35 years of China-Saudi energy cooperation: Aramco’s development in China and a new strategic chapter

Against the backdrop of rising global economic uncertainty, Aramco regards China as an “oasis of certainty.” Al Arfaj explained: “China’s continuous improvement of business environment, comprehensive industrial system, and strategic consistency in energy transition have provided multinational companies with stable development prospects, which is the cornerstone of Aramco’s deepening commitment to the Chinese market.”

“As the world’s second-largest economy, China not only boasts the most comprehensive industrial system globally, but also demonstrates remarkable resilience in areas such as energy transition and technological innovation. These strengths offer multinational corporations like Saudi Aramco vast opportunities for growth and collaboration.” Al Arfaj added.

In recent years, the Chinese government has continued to advance market liberalization, gradually eased restrictions on foreign investment in the energy sector and streamlined approval procedures. Under the new 'dual circulation' development pattern, China’s growing demand for high-end chemical feedstocks and low-carbon energy technologies strongly aligns with Aramco’s strategic direction, creating synergies for cooperation.

Aramco plans to convert four million barrels of oil per day into high-value chemicals within the next decade with China being its key investment priority. China is already the world’s largest consumer and producer of petrochemicals, accounting for nearly half of global demand naturally standing at the core of Aramco’s strategic implementation.

China’s advancements in science and technology have been nothing short of remarkable. The country already leads global manufacturing in key sectors, producing approximately 80% of the world’s solar photovoltaic cells and 70% of lithiumion batteries, which provides a solid foundation for cooperation in the field of energy transition.

The expansion agreement for the Yanbu Refinery, signed in April 2025, has become a landmark project that symbolizes the alignment between China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030.

As a strategic joint venture between Aramco (62.5%) and Sinopec, the project involves an investment of over USD 10 billion. The project aims to maximize operational synergies and create additional value through introducing a state-of-the-art petrochemical unit, a large-scale mixed-fed steam cracker with a 1.8 million tons per year capacity, and a 1.5 million tons per year aromatics complex with associated downstream derivatives integrated into the existing Yasref complex. This is expected to enhance Yasref’s ability to meet growing demand for high-quality petrochemical products.

Low-Carbon Transition and Talent Development: A Dual-Engine Strategy for Sustainable Growth

In response to the global energy transition, Aramco has aligned its Circular Carbon Economy strategy with China’s sustainability blueprint, forming a dual-engine model driven by low-carbon innovation and talent development.

In 2022, Aramco established a Nonmetallic Innovation Center in Beijing, focusing on alternatives to traditional high-emission materials. In Suqian, Jiangsu, the center successfully paved the world’s first recycled plastic-modified asphalt road, replacing 20% of traditional asphalt with recycled thermoplastics and 50% of filler with recycled thermoset plastics. This innovation reduced construction costs by 19% and carbon emissions by 36%. 

In November 2024, Aramco unveiled the first three renovated community basketball courts in Beijing. These courts are part of Aramco’s “Shoot for the Future” basketball court revamp project, with the goal of injecting new energy into community basketball in China. The courts are built with innovative and advanced materials, with the flooring made partly from recycled plastic. The project aims to showcase the increasingly important role that advanced materials can play in a circular carbon economy, while helping with Aramco’s objective to support and empower communities and youth through sports.

Additionally, Aramco’s USD 2 billion Sustainability and Industrial Fund has invested in 12 Chinese startups in new energy and advanced materials, supporting commercialization of technologies such as hydrogen production and carbon fiber materials.

On the talent front, the College Degree Program, launched in 1998, has become a flagship program for China-Saudi talent exchange. Each year, outstanding Saudi high school graduates are sponsored to study sciences, engineering and marketing related subjects at top Chinese universities such as Tsinghua University and Zhejiang University.

The program resumed in 2023, with the first cohort of 80 students already enrolled. To enhance training outcomes, Aramco also collaborates with Chinese universities on internship and research programs, establishing a long-term mechanism for talent exchanges and injecting sustained momentum into bilateral cooperation.

From the first crude shipment in 1991 to the integrated refining expansion in 2025, from traditional energy trade to low-carbon technology collaboration, Aramco’s 35-year journey in China is not only a story of market expansion but also a chronicle of evolving cooperation between China and Saudi Arabia based on mutual trust, benefit, and shared growth. 

Under the frameworks of China’s “dual circulation” strategy and Saudi Vision 2030, the partnership is reaching new heights, from optimizing energy resource allocation to co-developing industrial standards, from joint technological innovation to deep cultural and talent integration. This deepening relationship not only contributes to China’s high-quality development but also offers valuable insights for global energy transition and industrial upgrading, demonstrating the power of multilateral cooperation in an uncertain world.