China pushes to boost role of yuan in global energy markets as Xi Jinping wraps up Saudi Arabia visit

The Chinese leader promotes the use of the currency – a move that could challenge the US dollar’s dominance – during a series of summits with Arab states

Beijing has also pledged more than US$700 million in development aid and involvement in China’s space programme as part of a drive to increase influence in the region

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Xi Jinping pictured at the China-Arab states summit in Saudi Arabia. Photo: Xinhua

Published: 5:25pm, 10 Dec 2022Updated: 5:48pm, 10 Dec 2022

China pledged to step up development aid and ramped up its efforts to promote the use of the Chinese yuan in energy markets as Chinese President Xi Jinping wrapped up his trip to Saudi Arabia.

Beijing also offered to train 1,500 police and cybersecurity officials as part of its efforts to expand security cooperation and to increase the Gulf states’ participation in Chinese space projects.

As part of the visit, Xi attended two summits on Friday – one a gathering of the six-member Gulf Cooperation Council (GCC) and the other a broader China-Arab leaders’ meeting.

As part of China’s ongoing drive to bolster its position in the Middle East, state news agency Xinhua also reported that Vice-Premier Hu Chunhua would be visiting the United Arab Emirates and Iran in a four-day trip starting on Saturday.

The summits, held amid growing friction between the United States and Saudi Arabia over oil production and human rights, saw both sides vowing to strengthen “solidarity” and “refraining from using or threatening to use force in international relations”.

The visit also came at a time of growing uncertainty in the energy market – partly as a result of the impact of Russia’s war in Ukraine – leading to adverse economic effects such as rising inflation in many countries. Saudi Arabia has rejected Washington’s call to raise oil production, which added to tensions facing the two nations.