China's inroads in Saudi defense industry

Hi readers,

Saudi Arabia and China kicked off their third bilateral naval drill this week, a move that demonstrates Beijing’s growing role not only as an economic partner, but as a defense one as well for Riyadh. 

After the Israeli strike against Hamas' leadership in Doha last month — carried out despite the presence of a major US air base in Qatar — Saudi Arabia has been paying closer attention to the limits of external security guarantees. While China does not necessarily represent a plausible alternative to the United States as a defense provider, expanding cooperation with Beijing fits into Riyadh's longer-term goal of localizing more than half its defense spending by the end of the decade.

Let’s unpack.

Rosaleen (@roscarroll)

Sign up for the newsletter here. 

Leading this week

Saudi Arabia and China launched the joint naval drill Blue Sword 2025 on Oct. 13 at the King Abdulaziz Naval Base in Jubail, home to the kingdom's Eastern Fleet. The drill, according to the Saudi Defense Ministry, “aims to exchange experiences between the two sides” as well as “enhance the combat readiness of the participants.”

Senior Colonel Jiang Bin, spokesperson for China’s Ministry of National Defense, said on Oct. 10, in the lead-up to the drill, that the exercise “will help promote the exchange of skills and tactics among the participating troops of both sides, and deepen the friendship and cooperation between the two militaries.” 

This week's drill marks the third iteration of the exercise. 

2019 ➡️ The first Blue Sword exercise, focused on counterterrorism and anti-piracy operations, took place in Guangdong province. 

2023 ➡️ The second such drill, in Zhanjiang, introduced special operations training, including maritime boarding and rescue simulations. 

2025 ➡️ This week’s drill includes tactical drones and maritime mine clearance exercises. 

Saudi-Chinese security ties 

In June 2024, Saudi Defense Minister Prince Khalid bin Salman visited Beijing, where he met with top Chinese military officials, including Defense Minister Dong Jun and Central Military Commission Vice Chairman Zhang Youxia. The two sides expressed their willingness to increase defense collaboration, according to a release from China’s defense ministry. 

Defense-related bilateral meetings since then have been at a lower level but nonetheless reflect a steady effort by Saudi Arabia and China to institutionalize their security cooperation. 

In May, Saudi Vice Minister of Interior Abdulaziz bin Mohammed bin Ayyaf and Chinese Vice Minister of Public Security Xu Datong co-chaired the fifth meeting of the Security Committee of the Saudi-Chinese High-Level Joint Committee in Beijing. According to the Saudi Press Agency, Ayyaf said that the meeting reflected a “level of security cooperation between the two friendly countries based on mutual trust.” 

Just last month, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visited China, where he met with senior officials in Beijing and major industrial leaders in Shanghai. While the focus was on expanding industrial cooperation, one overlooked element was the signing of three memoranda of understanding — with AVCO International, Lanshi Superalloy, and BMGK to localize aerospace industries — a development that, while nominally industrial, fits neatly into Saudi Arabia’s longer-term security goals of strengthening local expertise and production capacity in industries that overlap with the defense sector.

Saudi Arabia’s shift 

Saudi Arabia’s growing defense cooperation with China comes as the kingdom reassesses its dependence on Washington for military protection. The reevaluation has likely been intensified by regional turbulence, particularly Israel’s Sept. 9 strike in Doha targeting senior Hamas leaders, conducted despite the presence of the United States' Al-Udeid Air Base in Qatar. For Riyadh, the incident highlighted that hosting US assets does not guarantee a country's deterrence or defense. 

Further evidence of Riyadh’s recalibration is the Strategic Mutual Defense Agreement signed with Pakistan on Sept. 17. The pact declares that “any aggression against either country shall be considered an aggression against both.” 

The pact does not signal a shift away from Washington — in fact, Riyadh wants stronger US guarantees, similar to its agreement with Pakistan — but it adds depth to Saudi Arabia’s security web, particularly given Pakistan’s status as a nuclear power. 

(Saudi Arabia Ministry of Defense)

Defense self-reliance 

Saudi Arabia's arms imports from the United States dwarf those from China. According to the Stockholm International Peace Research Institute (SIPRI), the kingdom imported arms worth roughly $245 million from China between 2010 and 2020, compared to more than $15 billion from the United States over the same period. Between 2018 and 2022 alone, US suppliers accounted for 78% of Saudi arms imports, according to SIPRI.

The Saudis are also looking inward, pursuing self-reliance in defense production in the long term. With the unveiling of Vision 2030 in 2016, they set a target of localizing more than 50% of military equipment spending by 2030.

Achieving that goal requires partners to provide materials, expertise and manufacturing know-how. These are areas in which China can deliver and reportedly already has. In 2021, CNN cited a US intelligence assessment claiming that Saudi Arabia was manufacturing ballistic missiles with Chinese assistance. 

Rosaleen’s take: Saudi Arabia is not replacing the United States as its primary security partner, but China is increasingly part of Riyadh's defense calculus. Israel's airstrike in Qatar served as a reminder that security partnerships with the United States are not ironclad, as the kingdom's drive for diversification and domestic defense capabilities pushes it to explore and embrace additional partners. Together, these two factors give China an opening to embed itself in Saudi planning, providing expertise and industrial support without taking on the role of primary security guarantor.

Photo of the week

People pass by an electronic sign board showing the closing price of the Hang Seng Index, Hong Kong, Oct. 13, 2025. Asian markets slipped after US President Donald Trump reignited his trade war with Beijing by threatening to impose 100 percent tariffs on goods from China. (Peter Parks/AFP via Getty Images)

Deals and visits ✈️

• Syria, China hold consultations on cooperation for railway transport projects
• Morocco’s head of government receives delegation of Chinese officials in Rabat
• China’s Xpeng Motors to begin flying car sales to Middle East in 2027
• Tehran’s mayor visits major Chinese cities
• Kuwait inaugurates Gulf’s first Chinese Cultural Center
• UAE’s Sharjah moves to secure yuan-denominated syndicated loan
• DP World subsidiary Drydocks World opens procurement center in China
• Chinese, US firms vie for $340 million oil facility contract in Kuwait 

What we are reading​​

• How China powers its electric cars and high-speed trains: The New York Times
• Xi directs quashing of Chinese feminists even as he praises advances at women’s conference: The Guardian