4. Conclusion 14

1  Introduction

1．1  Background

International trade helps countries to get what they cannot do with their own earnings. At present, some of the country's resources and other people's knowledge have become the production base due to low wages or other favorable conditions. With the development of global economic integration, as well as the further development of trade and investment liberalization, especially after its accession to WTO, China’s international trade with Saudi Arabia has made great development. With the continuous development of China's opening up, new global competitive landscape has been formed. Economic cooperation and exchanges between various countries and regions have become increasingly frequent, and their dependence on each other has been gradually strengthened. However, that is an irreversible trend of the world.

Currently, the world economy continues to grow, and China's foreign trade volume with Saudi has been rising year after another. China has become the biggest trading partner of Saudi Arabia. According to data from the Chinese Ministry of Commerce: In 2010, China's total trade with Saudi Arabia amounted to $ 100 billion, an increase of 223% compared to 2005, an average annual increase of 26.4%. Faced with increasingly fierce market competition and unprecedented impact of the international economic downturn, China is making great efforts to encourage enterprises to increase overseas development so as to expand the trade volume. In this context, trade relations between China and Saudi Arabia will become closer.

In the Middle East's largest Arab nation is Saudi Arabia. Northeast the north of the country with Jordan, Iraq, Kuwait, Qatar, bahrain and the united Arab emirates (uae) in east, and the red sea to the west border southeast of Oman. Saudi Arabia has more than 28 million population, its area is about 830000 miles. Saudi Arabia climate belongs to the desert climate (MEP, 2011).

Saudi Arabia belongs to the gulf's largest and most stable economies. It joins the world trade organization in the December 2005; Since joining the world trade organization (WTO), Saudi Arabia's economic status is becoming more and more important in the world. Saudi Arabia's oil reserves ranked first in the world, and the Saudi belongs to the world's leading country for oil production and export. It accounts for more than 90% of world exports of oil, and 75% of government revenue (USDS, 2011). For a long time, Saudi Arabia pursuit of rapid industrial expansion. Saudi Arabia semi-official basic industries corporation (SABIC) is one of the world's leading petrochemical manufacturer, government efforts to promote petrochemical private sector participation. The government also plans to invest in mining and refining industry. In July 2003, Saudi Arabia and the United States signed a framework agreement on trade and investment, and it joined the world trade organization in the December 2005.

According to the national development experience,it is shows that basing on the principle of market economy, the private sector has played a significant role in the process of social and economic development . With the development of the country,the private sector more occupy an important position in national economic development，especially in early stage . Increased steadily in the private sector, however, it emphasizes the "instructional plan" at the same time , the government put it with the "mandatory plan" strategic plan, this is to cater to the need of the government. Economic growth indicators reflect in many areas of development plan, two of the more successful typical is: in 1969, the gross domestic product rose from R156.7 billions to SR871.6 billion, and increase private consumption in 2010. Constant prices (1999) in 1969 from SR27.9 billions to SR418.4 billion, in 2010 the average annual growth rate of 7%.