China and the Gulf Cooperation Council (GCC) are closer than ever to finalizing a landmark free trade agreement following Chinese Foreign Minister Wang Yi's recent Middle East tour, with officials signaling readiness to 'take the final decisive step' after two decades of negotiations.
Wang's December 2025 visit to Saudi Arabia, the UAE, and Jordan saw intensified discussions about completing the deal first proposed in 2004. During meetings with GCC Secretary General Jasem Mohamed Albudaiwi, Wang emphasized the agreement's urgency amid global protectionist trends, stating 'conditions are now basically in place' for completion.
From Framework to Finish Line
Since announcing the initial framework 21 years ago, China and the six GCC nations have conducted 11 rounds of negotiations. The deal would cover 97% of goods and address services, investments, and regulatory standards. Bilateral trade has grown sevenfold since 2004, reaching $180 billion in 2020.
'This isn't about tariffs alone,' explained Amer Al-Fakhoury, an international law professor at the American University in the Emirates. 'Aligning six diverse economies with China's market requires creating new frameworks for digital trade, environmental standards, and cross-border investment.'
Strategic Timing
The push comes as China solidifies its position as the GCC's largest trading partner, while Gulf states seek to diversify their economies beyond hydrocarbons. Recent progress includes October 2024 negotiations in Guangzhou where parties resolved key technical disputes.
Analysts suggest the agreement could establish new energy trade mechanisms and facilitate Chinese participation in Gulf infrastructure projects, while giving GCC members improved access to China's consumer markets and green technology sector.
