China and the United Arab Emirates strengthen cooperation in new energy sectors, pointing to ‘overcapacity’ false narrative: Chinese experts

The United Arab Emirates-China Business and Investment Forum starts on May 31 in Beijing. Photo: Zhang Weilan/GT

Representatives of participating companies and investors attending the United Arab Emirates (UAE)-China Business and Investment Forum in Beijing on Friday witnessed the strengthening economic and trade ties between the two countries and said China’s booming new energy industry is a boon for the Arab nation .

This event is a vivid example that refutes the Western narrative of “overcapacity”. The hype about “overcapacity” in China flies in the face of common sense and facts, while the development of China’s new energy industry means advanced manufacturing capacity and greatly contributes to moderating global inflation as well as the green transition, say Chinese experts.

Arab countries are actively courting Chinese new energy vehicle (NEV) companies in a collaboration that not only strengthens the necessary transition away from fossil fuel vehicles, but also drives economic growth through technological exchange. “China’s power to help the world go green is enormous,” Ahmed Bin Sulayem, executive chairman and CEO of DMCC, told the Global Times on Friday. DMCC is a Dubai-based trade and enterprise center supported by the local government.

Chinese new energy products are popular in the Middle East market due to their competitive prices and the urgent need for a green transition, Sulayem said.

Characterized by strong complementarity and the inherent need for sound development, there are broad prospects for overall cooperation between China and Arab countries, said Vice Minister of Commerce Ling Ji in opening remarks at the forum on Friday.

The UAE is showing interest in many areas in China arising from new energy, technology, pharmaceuticals, autonomous machinery and critical minerals, said Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, during his opening speech.

China is the UAE’s largest trading partner, Ling said, adding that over the past decades, the two sides have achieved fruitful cooperation in petrochemicals, processing and manufacturing, digital economy, clean energy, trade and logistics.

China’s Minister of Commerce Wang Wentao said on Thursday that China’s strong economic resilience and potential will provide stable conditions for the development of economic and trade cooperation between China and the UAE, and the UAE can share development dividends for China during a meeting with the Minister of State for Commerce Foreign Thani bin Ahmed Al Zeyoudi.

China’s economic advantage in the new energy industry also gained wide recognition at the forum.

Yousif AI Nowais, chairman and managing director of Arab Development Company, told the Global Times on Friday that China is a leader in pursuing sustainable development and is actively engaging in renewable energy projects and accelerated cooperation on electric vehicle (EV) technology is in line with the UAE’s ambitions in the green transition and new energy.

Several investors from Middle Eastern and Central Asian countries, including the United Arab Emirates, have already turned to China for help in the transition to renewable energy sources. They told the Global Times that there are huge deal opportunities in the green energy, mining, mineral processing, electric vehicle and battery manufacturing sectors.

The Global Times has learned from some UAE investors that there is plenty of room in Arab countries to build ancillary facilities in the coming years, including electric vehicle production bases, battery factories and solar power plants. Strengthening cooperation with Chinese companies is expected to help achieve these goals as quickly as possible. According to investors from the United Arab Emirates, without the participation of Chinese companies, the low-emission transfer would be too expensive.

Sino-Arab cooperation is developing in a multidimensional and in-depth direction, especially in deepening exchanges and cooperation in many areas, including financial investment, scientific and technological innovation, high-end manufacturing and future energy infrastructure, Molwa said.

Enterprises from both sides agreed to strengthen cooperation in various sectors. They also agreed that exchange and cooperation in the field of new advanced technologies will become a new driving force for bilateral cooperation, giving new impetus to Sino-Arab cooperation.

Ebraheem Budebs, a representative of an Abu Dhabi-based company specializing in aircraft engine maintenance, told the Global Times that the company is willing to partner with Chinese aerospace companies to bring in more talent from China to achieve win-win results and sharing profits based on long-term relationship with China, he said.

At the forum, some UAE companies also highlighted strengthening cooperation in cutting-edge, emerging and future industries such as the digital economy, artificial intelligence, life sciences and high-end quantum information production.