A covert visit by US Treasury Secretary William Simon to Saudi Arabia in July 1974 radically transformed global energy and financial security. An ensuing deal, under which the Middle East kingdom agreed to finance US government deficits in return for American military aid and equipment, laid the foundation for decades of economic growth and prosperity, and extended the dollar’s linchpin role in international financial markets.
Hong Kong Chief Executive John Lee Ka-chiu’s coming tour of the Middle East could herald a similarly seismic shift in the financial and strategic relationship between China and the Arab nation, and deepen Hong Kong’s role in international finance.
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* First published in The South China Morning Post (16 January 2023)
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By James A. Fok