GRM 2010 GRM 2011

Abstract Details

 
AUTHOR NAME
 
Family Name:
chen
 
First Name:
mo
 
ABSTRACT OF PAPER
 
Title of Paper:
The economic relations between China and GCC in post financial crisis era
 
Paper Proposal Text :
The economic relations between China and GCC in post financial crisis era

The international financial crisis affected GCC economy, lowering oil prices and oil exporting incomes, hitting the construction market and causing the debt crises of Dubai World. China-GCC economic relations suffered from negative impact in terms of trade of goods, trade of service and investment.
In post financial crises era however, it seems that the China-GCC economic relations are recovering and showing optimism for the future. This tendency is driven by the following factors.
1. The Chinese economy will keep growing at a relatively rapid path generating even higher demand of energy supply from the region, while the GCC economy will also benefit from the slow recovery of oil prices, resuming its growth. Combined with rapid demographic growth, it will further expending GCC market size.
2. The Chinese and GCC economic structures are highly complementary, laying solid basis for building economic relations based on mutual benefits and win-win solution. With the progress of economic diversification in GCC and the possible import of LNG by China from the region in a predictable future, business opportunities could only be broadening for both sides.
3. China-GCC strategic partnership is the demonstration of new concept of energy security based on strategic mutual dependency, or in other words, on the mutual guarantee of energy import and export securities.
4. The stronger economic ties between China and GCC countries would also result from the need for mutual support at the political level.
But the China-GCC economic relations are also facing some uncertainties. The economic integration process seems to slow down and to be blocked by the failed effort in creating the single currency. The up-stream sector of oil industries of the major oil producing countries have yet to be open to foreign direct investment. Some unfavorable regulations still exist in the GCC market. The competition in the trade and construction market is increasing and the China-GCC FTA negotiation is encountering difficulties. To a large extend, the future of China-GCC economic relations will depend on how both sides address these challenges.
 
 
 

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