported on Monday.
China’s diplomatic outreach to U.S. ally Saudi Arabia comes amid frustration over what it sees as U.S. weaponizing economic policy and is encouraging expanded ties with countries in Europe, the Middle East and Africa.
China offers many investment opportunities, Yin Yong told Saudi Public Investment Fund Governor Yasir Al-Rumayyan at a meeting on Tuesday, according to the Beijing Daily.
Yun said he hopes the fund will guide two-way investment by companies from the two countries and deepen cooperation in areas such as industrial investment, green development and energy transition.
Al-Rumayyan said he wanted to maintain close communication and exchanges with Beijing to cooperate on sustainable development and renewable energy, the newspaper quoted him as saying.
The Saudi Public Investment Fund, one of the world’s largest sovereign wealth funds, has a wide portfolio of investments ranging from date palm plantations to multinational conglomerates.
Gulf funds are investing rapidly in China at a time when some Western financial institutions are curbing investments there amid concerns over the economic recovery and geopolitical risks.
Reuters reported last month, citing people familiar with the matter, that Qatar’s sovereign wealth fund had agreed to buy a 10% stake in China’s second-largest mutual fund company. China also recently approved its first exchange-traded fund to invest in Saudi Arabian stocks.
While economic cooperation between Beijing and Riyadh remains rooted in energy interests, ties in trade, investment and security are growing. China is Saudi Arabia’s largest trading partner.
Saudi Arabia’s ambitious Vision 2030 plan aims to diversify the economy away from fossil fuels and foster a vibrant private sector.
The government of the world’s largest oil exporter hopes its manufacturers will one day produce everything from computer chips to tyres as part of a broader economic transformation. (By Bernard Ohl and Beijing Newsroom reporters; Editing by Miral Fahmy and Clarence Fernandez)
