China’s relationship with Saudi Arabia is growing as the country’s Cabinet has agreed to join the Shanghai Cooperation Organization (SCO). The diplomatic move by the kingdom began with a memorandum of understanding in September, and in late March, Saudi Arabia’s cabinet approved the decision to become a dialogue partner. The Cabinet decision followed Saudi Arabia’s resumption of its relationship with Iran in a Chinese-brokered deal.
Riyadh joins SCO of China; Kingdom ends seven-year rift with Iran
China, a member of the BRICS bloc, has been strengthening its relationship with Saudi Arabia recently. Several reports indicate that the Cabinet in Riyadh has approved a decision to join the Shanghai Cooperation Organization (SCO). The SCO is a union of Eurasian states established by China, and is the world’s largest political, economic and military alliance. Members include India, Russia, Pakistan, Kazakhstan, Kyrgyzstan, and Tajikistan, among others. In September 2022, Oilprice.com author Simon Watkins was the first to report that Saudi Arabia initiated a memorandum of understanding to join the SCO.
Amid Saudi Cabinet approval to join the SCO, the country revealed a renewed relationship with Iran and plans to reduce daily oil production. Senior Saudi and Iranian diplomats recently met in China to restore relations between the two countries. Iran reported that it would reopen embassies and consulates, and that the two regions would reactivate trade agreements. However, the director of the US Central Intelligence Agency (CIA), Bill Burns, emphasized in a report published by The Washington Post that the United States is “surprised” by Riyadh’s moves to work with Iran.
On April 6, Saudi and Iranian officials met in Beijing and resumed flights and issuance of citizen visas between the two countries after a seven-year break. Iran is also among the nine dialogue partners, including Turkey and Qatar, as an observing member of the SCO. The US request to become an observer to the SCO was denied in 2005. The SCO is headed by Secretary General Zhang Ming and is headquartered in Beijing. While the relationship between China and Saudi Arabia has deepened, the Kingdom’s bond with Russia has grown stronger over the same period.
Six days ago, Bitcoin.com News reported that Saudi leaders had announced cuts in oil production with members of the Organization of the Petroleum Exporting Countries (OPEC). The Russian Federation also said it would participate in oil production cuts, joining Riyadh, and has been collaborating with Saudi Arabia in this way since December 2016. The following year, Saudi and Russian leaders grew closer when King Salman bin Abdulaziz Al Saud visited them in 2017. The bond between the two nations has also grown stronger since Saudi Crown Prince Mohammad bin Salman arranged a deal release ten prisoners of war in September.
BRICS countries increase political maneuvering
The BRICS countries (Brazil, Russia, India, China and South Africa) have significantly increased the pace of their political maneuvering over the past month. For example, China entered into a bilateral agreement with Brazil to purchase liquefied natural gas (LNG) in their respective national currencies. At the same time, the BRICS block has become the group with the largest gross domestic product (GDP) in the world. India has announced that it will facilitate international trade deals in rupees under the latest foreign trade policy framework enacted on April 1. Russian State Duma Deputy Chairman Alexander Babakov revealed that the BRICS bloc plans to meet and discuss a new reserve currency issued by the BRICS.
When the Shanghai Cooperation Organization (SCO) denied the United States observer status in 2005, Russia and China expressed concern about the US presence in Central Asia. At the time, SCO members believed that the US had not shown sufficient commitment to the organization’s principles and goals to justify granting observer status. Over the past 17 years, the relationship between the United States and China and Russia has deteriorated significantly.
Although China has been trying to form new alliances in Africa, US Vice President Kamala Harris visited Africa last week, according to a New York Times report. The meeting, the NYT reported, “was intended to send a simple message to your governments and people: China is not your friend. America is.” Russia has also been labor with various African nations, and has been He suggested that Africa’s relations with China and Russia could lead to a cold war with the United States.
What do you think will be the implications for the region and the world if Saudi Arabia joins the Shanghai Cooperation Organization as a dialogue partner? Share your thoughts in the comments below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
