ABSTRACT

This chapter focuses on the fast-consolidating energy relationship between the People's Republic of China (PRC) and the Kingdom of Saudi Arabia (KSA). China needs the support of Arab countries in the international arena on issues like the 'One China' policy, Tibet and human rights. At the end of the 1970s, came resumption of the Hajj by Chinese Muslims to Makkah, at the beginning of the 1980s came the entry of Chinese goods to the Saudi market, and finally, in the second half of the 1980s, came China's sale of long-range missiles to Riyadh. While Chinese President Jintao Hu was in Riyadh, the Saudis promised to guarantee the supply of crude oil to China at all times as part of a 'gentleman's agreement' between Saudi Aramco and China Petrochemical Corporation. As China's demand for oil continues to rise and with Saudi Arabia seeking to secure stable markets, and also reduce its dependence on the USA.