Positive momentum in China-UAE ties serves as model for the region

China and the United Arab Emirates have established a comprehensive strategic partnership since formalizing diplomatic relations in 1984. On President Xi Jinping's state visit to the UAE in July 2018, both countries agreed on a comprehensive strategic alliance. UAE President Sheikh Mohamed bin Zayed Al Nahyan visited China six times since 2009, most recently in May 2024 to launch the 10th China-Arab States Cooperation Forum Ministerial Meeting.

President Mohamed again referred to China as "my second homeland" during his meeting with President Xi, reiterating the UAE's priority for its partnership with China. President Xi said China prioritizes China-UAE cooperation and considers the UAE a key partner in Middle East diplomacy. Recent joint head-of-state diplomacy has brought China-UAE relations to a historic high, sustaining positive momentum and serving as a model for China-Arab relations in the new era.

Development as a priority

China and the UAE, both significant members of the Global South, are committed to putting development first. The United Arab Emirates has long been China's largest export market and second-largest Middle Eastern trading partner. In the first half of 2024, bilateral trade totaled US$50.108 billion. The UAE is a significant player in high-quality China-UAE cooperation under the Belt and Road Initiative. Several cooperation projects, such as the China-UAE Industrial Capacity Cooperation Demonstration Zone and Khalifa Port Container Terminal Two, demonstrate a mutually beneficial partnership.

Chinese firms have expanded into solar, wind, nuclear, and hydrogen energy to facilitate the UAE's energy shift. China State Construction Engineering Corporation has created a 700-megawatt concentrated solar power project; Shanghai Electric has built a 950MW hybrid photovoltaic and concentrated solar power project; and China Machinery Engineering Corporation has built the Al Dhafra PV2 Solar Power Plant.

In terms of financial cooperation, China and the UAE have aggressively deepened ties by promoting bilateral local currency swap and renminbi clearing cooperation, which has helped facilitate bilateral trade and investment while also ensuring financial system stability. On November 28, 2023, China and the UAE extended their bilateral currency swap agreement. This five-year agreement establishes a swap scale of 35 billion yuan (US$4.91 billion).

In cultural exchanges, China and the UAE enjoy vibrant interactions. In 2017, The book "Xi Jinping: The Governance of China" was first released in the Gulf region at the 27th Abu Dhabi International Book Fair in the UAE. This publication not only facilitated mutual learning in governance, but also strengthened the UAE's understanding and recognition of China's system and development path, fostering an open, inclusive, and harmonious China-Arab community for a shared future. Notably, both countries have jointly promoted the UAE's "Hundred School Project," which has introduced Chinese language courses in 171 public schools, progressing toward a goal of 200 schools. Emirati students now have more possibilities to study in China, leading to a growing interest in learning Chinese. President Xi encouraged student representatives from the program to master Chinese, understand China, and contribute to the China-UAE relationship.

Currently, China is systematically promoting the development of a great country through Chinese modernization, which is closely aligned with the UAE Centennial 2071. Beyond traditional collaboration areas, both countries have a solid base in innovation-driven development. The UAE is undergoing economic restructuring and government reform with the goal of diversifying its economy by lowering its dependency on oil, growing renewable energy, and implementing a digital economy plan. The UAE launched a Digital Economy Strategy in April 2022, intending to increase the digital economy's proportion of non-oil GDP to 20 percent over the next few years by establishing a Council for Digital Economy. This shift provides substantial opportunities for China and the UAE to jointly pursue modernization approaches that are appropriate for their respective national contexts.

Time-tested relationship

Reflecting on the 40 years of diplomatic relations, the UAE has consistently been an essential partner for China in the Gulf region and a key player in advancing high-quality Belt and Road cooperation. Over the past four decades, the two countries have signed over 130 bilateral agreements and memoranda of understanding, building a solid, time-tested relationship. This connection, rooted in thousands of years of historical ties, has grown even stronger in recent years.

President Xi gave a keynote speech at the 10th Ministerial Conference of the China-Arab States Cooperation Forum in May, quoting an Arab proverb, "Friends are the sunshine in life," to express optimism for China-Arab relations.

China and the UAE are not only strategic allies but also like-minded friends and supportive brothers. Global instability, regional conflicts, and complex dynamics between major countries pose tremendous challenges to peace and development, underscoring the need for comprehensive strategic cooperation between China and the UAE.

Together, the two countries bring stability and positive energy to a volatile planet. The UAE fully supports President Xi's Global Development Initiative, Global Security Initiative, and Global Civilization Initiative and works closely with China on multilateral platforms such as BRICS and the Shanghai Cooperation Organization to promote more just and equitable global governance.

Looking ahead, China and the UAE are dedicated to furthering the China-Arab community of a shared future, expanding cooperation in sustainable development and peace-building, and advocating for a more equitable and prosperous world.

(Chen Yueyang is an associate professor at Shanghai International Studies University, deputy secretary-general of China-Arab Research Center on Reform and Development, and vice dean of School of Asian and African Studies, SISU.)