China in the Middle East

Vol. 1. No. 35. Sept. 3, 2022

From S.R.

China has been slowly gaining a larger portion of the Middle East arms market. It is far from the U.S. or even Russian share, but Beijing has succeeded in filling gaps left by sanctions on Moscow and Washington's restrictions on combat platforms.

He said. She said.

"It appears that China is primarily interested in the commercial, and not political, gains that derive from arms exports."

A report by the Usanas Foundation sees Beijing as increasing sales to Middle East militaries.

Focus

Representatives attend the Great Wall-2022 International Forum on Counter-terrorism. [Xinhua]

China Quietly Enters an Arms Gap

Many of the militaries in the Middle East rely on weapons and platforms from Russia. As they watch the Russians falter in Ukraine, some are considering buying military equipment from China.

Analysts see Beijing as expanding its share in the Middle East arms market. Most countries with access to U.S. weapons will not turn to China for hardware. But those militaries with aging Russian or Soviet platforms are considering adding suppliers.

"China sells its weapons to any state that is willing to buy them; they harbor no qualms about what it sells and to whom," a report by India's Usanas Foundation said. "It appears that China is primarily interested in the commercial, and not political, gains that derive from arms exports."

Beijing, the fourth largest weapons exporter as of 2021, maintains several advantages. The first is that Chinese platforms are seen as more technically advanced than many of their Russian counterparts. Another factor is that Western sanctions on Moscow have hurt supply lines, particularly for spare parts to foreign clients.

The war in Ukraine has also raised questions regarding Russian weapons. The Russian army has performed poorly in Ukraine with frequent equipment breakdowns.

Moreover, China can still finance weapons sales. In contrast, Moscow's ability to issue credit has declined sharply this year.

China has been patient in developing its arm business in the Middle East, which peaked in the 1980s. Beijing, under the cover of its Belt and Road Initiative, has been offering regional allies dual-use projects that include training, development and technology transfer.

"The Chinese have worked hard to develop a global market for their weapons, offering customers around the world with competitive prices on both hardware and maintenance costs, plentiful upgrade potential for weapons systems, and relatively effective weapons," Nicholas Heras, a deputy director at the Newlines Institute for Strategy and Policy, told Middle East Eye.

One target has been Egypt, with the largest military in the Arab world and based largely on U.S. platforms. The Chinese Space Agency has been cooperating with its Egyptian counterpart in developing space science for Africa. The project has been led by the Egyptian-Chinese University and reflects Beijing's policy of using Cairo to penetrate the African market. The exception is Algeria, long a major Chinese client.

"We must have graduates in all disciplines of high quality, which allows providing job opportunities for young people in different countries, pointing to the need to focus on the quality of education provided to students and the amount of quality provided to them," university president Ashraf El Shehhi said.

In 2017, Beijing signed a similar partnership deal with Saudi Arabia. King Abdulaziz City of Science and Technology and China Aerospace Science and Technology agreed to produce China's CH-4 unmanned aerial vehicle, compared to the U.S.-origin Predator. Next door, the United Arab Emirates procured China's Wing Loong UAVs for its war in Yemen. From 2016 to 2020, Chinese arms sales to the two Gulf Cooperation Council states increased by up to four-fold.

China has also sold armed UAVs to Egypt, Iraq and Jordan -- all of them unable to buy U.S. platforms such as Predator. That has provided work for such defense contractors, as Aviation Industry Corporation of China, China Electronics Technology Group Corporation, China North Industries Group Corporation, and China South Industries Group Corporation.

Beijing has also been marketing its Y-20 transport aircraft. The aircraft has flown to the Middle East and other regions to deliver China's Covid-19 vaccines, including to Egypt and Syria. The long-range Y-20 was slated to debut at a major exhibition in Europe.

Still, China faces difficulties in improving its military and security hardware. The United States has blocked sales of a line of advanced chips that could hurt Beijing's ability to develop artificial intelligence and facial recognition. On Aug. 31, the Chinese police held the Great Wall-2022 International Forum on Counter-terrorism, which discussed the use of unmanned and smart weaponry with representatives from 30 countries.

"For the time being, China is growing its market share for weapons sales in the Middle East," Heras said. "But to truly break into the high-end weapons market, it will take a war featuring high-end Chinese weapons outperforming competitors."

Ticker Tape

...China plans to establish several universities in the United Arab Emirates. At a ceremony on Sept. 1, Chinese ambassador Zhang Yiming said the universities would mark expanding ties in education and culture with the Gulf Cooperation Council state. China is already operating a school in Dubai, with the largest Chinese community in the Gulf.

...Iran has pledged to expand relations and cooperation with China. On Aug. 29, President Ebrahim Raisi said Teheran's links with Beijing will not be harmed by what he termed the "international environment," a reference to an emerging nuclear deal that would remove sanctions from Iran. Raisi cited Iran's cooperation with the Shanghai Cooperation Organization, which he said connects his country with Asia's economic infrastructure.

...Beijing remains frustrated by the failure to stabilize Libya. China has told the United Nations that the fighting in Tripoli -- in which hundreds have been injured -- has blocked efforts to renew Libya’s crude oil industry. On Aug. 30, China’s envoy to the UN, Dai Bing, told the Security Council that oil marked an essential revenue source for Libya. China has been a major investor in Libya's energy sector.

...Syria has demonstrated its return to the Chinese market. After a decade of civil war, Damascus has participated in the China International Fair for Trade in Services, which opened on Sept. 1 in Beijing. Syria established a pavilion in a section on the Belt and Road Initiative and show-cased cosmetics, olive oil and fabrics. Syrian economic attache Ziad Zeitoun said his country was promoting trade and investment, particularly in reconstruction.

...Beijing has found a new use for its Belt and Road Initiative -- traditional Chinese medicine. A senior Chinese legislator has called for cooperation with BRI members in using traditional Chinese medicine in building bilateral ties and resolving health issues. On Sept. 2, Chen Zhu, vice chairman of the National People's Congress Standing Committee, said Beijing has offered exchanges and cooperation in Chinese medicine for several years.