Chinese technology companies are expanding their presence in Saudi Arabia, with several deals announced at the LEAP conference in Riyadh this week. Tencent Cloud, a subsidiary of Chinese tech giant Tencent, has secured an operating license to serve clients in government and finance in Saudi Arabia, building on its previous investment of $150 million in the kingdom. ByteDance's enterprise cloud arm, BytePlus, is partnering with Saudi telecom operator Mobily to build its first physical cloud infrastructure in Riyadh. Additionally, Lenovo plans to start mass-producing a laptop in Riyadh by the end of the year. These deals may raise concerns in Washington, as they come after the Trump administration offered advanced chips to Gulf countries on terms aimed at limiting Chinese tech firms' influence. Meanwhile, Elon Musk's xAI has announced plans to build its first data center outside the US in Saudi Arabia, signaling further interest from American Big Tech companies in the region.
The Trump administration has dangled advanced chips to the Gulf, in part on terms aimed at keeping Chinese tech firms out.
| Signal | Value | Weight |
|---|---|---|
| Correction rate | 0.000 | 0.4 |
| Uncertainty density | 0.077 | 0.25 |
| Assertive mismatch rate | 0.000 | 0.35 |