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Saudi-US-Chinese Alliance Launches Green Energy Investment Company

A field of solar panels at Saudi Arabia’s King Abdulaziz City of Sciences and Technology. (Reuters)
A field of solar panels at Saudi Arabia’s King Abdulaziz City of Sciences and Technology. (Reuters)
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Saudi-US-Chinese Alliance Launches Green Energy Investment Company

A field of solar panels at Saudi Arabia’s King Abdulaziz City of Sciences and Technology. (Reuters)
A field of solar panels at Saudi Arabia’s King Abdulaziz City of Sciences and Technology. (Reuters)

A Saudi-American-Chinese alliance announced the launch of a green energy investment company under the name, Skytower, which will be specialized in transferring the latest short and long energy storage solutions to enable the energy mix in Saudi Arabia.

This alliance came following a visit by a US-Chinese trade delegation to Saudi Arabia on May 29, as part of efforts to launch an international green energy consortium based in Riyadh, consisting of multinational companies, to invest in advanced technologies for sustainable green economy, with the aim to reach zero carbon emissions.

The agreement aims to facilitate the access of the alliance members to the Saudi market, support green energy projects, and reinforce the Kingdom’s plan to reach carbon neutrality.

The coalition includes US and Chinese non-governmental organizations that share economic and environmental goals, and seek to build a new model for a sustainable, low-carbon future.

The delegation stated that its objectives are based on the Saudi Vision 2030 and the Net Zero 2060 programs.

 

Green energy technology

Dr. Eric Fang, CEO of Skytower Zero Carbon industry Park, told Asharq Al-Awsat about green energy opportunities in the Kingdom and their importance to the global economy.

He emphasized that Saudi Arabia enjoyed vast wind and solar resources, with new energy storage technology that is driving the use of renewable energy.

He also pointed to the establishment of a complete supply chain in energy storage, at a time when Saudi Arabia is preparing to lead the world in the use of green energy.

He said he saw Saudi Arabia as a major force in driving the adoption of renewable energy transition towards a greener society, adding that the current ambitious plan to fuel the economy with 50 percent of green energy was evidence of the Kingdom’s commitment to establishing a net-zero society in the future.

Moreover, the addition of hydrogen and ammonia technology to the energy mix would drive energy transmission to a high speed, he remarked.

On the future of investment in zero carbon in Saudi Arabia, the CEO of Skytower said that future, or as Saudi Arabia calls it the zero-carbon society, is worth trillions. The Kingdom will lead the world in industrial transformation, digital transformation, research and development innovation, materials development, all of which are foundations for a zero carbon investment.

 

The future of Chinese companies in Saudi Arabia

On the opportunities available to Chinese companies in the Kingdom, Fang stressed that China’s investments in carbon removal, green manufacturing, green infrastructure development, and integrated renewable energy production that combines solar and wind energy, hydrogen, and ammonia, in addition to green biotechnology... were all excellent opportunities in the Kingdom.

According to Fang, all products that are manufactured in Saudi Arabia can be exported to the Middle East, North Africa, Africa, the United States, China, Asia and the European Union. This promotes the strategy of green industry development, which attracts Chinese enterprises, he underlined.

 

Opportunities for American companies in the Kingdom

The CEO of Skytower enumerated the opportunities available to American companies in Saudi Arabia, in the “technology applications market that covers not only the Kingdom, but also the countries of the Gulf Cooperation Council, Africa and the European Union.”

He explained that the great American engineering and innovation skills were today at the heart of economic development around the world.

He added that Saudi Arabia represents a unique new market for American companies, with the capacity for manufacturing, research and development to help create a regional center for innovation to fuel Vision 2030 and the Net Zero 2060 Goal 2060.

 

Comprehensive global experiences

Fang shed light on the opportunities for Saudi-American-Chinese investment cooperation and the benefits that such alliance would bring to the world in the field of green energy and zero carbon.

He noted that the new consortium would benefit from the strength of innovation in the United States, the Chinese industry and the manufacturing strength of the Saudi market to build a unique comprehensive solution development and planning company, with a holistic approach for the supply chain and the sustainability of renewable energy sources, which in turn will drive an unprecedented healthy green industry development.

In short, Skytower will bring 40 years of Chinese industry growth management and policy experiences, 40 years of technological innovation in the United States that support China’s development experiences, and 40 years of China industrial park policy, government incentives, and management expertise. The alliance will also provide a systematic and integrated approach to the needs of the Saudi industry development, while understanding the requirements for the company to enter the market, the CEO concluded.

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Business

Trump Threatens 100% Tax on European Imports if Countries Impose Tax on Digital Services

US President Donald Trump speaks at a rally to kick off the 16-day Great American State Fair as part of Washington, DC's celebration of the nation's 250th birthday, on the National Mall in Washington, DC, USA, 24 June 2026. (EPA)
US President Donald Trump speaks at a rally to kick off the 16-day Great American State Fair as part of Washington, DC's celebration of the nation's 250th birthday, on the National Mall in Washington, DC, USA, 24 June 2026. (EPA)
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Trump Threatens 100% Tax on European Imports if Countries Impose Tax on Digital Services

US President Donald Trump speaks at a rally to kick off the 16-day Great American State Fair as part of Washington, DC's celebration of the nation's 250th birthday, on the National Mall in Washington, DC, USA, 24 June 2026. (EPA)
US President Donald Trump speaks at a rally to kick off the 16-day Great American State Fair as part of Washington, DC's celebration of the nation's 250th birthday, on the National Mall in Washington, DC, USA, 24 June 2026. (EPA)

President Donald Trump on Friday threatened a 100% tax on imports from any country that imposes a tax on digital services from United States companies.

In a post on social media, Trump took aim at European countries that he said are discussing “imminent” implementation of taxes on American companies.

“Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” Trump wrote.

He added that the new tax would supersede any previously negotiated trade deals. Trump said the penalty would apply to any country that moves forward with such a tax, but he singled out European nations in his post.

Trump has repeatedly pushed against foreign efforts to tax or regulate American tech giants. Last year he threatened new tariffs on any country that moved to do so. A post from last August said that digital taxes and regulation “are all designed to harm, or discriminate against, American Technology.”

Business

US Goods Trade Deficit Hits 14-month High in May as Imports Surge

APM Terminals' facility at the Port of Los Angeles in California. (Reuters)
APM Terminals' facility at the Port of Los Angeles in California. (Reuters)
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US Goods Trade Deficit Hits 14-month High in May as Imports Surge

APM Terminals' facility at the Port of Los Angeles in California. (Reuters)
APM Terminals' facility at the Port of Los Angeles in California. (Reuters)

The US trade deficit in goods swelled to a 14-month high in May as businesses boosted imports, likely to avoid shortages and higher prices related to the Middle East conflict, suggesting trade remained a drag on economic growth in the second quarter.

The sharp deterioration in the goods trade deficit reported by the Commerce Department on Friday also reflected a decline in exports.

Recent business surveys have shown front-loading of orders by firms. Sponsors of the surveys attributed the behavior to the US-led war against Iran, which raised commodity prices, including for oil and fertilizers, and disrupted shipping in the Strait of Hormuz.

But after the United States and Iran last week signed a preliminary peace deal, shipments through the strait have picked up, driving oil prices sharply lower. Even if supply chains returned to normal, economists warned that the trade deficit would likely remain elevated because of an artificial intelligence investment boom that is largely reliant on imports.

"The widening trade deficit is bad news for national income growth, and it suggests that net exports might drag down real GDP growth too," said Carl Weinberg, chief economist at High Frequency Economics. "The AI boom had better generate a corresponding increase in services exports to offset the influx of equipment. If it doesn't, then this AI bubble is a losing proposition for the economy."

The goods trade gap increased 27.4% to $105.8 billion last month, the highest level since March 2025, the Commerce Department's Census Bureau said. Economists polled by Reuters had forecast the deficit at $85.0 billion.

Imports of goods increased $10.9 billion, or 3.6% to $313.4 billion, also a 14-month high. They were driven by a 6.3% surge in imports of automotive vehicles. Imports of consumer goods soared 5.7%. Despite high inflation, mostly stemming from the Iran war, consumer spending has remained strong, thanks to large tax refunds this year and a stock market rally.

BROAD INCREASE IN IMPORTS

Imports of industrial supplies, which include petroleum, increased 4.8%. Capital goods imports rose 0.4%. They surged 41.9% on a year-on-year basis, reflecting the AI spending spree.

Imports of foods, feeds and beverages increased 4.3%, while those of other goods advanced 11.5%. Overall imports have remained high despite tariffs imposed by the Trump administration.

Goods exports dropped $11.8 billion, or 5.4%, to $207.7 billion in May. They were weighed down by a 9.2% plunge in exports of consumer goods. Industrial supplies exports tumbled 7.0%, while those of capital goods dropped 5.0%. Exports of other goods decreased 6.8%. But food, feed and beverage exports increased 3.9%. Automotive vehicle exports rose 0.5%.

"Imports are moving sharply higher and this will subtract from GDP growth this quarter," said Christopher Rupkey, chief economist at FWDBONDS. "The import drag on domestic economic growth is back because factories here cannot make it here no matter how Washington economic officials try to spin it."

Trade had been a drag on gross domestic product for two straight quarters. Growth estimates for the second quarter were converging around a 2.5% annualized rate before the trade data.

The economy grew at a 2.1% annualized rate last quarter after expanding at a 0.5% pace in the October-December quarter.

Business

Gold Gains as Dollar Weakens; Still on Track for Fourth Straight Weekly Loss

British gold bars and sovereign coins on display in a London shop. (Reuters)
British gold bars and sovereign coins on display in a London shop. (Reuters)
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Gold Gains as Dollar Weakens; Still on Track for Fourth Straight Weekly Loss

British gold bars and sovereign coins on display in a London shop. (Reuters)
British gold bars and sovereign coins on display in a London shop. (Reuters)

Gold edged higher on Friday as the dollar weakened and expectations of US interest rate hikes eased slightly following inflation data, though prices were still on track for a fourth consecutive weekly decline. Spot gold was up 0.51% to $4,046.70 per ounce by 9:39 a.m. EDT (1339 GMT).

US gold futures for August delivery rose 0.35% to $4,061.40 per ounce.

The US dollar eased from recent highs after the release of the Fed's preferred inflation gauge on Thursday. The US Personal Consumption Expenditures Price Index surged 4.1% in the 12 months through May, matching economists' forecasts in a Reuters poll. Traders are pricing in about a 60% chance of a US rate hike in September, lower than an earlier expectation of 64%, according to CME Group's FedWatch Tool.

Gold is seeing a modest rebound after coming under selling pressure earlier this week, said Jim Wyckoff, a market analyst at American Gold Exchange. Higher interest rates and tighter monetary policy reduce the appeal of non-yielding bullion, as they tend to boost bond yields and increase returns on interest-bearing assets. Spot gold hit more than a seven-month low earlier this week and prices were down 2.6% for the week.

TD Securities said in a note that, given gold's inverse relationship with both higher oil prices and a stronger US dollar, sustained strength in energy markets could put further downward pressure on the precious metal in the months ahead. Gold started trading at a premium in India this week for the first time in a month and a half, as a price correction lifted buying, while demand stayed subdued in China, the top consumer. Among other precious metals, spot silver rose 0.42% to $58.1109 per ounce.

Platinum gained 0.21% to $1,604.45 and palladium jumped 1.25% to $1,199.25.