Defense, China China’s other ventures are in countries that are less wealthy and, as a result, struggle to find investors with the political will to back costly developmental endeavors.China has even shown an interest in investing in Syria. In new executive orders, the Trump administration has taken aim at Chinese companies ByteDance and Tencent -- but the details are yet to be fully outlined. The total value of oil and gas projects awarded to Chinese contractors in the Middle East and North Africa (MENA) region, from stage of announcement to execution, stands at US$75.3bn, of which US$68.1bn relates to projects in execution, according to GlobalData, a … That is inevitably impacting Hong Kong's pandemic response. What could the Chinese investment in the Israeli port of Haifa mean for regional geopolitics in the Middle East? The protest movement is boosted by rare ethnic solidarity as the nation unifies against the coup. Japan's lagging vaccine roll-out draws attention to the barriers in commercializing domestic vaccine production. With projects from Ain Sokhna to Port Said, the Suez Canal Economic Zone has been an investment target for the Chinese. In 2013 China imported more than 3m barrels/day (b/d), according to Chinese customs, compared with US imports of 2m b/d from the Middle East. For example, Chinese e-commerce company JollyChic is now one of Middle East’s most popular platforms with 35 million registered users. Also on rt.com China stealing Middle East from under America’s nose. Power, Crossroads Credit: Andrea Verdelli/Pool Photo via AP, author Mercy Kuo regularly engages subject-matter experts, policy practitioners, and strategic thinkers across the globe for their diverse insights into the U.S. Asia policy. Power, Crossroads Beijing has a stated preference for no violence in Myanmar, but the deadly crackdown on February 28 was not enough to provoke China's condemnation. China’s growing economic interest also coincides with waning U.S. influence in the Middle East. Money, Tokyo Us, Write What happens next? While the world is engaged in an ongoing discussion about the ramifications of the trade war between Washington, DC and Beijing, the economies of the Middle East are shifting away from their longstanding ties with the U.S. toward economically powerful China. READ MORE… Get briefed on the story of the week, and developing stories to watch across the Asia-Pacific. China’s size and economic power have created the conditions for growing influence in the Middle East as part of the Belt and Road Initiative. "The Middle East's economy, unlike U.S.'high-technology and innovation-driven economy, is more akin to China's," said Wu. But in other ways, China is still a relative latecomer to the Middle East and North Africa region. By 2020, China aims to reach a $600 billion trade aggregate with the Middle East. The Middle East has become one of the great chess boards of international politics. Just about every region saw a significant decline in Chinese investment or construction projects except, surprisingly, for one: the Middle East and North Africa (MENA). Asia, Asia In 2016, China became the largest extra-regional source of FDI in the Middle East and since then has only gotten bigger. China in the Middle East: Influence and Investment. Chinese Premier Xi Jinping, right, shakes hands with Egypt President Abdel Fattah El-Sisi before a bilateral meeting of the Second Belt and Road Forum at the Great Hall of the People on Thursday, April 25, 2019 in Beijing, China. image copyrightGetty Images image captionMany Chinese companies have looked to Australia's mining sector for investment opportunities. For example, Chinese developers associated with the Tianjin Economic-Technological Development have invested in a major fiberglass fabrication facility. In 2008 the region got less than 1% of China’s net outbound foreign direct investment (FDI). Chinese VC investment has been excluded from India but is growing in South and Southeast Asia. What’s behind the Indian Army’s reorientation of its Mathura-based 1 Corps toward China? Enjoying this article? Why should U.S. policymakers be concerned about China’s growing influence in the Middle East? As Chinese investment is increasing, Iraq’s security situation is clearly now less of a deterrent to investment, particularly after the government reclaimed areas from the Islamic State in 2017. for Us. Amid the staples of trade and investment, energy, and the BRI, China is exploring a new paradigm of relations with the region. Asia, Pacific September 23, 2012 September 23, 2012 / Arab world, BRICS, East & South East Asia, Trade & Investments / 4 minutes of reading Mona Sukkarieh. How is China expanding its influence in the Middle East? Huawei and other Chinese firms continue to make rapid inroads among Gulf countries – despite the United States’ efforts. Defense, China Dubai’s Jebel Ali port provides a regional headquarters to more than 230 Chinese companies operating throughout the Middle East. © 2021 Diplomat Media Inc. All Rights Reserved. Cambodia's wondrous temples reflect the various stages of the country's history, from colonialism to revolution to the present era of mass tourism. How is that remaking foreign startup ecosystems? Chinese-Egyptian economic cooperation has also supported Egypt’s lagging tourism sector. Of the total $374.4 billion invested in the region during this period, nearly one-third ($120.6 billion) went to Southeast Asia and more than one-quarter ($98.9 billion) poured into Australia. At the same time, China views the GCC as a pivotal cog in its $300bn Belt and Road Initiative to enhance investment and logistic links between Africa and Asia. © 2021 Diplomat Media Inc. All Rights Reserved. Recent events further dim already bleak hopes for a free and fair presidential election in Uzbekistan later this year. President Xi Jinping’s trip to the Middle East in early 2016 was hailed by the Chinese media as a significant step that showed the importance of the region to China. This conversation with Lisa Blaydes, professor of political science and senior fellow at the Freeman Spogli Institute for International Studies at Stanford University, Alexander Vindman, Igor Jablokov, and Ian J. Lynch, Southeast Report, Trans-Pacific Chinese companies are currently mining for lead and zinc in southwest Pakistan and have invested 200 million dollars in upgrades to the Gwadar deep-sea port in Balochistan. The United States potentially has the most to lose. Chinese investment in the Middle East . Chinese investment in Africa Not as easy as it looks Western worries about China’s burgeoning influence in Africa may be overblown Middle East & Africa Nov 21st 2015 edition China is keeping its vaccination campaign homegrown -- despite some reservations from the public. Tracing the recent history and trajectory of China’s presence in the Middle East. ... A final transport infrastructure project to be mentioned and carrying geopolitical implications is a Chinese investment in Chabahar Port in Iran’s southeastern province of Sistan and Baluchestan close to the Pakistan border. How will the February 1, 2021, coup in Myanmar affect the country’s internal security and foreign relations? Democratic artificial intelligence principles are an essential guardrail in the age of great power competition. Chinese investment. View, About Chinese presence in Africa, and particularly in sub-Saharan Africa, is well established and has been among the pillars of its “going abroad” policy for years. The Egyptian government continues to be in conversation with Chinese firms and state-owned enterprises regarding construction contracts for this project. Meanwhile, if Chinese investment further stabilizes Iraqi security, this could further increase Beijing’s desires to sink money into the country. The number of Chinese tourists traveling to Egypt has increased significantly in the last two years, shoring up the tourism sector at a time when the uncertain security situation may have deterred visitors from other countries. Us, Write Middle East Eye reported that Israeli bank Leumi, Germany’s KFW bank group and the European Investment Bank will finance the project, planned to … President el-Sisi has taken the lead in overseeing the construction of Egypt’s new administrative capital which is to be located miles from downtown Cairo and will serve as the country’s seat of bureaucracy. Asia, South China leads investment for Middle East oil and gas projects worth $75bn. This conversation with Lisa Blaydes – professor of political science and senior fellow at the Freeman Spogli Institute for International Studies at Stanford University – is the 205th in “The Trans-Pacific View Insight Series.”. Asia, South Undoubtedly, this will be a boon to some countries. Click here to subscribe for full access. The two sides initiated a disengagement along the banks of Pangong Lake in Eastern Ladakh. What happens next? Chinese involvement in energy projects in the Middle East could help bring the cost of electricity down in places like the UAE. Explain how China is projecting soft power in the Middle East. China has established Confucius Institutes to teach Chinese language and culture in a number of Middle Eastern countries. Indonesia still wants Chinese investments, but Jokowi is also wooing Middle East money Jakarta needs to drum up foreign direct investment to boost … According to the Latham & Watkins report, Chinese executives see Egypt as the third most attractive country for investment in the Middle East, right after Saudi Arabia and the UAE. Asia, Pacific A relatively remote, newly constructed capital city insulates the government from urban populations that have shown a willingness to engage in protest mobilization. From Nepal to India, Thailand to Myanmar, people are taking to the streets – or social media – to demand change. Annual spending on projects that have a Chinese contractor totalled $13.8bn in 2014 and almost doubled to reach $24.9bn in 2018. China’s approach to the Middle East, predicated on a misunderstanding of U.S. strategies, is deeply flawed. And since 2016, Omani students have been sponsored to study abroad in China as part of cooperation associated with development of the Duqm port facility. Asia, Central Just $5 a month. Money, Tokyo Chinese investments in Egyptian infrastructure also have the potential to support the Egyptian regime in a way that insulates the leadership from popular pressure. The ability of governments to leverage rivalry between the U.S. and China may give Middle Eastern incumbents the opportunity to achieve a better outcome for themselves than they would in the context of a single regional hegemon. Beyond energy trade, China’s economic influence across the Middle East has expanded through its investment. Chinese foreign direct investment has been substantial; the American Enterprise Institute’s China Global Investment Tracker shows over $123 billion worth of BRI-related investment into the region since 2013. Chart 2: China-Middle East Bilateral Trade. Asia, Southeast Mercy Kuo is Executive Vice President at Pamir Consulting. Asia, Southeast This may have long-term implications for economic and political dynamics in the region. Southeast Trans-Pacific View author Mercy Kuo regularly engages subject-matter experts, policy practitioners, and strategic thinkers across the globe for their diverse insights into the U.S. Asia policy. At the same time, China has placed economic development, rather than political reform, front and center for its global engagements. Port facilities have been important targets of investment. Struggling with an economic catastrophe, Lebanon is the latest country to be caught up U.S.-China tensions. Also according to the July 2019 agreement, ADNOC and CNOOC would jointly explore LNG sales and purchase opportunities, share knowledge and expertise in LNG markets, and evaluate partnerships and joint investment opportunities in the LNG value chain. ... Chinese investment comes at a time when these states are seeking to reduce … Mushtaq Ahmed’s death has become a rallying point for renewed criticism of a controversial digital security law. How will the February 1, 2021, coup in Myanmar affect the country’s internal security and foreign relations? The Southeast Asian bloc is being asked to prove its diplomatic mettle in a fast-moving and increasingly volatile crisis. Farmers in Pakistani Punjab plan to take to the streets next month, hoping to generate some of the noise that their Indian counterparts have created. Chinese investments are starting to generate job opportunities for locals. Features & Analysis Oil & Gas Project. For less developed countries, China provides a model for growth that is accessible and distinct from the “mainstream” development initiatives being pushed by international financial institutions. For example, China has partnered with Oman on a major facility in Duqm, a town on the Arabian Sea. Asia, Asia Chinese President Xi Jinping's visit to the Middle East does not indicate an imminent new balance of power in the Middle East, but does suggest the prospect of greater Chinese involvement in the region over the long run – a likelihood that Israel and the other Middle Eastern states should take into account. All these factors have pushed Chinese firms to expand across the region, with 22 percent of the companies' global investment flowing directly to the Middle East last year. What’s behind the Indian Army’s reorientation of its Mathura-based 1 Corps toward China? Suez Canal redevelopment was initially launched by President Abdel Fattah el-Sisi in 2014 shortly after he came to power and the project has become more formally integrated with the BRI in recent years. New Prime Minister Oyun-Erdene became the first to get his shot, kicking off Mongolia's vaccine campaign. The two sides initiated a disengagement along the banks of Pangong Lake in Eastern Ladakh. How are Middle East countries responding to China’s overtures? Skip ahead a decade and Chinese money is everywhere: ports … DAVOS - Chinese investment in the Middle East can produce a win-win result, said Majid Jafar, chief executive officer (CEO) of Crescent Petroleum. A report prepared by the Military Intelligence Directorate shows that Chinese investment in the Middle East since 2012 grew by 1,700%, totaling $800 billion in civilian and military sectors. For Gulf Cooperation Council countries, Chinese investment comes at a time when these states are seeking to reduce their hydrocarbon dependency and to diversify their economies. The organizations set up to implement the Belt and Road Initiative go beyond the Asian Infrastructure Investment Bank and Silk Road Fund, dedicated to investment in infrastructure projects and businesses respectively, to also include institutions like the University Alliance of the Silk Road, founded with the goal of fostering cross-cultural understanding and academic exchange. In 2018, Peking University hosted its first China-Middle East Youth Dialogue with the goal of enhancing cross-cultural interactions between youth leaders from China and a variety of Middle Eastern countries. View, About for Us. Asia, Central Chinese efforts at power projection in the Middle East come at a time when China is already a leading trade partner for countries across the region. By James Murray 21 Nov 2019. Meanwhile, over the course of a decade, China's trade volume with the Middle East increased almost tenfold, from US$25.5bn in 2004 to US$239bn in 2013. Likewise, Beijing agreed to invest a total of 1.2 billion dollars in Sri Lanka's Hambantota Port and has promised similar investment at Bangladesh's Chittagong Port. Complete rupture and a “cold war” with China is one possibility, while peaceful and mutually beneficial coexistence is another and better option. Chinese investment in the Middle East can produce a win-win result, said Majid Jafar, chief executive officer (CEO) of Crescent Petroleum. Recent Features. From a Chinese perspective, soft power projection takes place through policies outside of the traditional security domain including development assistance and cultural cooperation. China is also the region's largest oil consumer. Other countries, however, have expressed concern about China’s expansionist ambitions. Many Chinese firms have announced partnerships in Southeast Asia, Europe, and even the Middle East. The China-Arab States Expo spotlights the growing economic relationship between China and the Middle East. China and Syria have engaged in discussions regarding Chinese investments in the Syrian energy sector, among other fields. December 16, 2020 China’s Digital Silk Road Grows With 5G in the Middle East By Sophie Zinser. In the wake of the national security law, public trust in the government has reached new lows. Report, Trans-Pacific Chinese investment in Asia and Oceania rose steadily from $5.7 billion in 2005 to $49.4 billion in 2015, before slipping back down to $30.8 billion in 2019. When citizens of Middle Eastern countries are asked in public opinion surveys if they think that China’s growing economy is a good thing for their own country, respondents in less wealthy countries – like Egypt – express a more favorable attitude toward China’s economic rise than respondents from more wealthy countries – like Turkey.