Attendees at the China-Gulf Cooperation Council (GCC) Countries Forum on Industrial and Investment Cooperation said they were working to deepen cooperation with China to bolster trade which last year hit 286 billion U.S. dollars.
With a theme of "Embracing the Future: Advancing High-Quality Industrial and Investment Cooperation between China and GCC Countries," the two-day event opened in Xiamen, east China's Fujian Province, on Thursday.
About 600 representatives from government departments, enterprises, financial institutions and other sectors from China and the GCC countries attended the forum.
Ahmed Sharaf Osilan, managing director at Tanmiah Food Company based in Riyadh, said he hoped that GCC countries will join hands with China in deep cooperation, so as to contribute to growth and prosperity of both economies, as China is emerging as a global powerhouse in tech.
"China is becoming the hub of many technologies, so we look forward to being involved in multiple sectors, not to mention our relationship goes a long way and it helps both of our economies to grow and flourish," he said.
Another attendee, Sameer Abdulla Nass, chairman of the Bahrain Chamber of Commerce and Industry, said he looks forward to seeing the two sides explore bilateral cooperation across a wide range of industries.
"We see there are huge opportunities in developing different investment partnership in AI and also other heavy industries, oil gas developments, logistic developments, tourism developments. All of these factors and sectors of economies are huge potential," he said.
Headquartered in Riyadh, Saudi Arabia, the GCC is a political and economic union of six Arab states - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - that border the Persian Gulf. Some of these are among the world's top fossil fuel exporters.
GCC countries expect deeper cooperation with China
A 25 percent import tariff on all foreign-built vehicles entering the United States has raised serious concerns for manufacturers in South Africa.
Automotive giants like Mercedes and BMW have long used South Africa as a base for global exports -- but those plans may be shifting into reverse gear after the U.S. announced the punitive measures.
"If you take, for example, BMW, 97 percent of the X3 that we are producing in Rosslyn is exported out of the country. We only sell 3 percent in South Africa, and there's a huge number of those vehicles that also go into the U.S. So there are companies in South Africa that are purely here not because they are selling vehicles in South Africa; they are here to produce vehicles for the global market, and it's important for them to remain globally competitive," said Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa.
U.S. automaker Ford, which has deep roots in South Africa, is also in the crosshairs.
The company recently invested over 300 million U.S. dollars to upgrade its Silverton plant in Pretoria, South Africa, for the production of the world's only plug-in hybrid Ranger, which has just entered production but could face delays or restrictions.
"If an American citizen wants to buy specifically a Ford Ranger that is a plug-in hybrid, they can only place an order in South Africa, nowhere else in the world. So, that means, obviously, the capacity of Ford to be able to produce those vehicles in big volumes is going to be constrained, because Americans are going be looking at another Ford that is produced in another country, or even in the United States," said Mabasa.
South Africa has long enjoyed duty-free automotive exports to the U.S. under the African Growth and Opportunity Act, but that relationship now hangs in the balance.
A sharp shift in U.S. foreign policy threatens to derail an industry that employs thousands and contributes around 5 percent to the country's economy.
"We produce less than 1 percent of global automotive vehicles, so to say. So, in reality, the impact on us is likely to be more disproportionate than those of our peers that produce at the same level. And the risk is actually created -- a concentration risk -- in countries that have greater capacity and are building more; in those countries will be able to absorb some of this," said Parks Tau, South Africa's minister of trade and industry.
Amid growing concerns about overreliance on the U.S. market, Amith Singh, national manager for manufacturing at Nedbank Commercial Bank, emphasized the importance of tapping into regional trade opportunities.
"I think we need to make better use of some of our local agreements, our African continental agreements. How do we leverage that? How do we partner with the government and private sector to start benefiting the countries and the economies aside from the United States? So, those could be the catalyst to drive our localization projects; it could be what we need to drive the African economy as opposed to being completely reliant on the States (United States)," he said.
South Africa is for now standing firm in its decision not to retaliate against steep U.S. import tariffs, set to take effect in just a few days.
Officials in Pretoria acknowledge the challenges posed by the current U.S. administration but are pursuing a diplomatic approach in hopes of maintaining stable relations and preserving the African Growth and Opportunity Act.
US tariffs rock South Africa’s auto industry
