China in the Middle East
Vol. 1. No. 43. Oct. 29, 2022
From S.R.
After years of wooing, China has signaled that Saudi Arabia is Beijing’s No. 1 partner. That places Iran down the list of China's allies. Simply put, Riyad has become indispensable to China's short- and medium-term energy strategy. Keep reading.
He said. She said.
"I look forward to seeing our relationship tighten through more frequent collaboration and exchanges."
UAE ambassador Ali Obaid sees China as expanding BRI with the emirates.
Focus
The foreign ministers of China and Saudi Arabia address the political committee meeting on Oct. 27. [Xinhua]
China Makes Its Choice in the Gulf
After a decade of effort, Saudi Arabia has become China's favorite in the Gulf.
Beijing now sees Riyad as the key to China's energy future. The Chinese leadership also sees the Saudis as reliable -- able to withstand pressure from the United States.
On Oct. 27, China and Saudi Arabia discussed the future. The foreign ministers of the two allies agreed that relations would go far beyond energy and transform into a strategic alliance on the international stage.
Chinese Foreign Minister Wang Yi and his Saudi counterpart, Prince Faisal Bin Farhan, reviewed events over the last few months. The focus was the decision by OPEC+ to cut crude oil production to prepare for Beijing's increasing demand in 2023. The OPEC decision led to a sharp U.S. backlash against Riyad, accused of working against American interests and in support of Moscow. Voices in Congress vowed to cut off U.S. defense aid to the kingdom.
At the China-Saudi Arabia Joint Committee, Wang expressed appreciation over how Riyad stood up to Washington. Then, the foreign minister said something unprecedented: "China attaches great importance to the development of China-Saudi Arabia relations and puts Saudi Arabia at a priority position in China's overall diplomacy, its diplomacy with the Middle East region in particular."
This statement has been what the Saudis sought for at least 10 years. The Saudi leadership quietly but persistently urged Beijing to decide which ally was more important -- Riyad or its biggest rival Iran.
For a long time, China resisted making the choice, arguing that its relationship with both Riyad and Teheran allowed Beijing to mediate regional stability. As China, and particularly its client state North Korea, helped Iran's nuclear program, that argument failed to persuade any Saudi official.
Over the last two years, the Saudis have made China an integral energy client and partner. Simply put, Riyad, with 17 percent of proven global oil reserves, fostered a dependence that Beijing cannot simply walk away from. The kingdom has become a massive and reliable supplier regardless of market conditions.
"China also appreciates Saudi Arabia's pursuing of an independent energy policy and making active efforts to maintain the stability of the international energy market," Wang said.
Iran has been unable to compete with the Saudis. Teheran, under international sanctions, lacks the production and spare capacity to satisfy China's insatiable thirst for crude oil and natural gas. Even if all sanctions were removed, it would take years if not decades for Iran to come even close to the Gulf Arab kingdom. And Beijing does not have years. It needs energy now.
Wang's message was that China would serve as big brother to Riyad. Wherever Beijing goes, the Saudis would be invited. That means Riyad's voice would be a lot louder in the G-20. China would recruit Saudi Arabia in Beijing's initiatives in the Middle East. It will coordinate and invite the Saudis to join such Chinese-led forums as BRICS and the Shanghai Cooperation Organization. China would help the Saudis become an industrial power
The Chinese card reflects the strategy of Saudi Crown Prince Mohammed Bin Salman, the de facto king. The crown prince views BRICS as a counterweight to the U.S.-led alliances, whether economic or security. Like others in the Gulf, Mohammed Bin Salman regards Beijing as overtaking Washington as the No. 1 economy. Iran is not part of BRICS, which includes Brazil, Russia, India, China and South Africa.
"This kingdom is not the kingdom it was five years ago or 10 years ago," Saudi ambassador to Washington, Princess Reema Bint Bandar, said.
China will not change its warm relations with Iran. But the Saudi leadership expects that Beijing will consult with Riyad on any move that could affect the kingdom's strategic position. The main issue is Iran's nuclear program and its expanding influence in the Middle East, particularly in neighboring Yemen. With the likely resumption of war in Yemen, the Saudis are looking for political and military support that they're not getting from Washington, which dangles the human rights card every time it seeks to pressure the kingdom.
"Saudi Arabia always puts its relations with China at a priority position among its relations with countries around the world, adheres to the one-China principle, firmly opposes interference in China's internal affairs and firmly resists politicizing the human rights issue," the Saudi foreign minister said.
Ticker Tape
...Gulf states are breathing a sigh of relief at the new mandate for Chinese President Xi Jinping. Despite regional rivalries, Iran and Arab states have been pleased by the Communist Party decision to give Xi another five-year term. The United Arab Emirates believes that Xi's remaining at the helm will expand the Belt and Road Initiative. Beijing is the largest trading partner of the UAE, and Abu Dhabi is the biggest non-oil commerce partner of China in the Middle East.
...China is yielding a fine profit from its port in Greece. The Piraeus Port Authority said its Chinese-controlled port has recorded a more than 28 percent increase in revenues in the first three quarters of this year. In all, the authority said, gross profits reached 83.1 million euro, an increase of nearly 50 percent. The results reflected a nearly 90 percent increase in cruise ships -- or more than triple the number of passengers -- at Piraeus, regarded as the most active port in the Mediterranean. China's Cosco Shipping acquired a majority stake in Piraeus in 2016.
...China has offered cooperation and assistance to Iran amid the resurgence of Al Qaida. On Oct. 27, the Chinese Foreign Ministry issued a strong condemnation of an Al Qaida strike at a Shi'ite shrine in Shiraz in which 15 people were killed. Ministry spokeswoman Mao Ning said Beijing supports Iran's fight against terrorism and extremism. Beijing has offered Iran and other Muslim states cooperation in battling insurgency groups.
...China is taking small steps to establish a presence in conflict-torn Lebanon. The Chinese government has been funding culture in that Levant state, particularly the Lebanese National Higher Conservatory of Music. On Oct. 6, the center was hailed as a partnership between Beirut and Beijing. The facility was expected to be completed within 18 months at the cost of $62 million. Lebanese Prime Minister Najib Mikati said bilateral cooperation would expand to solar energy.
...Despite economic and political tensions, China and Israel remain friends at the cultural level. The two countries continue to sponsor events that highlight their history and heritage. On Oct. 25, the China Cultural Center in Tel Aviv hosted an exhibition by Israeli photographer David Ben-Uziel called "Retracing the Long March." The exhibition contains nearly 400 photos shot in 2005 that retrace the 20,000-kilometer trek of the Chinese communists from 1934 to 1936. Officials said the event reflected the resiliency of Chinese-Israeli ties, under pressure by the United States.