Beijing has a set of strategic goals, especially in light of the trade war it is waging with the United States of America, leveraging its core components as the world’s second largest economy, seeking to woo more allies and playing broader roles at various levels.
In this context, a report published by the British newspaper “Financial Times” revealed that Chinese local governments “are seeking to court investments from the Middle East and Asia, at a time when they are struggling to raise funds at home, in order to stimulate economic development after the epidemic.” The same report states that:
Chinese government officials held high-level meetings with a number of Gulf government institutions. Other investors from Asian countries, including GIC (a sovereign wealth fund established by the Singapore government in 1981 to manage reserves) have also offered opportunities. These meetings underscore the deepening economic ties between China and the Middle East, a region that has traditionally been a sphere of influence for the United States. The meetings also come as global investors seek liquidity from the Middle East, particularly after last year’s oil boom.
addiction in the middle east
Associate Professor at Cornell University, Allen Carlson, whose work focuses primarily on issues related to Chinese politics, foreign policy and Asian security, says in statements exclusive to “Sky News Arabia Economy”:
The economic relationship has long relied on China’s need for fuel to power its economy. Specifically, it (China) is more dependent on oil from the Middle East than the United States, with more than half of its oil imports coming from the region. However, in recent years, the relationship has expanded beyond trade thanks to increased Chinese investment in various large-scale infrastructure projects. This has somewhat deepened the economic relationship between China and the Middle East.
He adds: “Then, of course, there is the role that China has played recently in the resumption of relations between Saudi Arabia and Iran, and this indicates to many observers a major change in the region and the world. China’s role in it”.
He points out, “However, the Middle East does not provide the commodity markets offered by the United States, and so it is difficult to see the region serving as a general safety valve for China against American sanctions.”
“The region gives a little more space to China, but it does not allow it to take precedence over the economic relations between the United States and China,” concludes the associate professor at Cornell University.
More investments
Returning to the Financial Times report, he quoted a senior official in southern China as saying, “Some government institutions in the Middle East want to increase investment in China…and we need to attract more investors.”
This comes at a time when various Chinese cities have set up funds this year to raise funds to invest in areas identified by Beijing, including semiconductors, biotechnology, new energy, high-tech manufacturing and electronics. infrastructure. The report indicates that many of these cities and local governments are seeking international investment for the first time and have ambitious goals.
chinese foreign policy
Professor of International Relations at Hamilton College, Alain Kafroni, speaks in exclusive statements to “Economy Sky News Arabia” about the evolution of Chinese foreign policy and the extent of Beijing’s presence in the Middle East (which is currently reflected in economic relations).
He notes that “China’s success in mediating the restoration of diplomatic relations between Saudi Arabia and Iran, as well as talks of Syria’s return to the Arab League, point to a major new development in the regional and global balance of power”.
He explains that while the United States remains the main military supplier, China is the main importer of oil from Saudi Arabia as well as Iraq.
At the same time, China is also looking to broker a deal between Ukraine and Russia, perhaps with much less potential but nonetheless a sign of the new era.
Kafrooni thus highlights the opportunities that arise in terms of political and commercial relations, which in turn strengthen China’s economic presence and support its orientations in the region, at a time when Beijing is facing an economic war of on the part of the United States, a war which Kafrooni refers to as “reflecting Washington’s desire to limit China’s economic, political and military rise”, explaining that technological warfare is very complex given the dense networks of supply chains and the large-scale involvement of American and European companies in China. . In the long term, it is unlikely to succeed in preventing the rise of China.
The volume of trade between the two sides in 2022 will be four times what it was 15 years ago. The trade volume between China and Middle Eastern countries reached $507.152 billion in 2022, a year-on-year increase of 27.1 percent. Over the past five years, the trade volume between China and countries in the Middle East region has increased from $262.5 billion to $507.2 billion.
alternatives to the United States
Journalist and writer Nizar Al-Jilidi said in exclusive statements to the “Sky News Arabia Economy” site: “In fact, China’s eyes are open to all points of the world, even in Africa, it is in the process of make its real spring, and in the Middle East it represents a real alternative to the American and European investments that abound and prejudge. greatly in its relations with the countries of the Middle East and the Gulf States.
And he continues: “China is today adopting a new economic position in its relations with the Gulf States and the countries of the Middle East, in particular North Africa. She is also on her true path to Africa.
As a result, he believes that China represents a permanent line of concern for Europe and the United States of America, as it constitutes a “silent volcano that only erupts at the right time (..)” , stressing that China, according to him, is the other party that benefits from relations with the Middle East, as well as many countries living in a state of economic stagnation, in addition to the advantage achieved by the Gulf countries, which “need new markets to enter in order to achieve competition with regular partners.” Thus, Europe and America are trying in various ways to thwart the Chinese project, which is advancing at a calm but steady pace.
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