WEBVTT - Bruce Einhorn on China, Saudi Arabia (Audio)

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<v Speaker 1>In China and Saudi Arabia have signed a number of agreements,

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<v Speaker 1>including on energy and investments, joining us to take a

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<v Speaker 1>deeper dive here as a Bloomberg Global Business reporter, Bruce Einhorn,

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<v Speaker 1>Thanks so much, Bruce for your time. This has a

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<v Speaker 1>number of dimensions, leading from financial like an oil deal,

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<v Speaker 1>to implications of UH Saudi SIGNO U S relationships. Let's

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<v Speaker 1>start with energy. What do we know about what they did?

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<v Speaker 1>So there are a bunch of deals that they signed,

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<v Speaker 1>and to be clear, these are largely memorandums of understanding.

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<v Speaker 1>These aren't final agreements, so you know, we should look

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<v Speaker 1>at these with a bit of caution. UH. That said,

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<v Speaker 1>they did sign deals related to hydrogen energy, solar power,

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<v Speaker 1>UM hydrogen. For instance, they they signed an m OU

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<v Speaker 1>to set up a hydrogen cracking project. UM hydrogen of

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<v Speaker 1>course has potential to be UH real green fuel going forward,

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<v Speaker 1>and UM relates to you Saudi Arabia's efforts to transition

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<v Speaker 1>away from its UH really strong reliance on on fossil fuels. Okay,

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<v Speaker 1>now there's a real interesting geopolitical angle to all of this.

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<v Speaker 1>Every everything is UH these days, BRUSA, but really the

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<v Speaker 1>dynamic turning of the of Saudia's turning a cold shoulder

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<v Speaker 1>of the US on controlling oil prices and production and

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<v Speaker 1>then meeting with President she and rolling out the red car.

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<v Speaker 1>But if you will, can we take anything away from that? Well,

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<v Speaker 1>there are clearly is UH in attempt by both Beijing

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<v Speaker 1>and Riad to um intensively to developed ties. China is

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<v Speaker 1>the largest trading partner now for Saudi Arabia. The US

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<v Speaker 1>used to be, but the US hasn't relied so much

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<v Speaker 1>on Saudi Arabia for oil of course for for many

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<v Speaker 1>years now thanks to UM fracking in the United States, China,

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<v Speaker 1>UM and so UM. In addition to the economic relationship,

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<v Speaker 1>both China and Saudi Arabia of course not democratic governments,

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<v Speaker 1>so authoritarian leaders who can see some common interests. So

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<v Speaker 1>it does make sense that this is a relationship that

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<v Speaker 1>both sides want to pursue. Yeah, Shaudi Arabia has to

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<v Speaker 1>walk an interesting balance too, because it still needs a

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<v Speaker 1>US for for arms production. But also coming out of

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<v Speaker 1>this it looks as if a China is willing to

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<v Speaker 1>supply some of that as well. UM yes um uh.

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<v Speaker 1>China has already been a major supplier of military drones

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<v Speaker 1>to Saudi Arabia UM and to other countries in the region.

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<v Speaker 1>UH so uh they could be trying to build on that. UM.

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<v Speaker 1>Of course, UH, China's capability as of exporting uh weapons,

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<v Speaker 1>military equipment nothing like the United States. So UM. As

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<v Speaker 1>much as Saudi Arabia would like to perhaps put distance

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<v Speaker 1>between itself and the US U, UM, it still is

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<v Speaker 1>going to need Washington if it does want to be

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<v Speaker 1>able to get all arms at once. Yeah, and the

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<v Speaker 1>two also agreeing Bruce to a strengthen collaboration at the

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<v Speaker 1>u N, the G twenty, the Shanghai Cooperation Organization. Now

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<v Speaker 1>you pointed out at the top a lot of this stuff.

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<v Speaker 1>You know, they can posture and do what they want,

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<v Speaker 1>but there are a lot of dynamics at play here. Yes, yeah, UM,

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<v Speaker 1>but I think you know, we we do need to um.

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<v Speaker 1>Keep in mind that a lot of these deals are

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<v Speaker 1>things that are just um uh tentative deals. They're not

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<v Speaker 1>full fledged deals. But clearly they are sending a message

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<v Speaker 1>from both sides that they do want to develop this

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<v Speaker 1>relationship further. Yeah, all right, Bruce, Hey, thank you so

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<v Speaker 1>much for your time. Really appreciate it very much. Bruce

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<v Speaker 1>iron Horn, Bloomberg Global business reporter,