After more than two decades of negotiations, the Chinese mainland and the Gulf Cooperation Council (GCC) look closer than ever to finalizing a landmark free trade agreement, following the Chinese mainland's top diplomat Wang Yi's recent trip to the Middle East.
Wang Yi wrapped up a three-country tour this month, meeting key leaders in the United Arab Emirates, Saudi Arabia and Jordan. In Riyadh, he told Jasem Mohamed Albudaiwi, Secretary General of the GCC, that "conditions are now basically in place, making it time to take the final decisive step," highlighting the urgent need for open markets amid rising protectionism.
The framework for this agreement was announced in 2004, aiming to lower tariffs, boost services trade and attract investment. Negotiations advanced quickly until 2009, achieving market access on roughly 97 percent of goods, but then stalled for six years. Talks resumed in 2016 and have since held 11 rounds, with the latest in October in Guangzhou reaching consensus on multiple key terms.
Data shows the growing importance of the partnership: bilateral trade rose from $24.7 billion in 2004, when the Chinese mainland was the GCC’s third-largest trading partner, to $180 billion by 2020, making it the bloc’s top partner ahead of the European Union.
"A free trade agreement would reduce barriers and give more predictability for business on both sides," says Amer Al-Fakhoury, professor of international law at the American University in the Emirates. "For the Chinese mainland, the GCC is a vital energy supplier and gateway to new markets. For the Gulf states, the Chinese mainland remains one of the world’s largest markets and engines of growth."
With global trade under pressure, many see this deal as a timely boost for diversification and economic resilience. As delegations prepare for the final negotiating round, both sides aim to wrap up in early 2026. If successful, the pact could reshape trade patterns across Asia and the Middle East, opening fresh opportunities for businesses and investors worldwide.
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Are China, GCC closer to free trade deal after Wang Yi's visit?
cgtn.com
