Due to the Federal Reserve's aggressive interest rate hikes, the United States is attempting to reap global assets, leading to an increasing de-dollarization process among nations.

Particularly, Middle Eastern oil-producing countries have begun actively cooperating with China to strengthen trade relations, which may represent a rare opportunity for China.

On June 11th, at the China-Arab States Cooperation Forum, Saudi Arabia signed contracts worth over ten billion dollars with Chinese enterprises of various sizes.

It must be said that Saudi Arabia's investment is quite generous.

So, in which industries has Saudi Arabia invested in China?

Among them, $5.6 billion was invested in the new energy vehicle sector.

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Saudi Arabia also understands China well; China's new energy vehicles have already taken a dominant position globally, and investing now undoubtedly adds fuel to the fire for the emerging automotive forces.

However, the key question is, as the world's largest oil exporter, isn't investing in the new energy industry shooting itself in the foot?

Is Saudi Arabia that naive?

In fact, this logic is easy to understand: if you can't stop it, join it.

To address global environmental issues and reduce carbon emissions, countries around the world are closely cooperating.

This trend is unstoppable, so for Saudi Arabia, it's better to lay out a strong strategy to gain the upper hand.

Looking at the European car market, many European countries have lowered emission standards five years ago, and the automotive industry has been continuously reducing the power and energy consumption of cars.

They have also vigorously introduced new energy vehicles, increased subsidies for new energy vehicles, etc.

German luxury brands like BMW and Mercedes-Benz are also increasing their layout in new energy vehicles.

Looking at the North American market, Tesla's sales have surged, and despite expanding production capacity, it still cannot fully meet market demand.

Coupled with President Biden's recent executive order, which requires that by 2030, the market share of pure electric vehicles in the United States should reach 40%.

The Chinese market is even more evident, with many new energy brands such as BYD, Geely, and Changan, accounting for 59% of the global market share of new energy vehicles.

Chinese domestic cars are exported to the Middle East, Europe, America, and Southeast Asian countries.

If Saudi Arabia doesn't seize the opportunity now, in the future, as the world's dependence on oil decreases and oil prices fall, Saudi Arabia will lose a considerable amount of income.

Saudi Arabia's industry is inherently more singular, without the cash cow of oil, how can Saudis continue to enjoy life on oil?

This time, a $10 billion investment is enough to see the urgency of Saudi Arabia.

In addition to investing in new energy vehicles abroad, Saudi Arabia is also manufacturing new energy vehicles.

Last year, Saudi Arabia's PIF company cooperated with Foxconn and BMW to create its own new energy brand Ceer, and also spent $69 million to build a new factory, which is expected to have the first batch of mass-produced cars by 2025. Who is the lucky one invested by Saudi Arabia?

The answer is WM Motor, a new force in car manufacturing.

WM Motor's founder, Ding Lei, once served as the general manager of Shanghai General Motors and founded WM Motor in 2017.

Ding Lei, with a background in the automotive industry, although WM Motor is a new force in car manufacturing, its momentum is not inferior to other new energy brands.

In 2021, the HiPhiX topped the list of luxury electric vehicles over 500,000.

This time, the cooperation with Saudi Arabia shows Ding Lei's sharp investment vision, which has laid the foundation for this cooperation several years ago.

WM Motor has a wide range of products in the automotive field, including passenger cars, commercial vehicles, and new energy vehicles.

They produce and sell various types of cars, from small cars to SUVs and trucks, to meet the needs of different consumers.

As an important participant in China's automotive industry, WM Motor is committed to technological innovation and the development of sustainable transportation solutions.

They actively promote the development of electric vehicles and hybrid vehicles and have achieved certain results in the field of new energy vehicles.

Saudi Arabia's investment in China's new energy industry is of great significance to both countries.

China is one of the world's largest energy consumers and also the world's largest carbon emitter.

In order to achieve the goal of carbon peak, China is actively promoting the development of the new energy industry.

Saudi Arabia is rich in oil, but it also realizes the limitations and environmental impact of traditional energy.

By directing investment to China's new energy industry, Saudi Arabia can find opportunities for sustainable growth in the future energy structure and reduce dependence on traditional energy.

For China, Saudi Arabia's investment can not only provide financial support but also share experience and technology, promoting the development of China's new energy industry.

This cooperation can accelerate innovation and technological progress in China's renewable energy field and provide support for China's economic transformation.

In addition, by jointly investing in new energy projects, the two countries can establish closer economic cooperation, promote trade relations and personnel exchanges.

In general, Saudi Arabia's investment in China's new energy industry is in line with China's sustainable development goals and helps Saudi Arabia find new economic growth opportunities.

This cooperation will bring mutual benefits to both countries and play a positive role in the global energy transformation.