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Beijing: China, GCC Complete 90% of Free Trade Agreement

The first session of the China and the Gulf Cooperation Council economic trade forum in China last year (GCC General Secretariat website)
The first session of the China and the Gulf Cooperation Council economic trade forum in China last year (GCC General Secretariat website)
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Beijing: China, GCC Complete 90% of Free Trade Agreement

The first session of the China and the Gulf Cooperation Council economic trade forum in China last year (GCC General Secretariat website)
The first session of the China and the Gulf Cooperation Council economic trade forum in China last year (GCC General Secretariat website)

About 90% of the terms of the free trade negotiations between China and the Gulf Cooperation Council (GCC) countries have been completed, announced China’s Ambassador to Saudi Arabia Chen Weiqing.
Weiqing announced that the two parties have achieved significant progress in the recent period. He explained that China is in constant contact with the Arab Gulf states regarding the deal, calling for more "flexibility on both sides."
The first session of the meeting of economic and trade ministers from China and the GCC states was held in Guangzhou in October 2023 after ten rounds of technical negotiations and meetings.
During a meeting with a few journalists in Riyadh, Weiqing pointed out that the free trade negotiations between China and the Gulf states have entered their nineteenth year, making significant progress recently.
He noted that about 90 percent of the problems have been settled, and the remaining ones are few but difficult.
The diplomat stressed that GCC countries are essential partners for Beijing, and signing a free trade agreement will promote trade cooperation between the two sides.
The GCC countries and China are among the largest economies in the world.
The GCC countries' GDP exceeds $2.4 trillion, while the GDP of China exceeds $17.7 trillion, according to figures from the GCC's General Secretariat.
Trade exchange between the GCC countries and China is developing strongly. Beijing is considered the largest trading partner of the Gulf countries.
Statistics show that bilateral trade volume between the Gulf Cooperation Council countries and China exceeded $315 billion in 2022.
Energy and its derivatives, machinery, electrical appliances, and automatic equipment constituted the largest share of the trade exchange.
Gulf countries' energy exports to China exceeded 80%, while their imports of machinery and electrical appliances exceeded 35%.
The Chinese ambassador revealed that Beijing is in contact with the General Secretariat of the Gulf Cooperation Council, aiming to hold a new round of technical negotiations soon.
Chen stressed that the leaders at the Chinese-Gulf summit held in 2022 expressed their intention to accelerate these negotiations, preferring not to go into details about the remaining contentious points.
- Car factory
Furthermore, the Chinese ambassador revealed that discussions are taking place to establish a Chinese car factory in Saudi Arabia, praising the significant development in Chinese car sales in the Saudi market in recent years.
He reported that a delegation from one of the largest Chinese automobile companies discussed the establishment of a factory in the Kingdom with the Saudi Ministry of Investment.
The Chinese delegation will visit the Kingdom before the holy month of Ramadan to discuss the agreement's details.
Weiqing noted that Chinese cars have become more prevalent in Saudi Arabia, adding that in 2019, only one Chinese car brand was on the list of top ten car sales in the Kingdom, while now the list includes six.

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The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
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The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)

Syria faces significant challenges as discussions intensify about the post-Bashar al-Assad era, particularly in securing the necessary revenues for the Syrian interim government to meet the country’s needs and ensure its sustainability. The widespread destruction of the economy and infrastructure poses a dual challenge: rebuilding the nation while stimulating economic activity and ensuring sufficient financial resources for governance.

Currently, the interim government relies heavily on international and regional support during the transitional phase. Donor countries are expected to provide financial and technical assistance to help rebuild institutions and alleviate the suffering of the Syrian people.

However, as the country transitions, external support alone will not suffice. The government must identify sustainable revenue sources, such as managing natural resources, imposing taxes, and encouraging foreign investments.

Opportunities from the Syrian Diaspora

The Syrian diaspora is seen as a significant economic resource, contributing through remittances or involvement in reconstruction projects. However, realizing these opportunities requires the establishment of strong, transparent institutions, effective resource management, and a clear strategic plan to rebuild trust with both local and international communities.

Securing revenues for the interim government is not merely a financial challenge but also a test of its ability to lead Syria toward stability and prosperity.

Securing Economic Resources

Nasser Zuhair, head of the Economic and Diplomatic Affairs Unit at the European Policy Organization, stated that the interim government, currently led by Mohammed al-Bashir, may replicate its revenue-generating models from Idlib. Resources in Idlib were drawn from temporary measures that are insufficient for sustaining a national economy like Syria’s.

In an interview with Asharq Al-Awsat, Zuhair explained that these resources included taxation, fuel trade with Syrian Democratic Forces (SDF)-controlled areas, international aid for displaced persons in Idlib, remittances from the Syrian diaspora, and cross-border trade facilitated by Turkiye.

“The interim government believes that sanctions relief is a matter of months, after which it can begin to establish a sustainable economy. For now, it will rely on the same resources and strategies used in Idlib and other controlled areas,” Zuhair added.

Challenges and Opportunities

Despite the former regime’s reliance on illicit revenues, such as drug trafficking and Captagon production—estimated to account for 25% of government revenues—the interim government has several potential avenues for generating revenue.

International Aid

Zuhair emphasized that cross-border humanitarian aid indirectly supports local economies. “The current government understands that international and regional aid will be substantial in the coming period, particularly for refugee repatriation and infrastructure development,” he noted.

He added that efforts to secure funding from the Brussels Conference, which allocates about $7 billion annually to support Syria, will be critical. Strengthening ties with regional and European countries, such as Saudi Arabia, Kuwait, Germany, and the UK, is also a priority. However, securing such aid depends on establishing a political framework where Hayat Tahrir al-Sham (HTS) does not dominate governance.

He further noted that international and regional support will likely remain a key revenue source for the interim government, including humanitarian and developmental aid from organizations such as the United Nations and the World Bank.

Taxes and Tariffs

Zuhair highlighted taxes and tariffs as essential components of the government’s revenue strategy. This includes taxing local economic activities, customs duties on cross-border trade, and fair taxes on merchants and industrialists in major cities like Damascus and Aleppo.

“The government can also impose income, corporate, and property taxes while improving border management to maximize revenue from customs and tariffs,” he added.

Agriculture and Natural Resources

Syria’s vast and fertile agricultural lands present an opportunity for revenue generation, Zuhair underlined, explaining that taxes on agricultural products could contribute to state income. However, this sector faces logistical challenges and high production costs. By directing the agricultural sector toward self-sufficiency, the government could reduce dependence on imports and create surplus revenue, he remarked.

Additionally, managing natural resources such as oil and gas could provide a significant revenue stream if the government gains control over resource-rich areas like northeastern Syria, the official noted.

Reconstruction

Reconstruction presents another potential revenue source. International companies could be encouraged to invest in rebuilding efforts in exchange for fees or taxes. Public-private partnerships with local and foreign firms in sectors such as infrastructure and housing could also generate significant funds.

Remittances from the Diaspora

Zuhair stressed the importance of remittances from Syrians abroad, estimating that these transfers could reach $2 billion annually by 2025. Encouraging the diaspora to send funds to support family members and rebuild properties will be a key priority for the government.

Domestic Investments

The interim government has shown its ability to attract domestic investments in real estate, industry, commerce, and agriculture, despite international sanctions. According to Zuhair, leveraging Türkiye as an international gateway, the government could expand this model across Syria, taking advantage of the challenging economic conditions left by the previous regime to draw reasonable investments in its first year.

Tourism and Small Businesses

Revitalizing the tourism sector could directly contribute to revenue, he added, noting that restoring historical and cultural sites, once security and stability are achieved, will attract visitors and generate income.

In addition, encouraging small and medium-sized enterprises will help revive the economy and create jobs, Zuhair emphasized, pointing that supporting manufacturing industries could provide a sustainable revenue stream.