China, Spain Signs Agreements to Strengthen Cooperation on Spanish King’s Visit 

Spain's King Felipe VI and Chinese President Xi Jinping, right, shake hands after a signing ceremony at the Great Hall of the People in Beijing, China, Wednesday, Nov. 12, 2025. (Maxim Shemetov/Pool Photo via AP)
Spain's King Felipe VI and Chinese President Xi Jinping, right, shake hands after a signing ceremony at the Great Hall of the People in Beijing, China, Wednesday, Nov. 12, 2025. (Maxim Shemetov/Pool Photo via AP)
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China, Spain Signs Agreements to Strengthen Cooperation on Spanish King’s Visit 

Spain's King Felipe VI and Chinese President Xi Jinping, right, shake hands after a signing ceremony at the Great Hall of the People in Beijing, China, Wednesday, Nov. 12, 2025. (Maxim Shemetov/Pool Photo via AP)
Spain's King Felipe VI and Chinese President Xi Jinping, right, shake hands after a signing ceremony at the Great Hall of the People in Beijing, China, Wednesday, Nov. 12, 2025. (Maxim Shemetov/Pool Photo via AP)

Spanish King Felipe VI and Chinese President Xi Jinping signed agreements on language exchanges and other areas Wednesday as both sides vowed to strengthen their cooperation.

The monarch's visit comes as Spain, the eurozone’s fourth-largest economy, continues its courtship of China and Chinese investment while the relationship with the United States is strained under President Donald Trump. In April, Spanish Prime Minister Pedro Sanchez, head of the country's government, made his third visit to China in as many years.

Spain is one of the more friendly countries to China relative to others in the European Union in recent years.

Felipe and Queen Letizia were met by Xi and his wife Peng Liyuan in front of Beijing's Great Hall of the People and were greeted with a performance by the military band and a 21-gun salute. This is the first state visit for the Spanish king to China, and he was also accompanied by Spanish Foreign Minister Jose Manuel Albares.

“China stands ready to work hand in hand with Spain to build a comprehensive strategic partnership that is more strategically steady, more dynamic in development, and more influential internationally,” said Xi in his opening remarks, particularly while the international situation is “complex and volatile.”

He said that China would also import more Spanish products, without specifying, according to a readout of the meeting from the official Xinhua news.

Felipe and Xi signed agreements promoting cooperation in language exchanges, economic issues, and exporting aquatic products to China.

Felipe is also scheduled to meet with Chinese Premier Li Qiang and Zhao Leji, chairman of China’s top legislative body.

The monarch’s first stop in China was the city of Chengdu, where alongside Spain’s foreign minister and economy minister, he attended a Spain-China business forum with several Spanish business leaders.

Spain has taken a less adversarial stance toward China and has sought to reposition trade relations with the country, whose exports to Spain are far greater than those of the Iberian nation of 49.4 million people to China, which has a population of more than 1.4 billion.

After meeting with Xi in April, Sanchez said Spain was in favor of “more balanced relations between the European Union and China.” The EU negotiates trade terms on behalf of all 27 member countries.

The last time a Spanish monarch visited China on an official state trip was in 2007. Xi last visited Spain in 2018.

Spain generated more than half of its electricity last year from renewable sources, and needs Chinese critical raw materials, solar panels and green technologies in its transition away from fossil fuels, similar to other EU countries. Xi said both sides could further explore cooperation in renewable energy and artificial intelligence.

Last year, Chinese electric battery company CATL announced a joint venture with automaker Stellantis to build a battery factory in northern Spain. That followed deals between Spain and Chinese companies Envision and Hygreen Energy to build green hydrogen infrastructure in the country.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.