Kuwait and China - Areas of Partnership for Facilitating Sustainable Economic Development

Executive Summary

There is a growing realization among governments of the GCC countries that dependence on the West and hydrocarbons as the source of revenue may not prove reliable in the long run. This has led to these countries adopting the Look East Policy, through which they aim to diversify their economic links and leverage the benefit of cooperation with Asia's rapidly growing economies, especially China. One of the primary reasons for this phenomenon is the growing strength of the Chinese economy. Since 1980, the Chinese economy averaged a growth of around 10% per year. Chinese influence on world economy has steadily increased in the past two decades. The country now accounts for almost 15% of global economic growth, and is perceived as an important global growth driver. The country's massive industrialization process has increased its energy requirements and hence its dependence on the Gulf countries.