China in the Middle East

Vol. 1. No. 44. Nov. 5, 2022

From S.R.

Pakistan is extremely important to China both as a gateway to the Middle East and a buffer to India. President Xi made this clear in his summit with Islamabad days after his leadership was affirmed by the communist leadership. The focus of the two countries would be the Pakistani port of Gwadar. Stay tuned.

He said. She said.

"They are good friends, good partners and good brothers."

President Xi announces an upgrade of strategic relations with Pakistan.

Focus

The Chinese-built highway to the Pakistani port city of Gwadar. [Xinhua]

The Pakistani Factor

For decades, Pakistan served as China's gateway to the Gulf. Most Gulf Cooperation Council states wanted little to do with a godless communist power with an incomprehensible language and culture. Muslim Pakistan's role was to persuade Gulf Arabs to work either directly or indirectly with Beijing. And so, China used Islamabad as a funnel for defense and economic cooperation. The two countries also had a common enemy -- India.

That has long changed. Beijing maintains direct access to every one of the six GCC states and has developed strategic ties with most of them. Today, Pakistan has another role -- a hub for China's Belt and Road Initiative and a route to the Middle East.

Beijing and Islamabad have completed high-level talks meant to transform Pakistan into China's strategic hub. The two countries, which established diplomatic relations in the 1960s, agreed to accelerate construction of the Pakistani port of Gwadar as part of the China-Pakistan Economic Corridor. The multi-billion-dollar project is meant to supply Beijing with a deep-sea port that would link China with the Gulf and Middle East.

On Nov. 2, Pakistani Prime Minister Shehbaz Sharif visited China and met President Xi Jinping to expand what they termed their strategic partnership. They agreed to upgrade railroads that begin in Karachi and reach as far west as Balochistan, along the border with Iran.

"They are good friends, good partners and good brothers," Xi said.

The two leaders also oversaw the signing of agreements in trade, investment, law enforcement and security. Over the last year, Pakistan has sought to stop attacks on Chinese laborers. Xi urged his visitor to provide a "reliable and safe environment for Chinese agencies and nationals in Pakistan."

For his part, Sharif presented the strategic partnership as the foundation of Pakistan's foreign policy, with cooperation on both regional and international affairs. In exchange, Beijing, seeking to reciprocate its increasing presence in Pakistan, has helped Islamabad in agriculture, energy and technology. Beijing also played a major role in the Lahore Orange Line, the first metro train service in Pakistan.

In the next step of CPEC, Sharif said, Beijing was expected to advance such fields as agriculture, technology and information in an effort to increase Pakistan’s exports. The prime minister said China has proven its ability to rapidly implement major projects. To facilitate this, the central banks of both countries signed a memorandum of cooperation to establish renminbi clearing arrangements in Pakistan.

"That's what this brotherhood, cooperation and friendship is about," Sharif said.

The current focus of the two countries is Gwadar. Officials said the city, modeled after China's Shenzhen, would be characterized by digital communications, industry and tourism. They said China was building an international airport in Gwadar, scheduled to be launched in 2023.

"China is building an enabling environment for business and economic opportunities in our country," Hassan Daud Butt, a senior advisor at the China Study Center, said. "Therefore, we must prepare ourselves to capture the opportunity."

Xi has been credited with building China's relations with Pakistan. Analysts said Xi views Islamabad as vital in China's rivalry with neighboring India. They said Gwadar would allow China to avoid India in establishing a link to the Gulf and Middle East.

But there has been a downside to the relationship with Islamabad. Pakistan remains just short of being a failed state, with rampant lawlessness and violence. Sharif has been accused of trying to assassinate his predecessor, Imran Khan, removed from office in April.

As a result, China wants Saudi Arabia to become the third strategic partner. Both China and Pakistan have contributed heavily to the Saudi economy in the areas of energy and labor.

"Riyad needs the investment and technical assistance of foreign countries such as China in the oil and gas industries," Mohammed Salami, a researcher at the Pakistan's International Institute for Global Strategic Analysis, said.

Ticker Tape

...China plans to help Saudi Arabia in its ambitious modernization program. Beijing has offered equipment, training and technology for the kingdom's National Industry Strategy, launched in October. The stakes are huge, with Riyad ready to invest $226 billion with Chinese and other contractors. Officials from both countries have reviewed ways Beijing could diversify the Saudi economy away from energy resources. In March 2022, Saudi exports to China reached a record of $6.5 billion, a figure expected to rise when the kingdom increases energy production capacity.

...Beijing has been pressing Iraq to accelerate the pace of trade and economic relations. Chinese leaders hope that the new government in Baghdad would remove the obstacles to major energy tenders. On Nov. 1, Chinese Prime Minister Li Keqiang urged his Iraqi counterpart, Mohammed Shia Al Sudani, to promote a strategic partnership. Li stressed the need to "enhance pragmatic cooperation in various fields." China has maintained a major presence in Iraq's crude oil and natural gas sector while wooing Baghdad with scholarships in such fields as computer science, cyber security and engineering.

...China likes the results of Israel's elections — a win by the right-wing. Beijing is said to see the return of Binyamin Netanyahu as prime minister as a sign that Israel might improve relations with China despite U.S. opposition. Diplomatic sources say Netanyahu's coalition partners, regarded as far right, could alienate Washington and pave the way for Beijing's return to technology and security cooperation. Under the outgoing left-wing government, Israel obeyed U.S. demands to reduce relations with China in infrastructure, security and technology.

...Beijing has been hosting dozens of Middle East companies at its China International Import Expo, which opened on Nov. 4. The expo in Shanghai has drawn companies that seek to break into the Chinese market -- from energy vehicles to food. About a dozen food and beverage firms from Turkey have been exhibiting at the trade show. Industry sources said company representatives will determine the extent to which China plans to open its doors to foreign goods.

...Tunisia is growing comfortable with Chinese acupuncture. A Chinese medical team has been providing free services in traditional medicine, including acupuncture and moxibustion, at the University of Carthage. So far, the team was said to have treated tens of thousands of patients in this North African republic, most of them Tunisians with complaints of extreme pain. Since 1973, China has provided medical services to Tunisia, including obstetrics, gynecology, pediatrics, orthopedics and ophthalmology.