A senior Saudi official said on Thursday that his country is weighing the possibility of funding itself party in Chinese yuan, a move which would strengthen economic ties between the countries and give Riyadh more financial flexibility.The potential partnership would also be considered a huge success for China, the biggest consumer of Saudi oil, and would bring China one step closer to turning the yuan into a top international currency.

Saudi Arabia is looking to raise money not only to cover its budget deficit but also to finance investment projects that would inject capital directly into the country’s economy and create more jobs.China has also announced its intention to fund global investment projects as a way to firm up bilateral economic ties.It has already begun economic collaborations with the United Arab Emirates and France.

"One of our main objectives is to diversify the funding basis of Saudi Arabia," Vice Minister of Economy and Planning Mohammed al-Tuwaijri announced at a joint news conference in Jeddah.

"We will do that through access to investors or bodies of liquidity in the markets. China is by far one of the top markets. We will also access other technical markets in terms of unique funding opportunities, private placements, panda bonds and others, he added.”

U.S.-China Ties Strained

Earlier this week U.S. President Donald Trump announced new moves to pressure North Korea by imposing penalties on 10 entities and six individuals, mostly Chinese and Russian nationals, for supporting North Korea, despite a recommitment of Beijing and Moscow to accept United Nations sanctions on North Korea only a few weeks ago.China is now rallying against Trump’s sanctions which have extended beyond the framework of the United Nations, even though the new sanctions haven’t had any real effect yet.China’s Global Times warned that the U.S. should show restraint or it will face retaliation by the Chinese government.