China and member states of the Gulf Cooperation Council are keen to move forward quickly on closing the China-GCC free trade agreement, a senior government official from Bahrain said on Wednesday.

The aim of sealing a deal as soon as possible is to further reinforce their economic and trade ties, said Abdulla Fakhro, minister of industry and commerce, Bahrain.

In addition to enhancing bilateral trade, modern FTAs encompass critical sectors such as services and digital trade. Both sides have acknowledged the substantial value and benefits that such an agreement will contribute to their respective economies, he said.

Fakhro met with Commerce Minister Wang Wentao in Guangzhou, capital of Guangdong province, on Sunday.

China and the GCC nations had held 10 rounds of negotiations between 2005 and 2022 regarding a bilateral FTA. They have reached agreement on the majority of issues concerning trade in goods. Negotiations on trade in services have also been launched, according to information released by China's Ministry of Commerce.

Headquartered in Riyadh, Saudi Arabia, the GCC is a political and economic union of six Arab states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates — that border the Persian Gulf. Some of these are among the world's top fossil fuel exporters.

The trade value between China and GCC countries reached $315.8 billion in 2022. China has also become the GCC's top trading partner and the leading destination for petrochemical product exports within the grouping.

"A free trade agreement can serve as a robust foundation for future agreements, including those related to a wide range of aspects such as bilateral investment agreements and knowledge sharing. It lays the groundwork for the emergence of various other agreements in the future," said Fakhro.

Noting that Bahrain and China are close economic and trade partners, he said the kingdom is willing to deepen its cooperation in jointly developing the Belt and Road Initiative with China.

Thanks to their complementary trade structure, China and Bahrain saw their trade value surge 13.9 percent year-on-year to $1.2 billion in 2022, data from China's General Administration of Customs showed.

China mainly ships construction machinery, new energy buses and passenger cars, vessels, manufacturing equipment, steel, textiles, furniture, computers, smartphones, garments and household appliances to Bahrain.

In addition to petroleum products and natural gas, the Middle Eastern country's exports to China include a variety of goods such as aluminum ingots, chemical products, mechanical appliances and spices.

Over the years, as Bahrain began its diversification journey, China and Bahrain signed numerous agreements, protocols and memorandums of understanding to reinforce their partnership and collaboration across all fields, according to information released by the embassy of Bahrain in China.

As China and Bahrain boost their efforts to enhance their partnership in mutually beneficial sectors like transportation and energy projects, these endeavors are set to expand and deepen economic cooperation, said Nie Pingxiang, a research fellow at the Beijing-based Chinese Academy of International Trade and Economic Cooperation.

Apart from the conventional focus on trade and investment, predominantly concentrated in the energy and natural resource sectors, Nie highlighted that these initiatives will encompass a wider array of fields. This expansion will encompass domains like the green economy, 5G technology, artificial intelligence, big data and aviation.

Terminus Group, a Beijing-headquartered AI services provider, plans to deploy more resources to develop markets in the Middle East, especially in Bahrain, Saudi Arabia, Qatar and the UAE. It had already established a regional branch with more than 300 engineers and sales staff in Dubai in 2020.

Victor Ai, founder and CEO of Terminus Group, said that as many Middle Eastern countries strive to advance in eco-friendly energy, manufacturing and smart city initiatives, his company aims to fully capitalize on its AIoT (artificial intelligence of things) strength to engage in related-projects in these markets and contribute to regional prosperity.

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