China’s economic engagement in the Middle East and North Africa (original) (raw)
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Growing Economic Interdependence of China and the Gulf Cooperation Council
China & World Economy, 2008
The six nations of the Gulf Cooperation Council (GCC) have approximately 40 percent of total proven oil reserves as well as 23 percent of the world's gas reserves. Although rising oil revenues have led to greater outward investment flows, there is also a growing need for significant expansion of the domestic energy sector's capacity. Meanwhile, China's sustained economic boom has resulted in China emerging as the world's second largest consumer and importer of oil , with close to 40 percent of its import demand presently sourced from the GCC. This share will grow significantly in the future. Commercial relations between the GCC and China have to date been dominated by energy-related bilateral investment flows and China's oil imports. Although this will continue to be a central feature, trade and investment links in non-energy areas will further broaden and deepen the relationship. China's relationship with the USA in terms of energy is also emerging as a major issue. Rather than being competitors, a mutual dependence on stable and secure supplies from the GCC highlights the need for a cooperative relationship.
Following major economic, societal, and governmental changes in 1978 that resulted in the adoption of a free market economy and a pragmatic approach to foreign policy, China’s presence in the global energy market is continuously growing as it rises to the top in economic power and success. Since these reforms, Sino-Middle East relations have normalized as China continues work closely with the Middle East with the intention of expanding and developing an effective, multilateral business/trade relationship. This paper will discuss specific events within both China and the Middle East, such as the major policies born out of the 1978 Chinese reform and Saddam Hussein’s invasion of Kuwait, and how they helped set the stage for increased and improved relations with the Middle East. It will also discuss in detail China’s relationships with specific, major oil producing countries such as Iran, Kuwait, and Saudi Arabia, as well as the implications and effects of China’s rising economic power and an analysis of the future of China in the global economy. Many people predicted that China would rise to become the second largest economy in the world just under the United States by 2020. Given that it has reached this level as early as 2017, it is highly plausible that China’s economy could surpass that of the U.S. within the next couple of decades if its approach to foreign policy remains consistent. However, the question remaining is whether or not China will be able to maintain its pragmatic, “offend-no-one” approach to its trade relations as its involvement in the global economy deepens, especially when dealing with the unstable political environment of the Middle East.
CHINA'S CHANGING ROLE IN THE MIDDLE EAST Atlantic Council RAFIK HARIRI CENTER FOR THE MIDDLE EAST
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A quiet shift in geopolitics has been taking place, with East Asia and the Middle East drawing closer together. Energy trade explains part of this, as Japan, South Korea, and China are consistently among the largest export markets for Middle Eastern oil and gas. As the global economic center of gravity moves east, economic relations between the two regions are becoming increasingly deep and multifaceted.
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China is in dire need of energy resources to sustain its growth. Inrecent years, China has been turning more to Saudi Arabia and Iran in the MiddleEast as well as Sudan in North Africa as trade partners to secure its energy supplyand fuel its increasing growth. This paper explores China’s energy policy in theMiddle East and North African (MENA) region by studying three cases: Sudanin North Africa, and Saudi Arabia and Iran in the Middle East. Data was obtainedfrom review of relevant literature. It is found out that China’s oil policy is verymuch driven by the Beijing Consensus. China has applied an equity ownershipstrategy to have more control over oil flows as a shield against price fluctuationsand to reduce supply interruption. Civil unrest and conflicts in the MENA regionthreatens to disrupt China’s energy supply channels, which implies that Chinashould work for peace in the MENA region to achieve its sustainable energysupply.
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China’s growing clout and international ambitions are well known. Spurred by major region-wide infrastructure projects and multibillion investments in train, road and port facilities spanning multiple continents, China’s global strategy is attracting increased attention since the formal unveiling of Beijing’s Belt and Road Initiative (BRI) in 2013. The Middle East and North Africa (MENA) is set to occupy an important dimension in China’s international ambitions.
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WANTED – China’s search for Middle Eastern oil
The paper traces back the history of relations between the People’s Republic of China and the Middle East since mid-twentieth century in order to undercover the trends and factors behind Chinese policy towards the region. It aims to present and analyze the economic and political interests the PRC may have when pursuing its Middle Eastern strategy, principally noticeable in its relations with Saudi Arabia and Iran. The oil dependency is indicated as the main factor in Chinese presence in the region due to the fact that in 1993 the PRC’s oil consumption exceeded domestic production and China was forced to seek its fuel abroad. Consequently, lack of historical involvement in the Middle East, lack of colonial past and pragmatism are perceived as the strongest assets of Chinese foreign policy which allowed to develop and maintain close political and economic ties with the Persian Gulf states. The paper predicts further increase of Chinese engagement with the region, seeing it as geopolitical benefit and possibility to balance the American influence in both regional and global dimensions.