Saudi Arabia’s cabinet on Wednesday approved a decision to join the Shanghai Cooperation Organization (SCO), a China-led security bloc, in a sign of its deepening ties with Beijing.

Per the state-owned Saudi Press Agency, the Saudi cabinet approved a memorandum granting the kingdom "dialogue partner status," a first step before being awarded full membership in the SCO.

Formed in 2001 by Russia, China and former Soviet states in central Asia, the SCO is a political and security union that aims to counter Western influence.

The body has since been expanded to include India and Pakistan. Iran also signed documents last year for full membership.

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Sources told Reuters the possibility of Saudi Arabia joining SCO was discussed during Chinese President Xi Jinping’s visit to Saudi Arabia in December. 

Saudi Arabia’s move comes as the kingdom and other Persian Gulf states have grown wary about losing the U.S. as its historical security guarantor and have looked to diversify partners.

Beijing’s growing influence in the region was evident earlier this month when it brokered a deal between Saudi Arabia and Iran to resume diplomatic ties after more than seven years of hostilities.

China has claimed it had no ulterior motives in brokering the peace talks between Saudi Arabia and Iran. A spokesperson from the kingdom’s foreign ministry said after the deal that China "pursues no selfish interest whatsoever in the Middle East."