Your talking points

China and Arab states deepen economic ties across five strategic sectors.
Hainan free trade port opens new avenues for China-Arab business cooperation.
The conference delivered tangible outcomes amid strong business momentum.
China-Arab cooperation holds strategic value beyond trade and investment.
Experience, challenges, and outlook for China-Arab business cooperation.

Want more beyond the points? Click through each point for a deeper dive.

The brief

Haikou Century Bridge (pixabay.com, lvhao121)

The 11th China-Arab Business Conference and 9th Investment Seminar of the China-Arab States Cooperation Forum took place in Haikou, Hainan, from April 27–30, 2025, drawing over 1,000 political and business leaders from China and Arab countries. Co-hosted by China Council for the Promotion of International Trade (CCPIT), the Hainan Provincial Government, the League of Arab States, and the Union of Arab Chambers, the high-level event focused on energy transition, tech innovation, cultural and tourism integration, and financial cooperation, under the theme "Building Five Cooperation Patterns and Accelerating the Construction of a Community with a Shared Future." Activities included seminars, Hainan promotion events, business visits, a signing ceremony, and the release of the Haikou Declaration. Hainan’s selection as host spotlighted its strategic role as a Free Trade Port, offering investor-friendly policies such as zero tariffs, low tax rates, and streamlined customs procedures, positioning the province as a gateway for deeper China-Arab economic integration.

View from Evergreen Park in Haikou (pixabay.com)

Beyond the points

1. China and Arab states deepen economic ties across five strategic sectors.

China has long been the largest trading partner of Arab countries, with bilateral trade surpassing US$400 billion in 2024. In May 2024, Chinese President Xi Jinping proposed that China and Arab countries build cooperation in five areas: innovation, investment and finance, energy, economy and trade, and people-to-people cooperation. This conference promotes cooperation in this direction.

This vision was echoed at the forum by CCPIT President Ren Hongbin, who highlighted the deepening “oil and gas+” cooperation model. In recent years, partnerships have expanded beyond traditional energy to include emerging sectors such as big data, artificial intelligence, and aerospace, demonstrating a shift toward more diversified and technology-driven collaboration.

At the conference, officials of the League of Arab States emphasized the complementary strengths between the two sides—China’s comprehensive manufacturing system and Arab countries’ unique resource advantages. This synergy not only helps Chinese companies tap into new and strategic markets, but also accelerates the industrialization of Arab economies, laying the foundation for sustainable, mutually beneficial growth.

2. Hainan free trade port opens new avenues for China-Arab business cooperation.

2025 is the year of full operation of the Hainan Free Trade Port. Once the border is formally closed, trade and investment between Hainan and the rest of the world will enjoy more freedom and convenience. In 2024, the trade volume of goods between Hainan and Arab League countries exceeded US$3.3 billion, an annual increase of over 30%. Connectivity is also expanding, with direct flights now linking Haikou and Dubai, and Yangpu Port and Abu Dhabi Port establishing sister-port relationships—a sign of deepening logistical and commercial integration.

Entrepreneurs attending the forum told Basilinna that the Hainan Free Trade Port stands out due to its competitive tax regime—including a 15% corporate and personal income tax rate—as well as capital flow liberalization. Additionally, production and processing companies operating in the port enjoy zero tariffs on imported goods, and if products are undergo processing with at least30% value-added, they can enter the Chinese mainland tariff-free.

Official data shows that in recent years, Hainan's foreign investment and foreign trade have grown much faster than the rest of China. While some noted that the province’s economic base remains relatively modest, many Chinese companies are already positioning themselves to capitalize on the Free Trade Port’s emerging opportunities.

3. The conference delivered tangible outcomes amid strong business momentum.

The forum culminated in the release of the Haikou Declaration, which outlined twelve key suggestions to deepen China-Arab cooperation. These included strengthening collaboration across hydrocarbon energy supply chains, advancing joint efforts in clean energy, and enhancing innovation in fields such as aerospace, artificial intelligence, and the digital economy. The declaration also called for new cooperation models integrating financial, industrial, and agricultural enterprises, along with deeper exchanges between Hainan Province and Arab countries.

The conference also organized a signing ceremony, during which the Chinese side, including Hainan CCPIT, local governments, industrial parks, and enterprises, signed MOUs or cooperation agreements with Arab partners. According to a TV report, the total value of the agreement reached US$411 million.

Beyond formal signings, the conference facilitated dynamic business-to-business matchmaking sessions. Many Chinese and Arab companies used the occasion to establish direct connections, reflecting strong enthusiasm on both sides to translate cooperation enthusiasm into actionable business outcomes.

4. China-Arab cooperation holds strategic value beyond trade and investment.

At the conference, a senior Arab representative from Union of Arab Chambers underscored the broader geopolitical context of China-Arab relations, noting that indiscriminate tariffs imposed by the United States have disrupted global trade, and emphasized that Arab countries express solidarity with China. He highlighted a growing desire within the Arab world to diversify economic partnerships, with the private sector eager for deeper, more practical cooperation with Chinese companies.

Viewed through a historical lens, China’s regional partnerships over the past three decades—from ASEAN and the Shanghai Cooperation Organization to Latin America and the Arab League—demonstrate that these relationships are not merely economic in nature. The China-Arab partnership, in particular, is evolving into a broader strategic alignment, grounded in shared interests across diplomacy, development, and multilateral benefits.

5. Experience, challenges, and outlook for China-Arab business cooperation.

At the seminar, a number of companies mentioned their success experiences and challenges of investing in the Arab countries. For example, a Chinese company noted that when investing and building factories in Arab countries, companies must respect the local community culture and share profits and technology. A representative of an Arab company said that the shortage of talent is a key challenge for China-Arab cooperation projects. For example, some AI projects in the Middle East cannot recruit the right talent.

Looking forward, the highly complementary nature of China-Arab economic and trade cooperation, and their mutual need for geopolitical diversification, will provide a solid base for both sides to maintain and enhance cooperation in the future. Among the opportunities and risks in this world of uncertainties, businesses from both sides will find their way to cooperate and prosper.

Talking Points | Rising Opportunities for Business - Key Takeaways from the 11th China-Arab Business Conference