Economic and trade cooperation between China and the UAE has flourished in recent years, with China consistently ranking as the UAE’s largest trade partner. In 2023, the total volume of bilateral trade between the countries reached about $95 billion. Both China and the UAE seek to strengthen their economic relations and increase trade exchange to $200 billion by 2030.
In its report, ‘China Modernization and the Development of China-UAE Relations’, Trends Research and Advisory also reveals that the UAE has maintained its position as the largest market for China’s exports in the Middle East.
In addition to trade, the report highlights the growing cooperation between the two countries in various fields including investment, technology, and culture.
Belt and Road Initiative
Under the ambitious Belt and Road Initiative (BRI), the UAE has emerged as a pivotal player, facilitating the land route that links China to Europe through Central Asia. The initiative includes the implementation of major projects including the model park for cooperation in Chinese-UAE industrial capabilities. Moreover, it involves the second phase of the container terminal at Khalifa Port and the Dubai Photovoltaic Thermal Power Plant.
Economic dynamics
China and the UAE have collaborated on multiple economic ventures including the establishment and management of the first joint investment fund between China and the countries of the Middle East. Moreover, they signed the first agreement that considered the Renminbi, China’s official currency, a recognized currency in the Middle East. China and the UAE also established the first bridge of the digital currency between the central banks of three countries and four regions.
Besides, the Chinese central bank and the Central Bank of the UAE signed an agreement to renew the currency swap between them for five years with a total value of $4.9 billion.
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Technological advancements
The report underscores the remarkable strides both China and the UAE achieved in high-tech collaborations. It highlighted their collaboration in establishing the world’s first artificial intelligence university in Abu Dhabi. Moreover, both nations joined forces to conduct the inaugural phase of an international clinical trial for a Covid-19 vaccine.
Progress in digital economy initiatives, vital health sectors, and space exploration further underscore the depth of technological cooperation between China and the UAE.
Cultural exchange
Facilitating people-to-people connections and cultural exchanges has been a cornerstone of China-UAE relations. The report cites initiatives such as the ‘One Hundred Schools Project,’ which has propelled teaching the Chinese language and culture in the UAE to a global benchmark. Additionally, the awaited launch of the UAE-Chinese Cultural Center promises to enrich bilateral ties and foster cross-cultural understanding.
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