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Sources for George V magazine explains that a joint statement on the Palestinian issue and an emphasis on strengthening economic cooperation was signed.
Xi will delivered a speech before the China-Arab Cooperation Forum in Beijing on Thursday, in the presence of the leaders of Egypt, the UAE, Bahrain and Tunisia. The talks are likely to focus on rapidly growing trade and investment, and regional security concerns in light of the Israeli war on Gaza .
Sources told George V Magazine that a number of documents will be issued by the Arab-Chinese ministerial meeting, namely the “Beijing Project,” the draft executive program of the Arab-Chinese Cooperation Forum (2024-2026), and the joint statement between China and the Arab countries on the Palestinian issue.
The sources explained that the statement on the Palestinian issue will emphasize the rights of the Palestinian people, the establishment of their state, and the necessity of stopping the war on Gaza.
While the Biden administration supports Israel in the conflict, China agrees with the Arab countries, supporting an immediate ceasefire and recognition of a Palestinian state. “This alliance helps Beijing expand its political influence in countries that until recently viewed China primarily as an economic partner, and gain new allies in its struggle for influence with the United States,” Bloomberg considered .
China and Saudi Arabia considered Xi Jinping’s visit to the Kingdom, in late 2022, a “milestone.” Last year, China continued this approach by brokering a surprise agreement between Riyadh and Iran. This agreement has survived even amid the pressures caused by the Gaza war.
The Saudi Oil Company, Aramco, is in talks to buy a $1.5 billion stake in a Chinese petrochemical company, while the Chinese automaker FAW Group is participating in an effort to manufacture electric cars in Egypt. UBS analysts estimate that China’s growing ties with the Middle East could add more than $400 billion to global energy-related trade by 2030.
“Soft power”
“China is working to develop soft power in the Middle East,” said Shirley Yu, director of the China-Africa Initiative at the London School of Economics.
She indicated, in her statements to “Bloomberg,” that “in addition to trade relations that suit the needs of both sides,” “the relationship extends to mutual political support in the current global institutions led by the United States,” in addition to new institutions such as the BRICS group. Which China participated in establishing. Egypt and the UAE joined it this year.
In explaining the agenda of the meeting scheduled for Thursday in Beijing, during a press conference last Monday, Chinese Deputy Foreign Minister Deng Li pointed to the increase in trade with the Middle East by 10-fold over the past two decades.
Oil is of great importance to Beijing, and China obtains more than a third of its crude oil needs from the six members of the Gulf Cooperation Council, with the largest share coming from Saudi Arabia, and in trade, the UAE has become a greater partner for China.
According to Bloomberg Intelligence, the UAE plays “a major role in the Belt and Road Initiative,” which is Beijing’s global infrastructure engine, and has more than 6,600 Chinese trademarks registered in the country.
Until the end of 2022, the UAE received about $12 billion in direct Chinese investment.
The picture may have changed last year, as Bloomberg indicated that Saudi Arabia has new investments worth $16.8 billion from China in 2023, including in the automotive and semiconductor industries, Arab News reported in April, citing a study conducted by the Bank of China. Emirates NBD.
While China’s economic and diplomatic weight in the region increases, the United States remains the main security partner of the Gulf Arab states.
Sino-American rivalry
Washington is also seeking to conclude a new defense agreement with Saudi Arabia, supposedly part of a broader regional reorganization process in which the Saudis grant diplomatic recognition to Israel.
This project could slow down China’s commercial progress in the Middle East, by raising obstacles in high-tech sectors, and Bloomberg says that there are indications that the United States is pressuring Gulf companies to sever their ties with Beijing in such areas.
G42, the largest artificial intelligence company in the Emirates, recently agreed to withdraw its investments from China and focus on American technology, as it signed an agreement worth $1.5 billion with Microsoft. A $100 billion artificial intelligence fund in Saudi Arabia has indicated its willingness to do the same.
“The Gulf is moving from strategic hedging in technology to strategic alignment with the United States,” said Ahmed Abouda, an associate fellow at the Chatham House think tank in Britain, who also heads China research at the Emirates Policy Center.
However, there will be plenty of other industries where Gulf states would welcome a broader partnership with Beijing, Aboudah said, including renewable energy, electric vehicles and infrastructure investments, which fits into a broader global pattern.
The major Gulf economies exemplify the reluctance among many emerging market countries to get involved in a “cold war” between the United States and China. These countries prefer to keep the doors open and with them the flow of money, from both sides, according to Bloomberg.
Hongda Fan, professor of Middle Eastern studies at Shanghai International Studies University, said that Saudi Arabia “will not put all its eggs in one basket,” considering that “Saudi defense cooperation with the United States will not come at the expense of its relationship with China.”
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