Saudi Arabia’s King Salman met with China’s premier on Friday, a day after the two nations signed a memorandum of understanding on investment cooperation valued at $65 billion.
The landmark agreement aims to boost joint efforts in fields including energy, investment, finance, culture and aerospace, part of Saudi Arabia’s drive to develop a growth strategy less dependent on oil.
Beijing meanwhile is rolling out a massive trade and investment initiative across Central Asia and the Middle East called “One Belt, One Road” that sees the desert kingdom as a regional linchpin.
Despite the eye-catching sum noted in the memo, the actual value of such commitments is usually much smaller once projects begin.
Saudi Arabia is China’s biggest supplier of crude oil and the kingdom’s state-owned oil producer, Aramco, is a partner with state-owned China Petroleum & Chemical Corp. The two operate a refinery in Fujian province along with other Chinese projects