China’s Growing Foothold in the Middle East -The Rise of a New SuperPower

Overcoming the setback of the COVID pandemic, China is well on its way to establishing its foothold as the new superpower. And the most recent of its interest – The Middle East.

After trapping under-developing countries in South Asia and Africa in its debt trap, the dragon is searching for a new ally. An ally with equal resentment with the west and who can support China is becoming the next America, hence Saudi Arabia.

The Glamorous Welcome of President Xi Jinping on the Middle Eastern Soil

Saudi Arabia rolled out the purple carpet when Chinese President Xi Jinping visited Riyadh in December 2022.

Xi Jinping’s journey to Saudi Arabia is his first since 2016, and it is only his third trip abroad since the coronavirus outbreak started. Chinese President Xi Jinping was in Saudi Arabia for a three-day visit that made dozens of agreements for trade, technology, and the economy. 

The timing of Xi’s three-day trip to Saudi Arabia is a bit perplexing. The organization of oil-producing countries’ refusal to boost output and the West’s decision to cap the price of Russian oil may indicate that China, Saudi Arabia, and Russia have aligned anti-Western policies.

Considering the warm welcome of Xi Jinping by Saudi Crown Prince Mohammed bin Salman (MBS) and a number of agreements and summits heralded, the White House urged – China’s efforts to sway world events are “not favorable” to the international system.

According to a US spokesperson, the United States is aware of China’s efforts to increase its global influence. Moreover, the USA is well aware that the Middle East is undoubtedly one of those areas where China wishes to expand its influence.

Beijing’s focus on Riyadh may concern the US and its western allies as China is improving its relations with Middle East countries, which are growing further in weapon and oil supply.

Read Next: How China is Engulfing Poor Nations into its Vicious Debt Trap

The $30 million Deal with the New Superpower

The signing of 35 investment agreements worth $30 million between China and Saudi Arabia has dramatically improved the two nations’ commercial ties. 

Saudi Crown Prince Mohammed bin Salman and Chinese President Xi presided over the signing of the agreements. The first was an alignment plan between the nations’ Vision 2030 and the Belt and Road Initiative.

Moreover, Prince Abdulaziz bin Salman, the energy minister of Saudi Arabia, and He Lifeng, the head of China’s National Development and Reform Commission, signed a memorandum of understanding on hydrogen energy.

Notably, Chinese cooperation in nuclear energy, security, space, and technology was the highlight of all agreements. China is fostering this relationship with Saudi Arabia, in the region that was formerly under American influence.

During the three-day visit to Saudi Arabia, President Xi addresses a speech in the Saudi capital of Riyadh. The leaders and representatives from the six Gulf Cooperation Council nations – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates were present. 

China is one of the biggest oil importers from Saudi Arabia, and the President indicated an unorthodox view during this speech. Mr. Xi specified using the Shanghai Petroleum and Natural Gas Exchange to settle oil and gas contracts in Chinese currency.

Crude oil, typically valued in US dollars, is exported by Saudi Arabia more frequently than any other country. Moves away from the US dollar could weaken the dollar’s position as the world’s reserve currency. However, Saudi Arabia is unlikely to make significant changes because it pegs its currency to the dollar.

China and Saudi Arabia both hailed Mr. Xi’s visit as a historic occasion as the relations that were once limited to oil-based were extended into sales, technology transfers, and infrastructure projects. 

The Pressure on the USA in the MiddleEast

Due to deteriorating relations with the US and other Western countries, China seeks to strengthen ties with Middle Eastern nations during Xi’s visit. The links between China and Saudi Arabia are hurting the USA economically and globally. 

Saudi Arabia has been a loyal ally of the US for a long time. But recently, its connections with China have significantly created pressure on the USA. 

Joe Biden visited Saudi Arabia in the summer to calm skeptical friends and reaffirm American engagement in the Middle East. The President ensures the leaders of Arabs in Riyadh that the United States won’t withdraw and let China, Russia, or Iran fill the void.

But he was unable to persuade the Saudis to increase oil output. Instead, Arab would shortly spearhead a plan to reduce oil production by almost 2 million barrels per day as part of an agreement with Russia. 

Along with Saudi Arabia, the US has strained ties with China. Saudi Arabia and China have also adopted stances about the Ukraine War that differ from those of the West.

Both parties have refrained from backing sanctions against Russia. Riyadh has repeatedly maintained that Moscow is a significant energy-producing partner who needs to be engaged on OPEC issues.

UAE: Growing Influence of the New Superpower

In the United Arab Emirates, relatively youthful and forceful leaders are now in charge of the Gulf. Although these nations still significantly rely on the United States for their needs in terms of national security and the sale of weapons. 

Although the entry of China into the Middle East has raised concerns and competition among western countries, the United Arab Emirates is taking advantage of the competition.

Moreover, Prince Mohammed wants to reduce Saudi Arabia’s reliance on oil exports by diversifying the country’s economy. He wants to develop a new Saudi military industry as part of a bigger plan to increase the kingdom’s independence and economic might. 

Prince is also planning to diversify the country using new technologies and improve internal infrastructure innovatively. China is regarded as a crucial ally in developing the nation’s defenses and infrastructure since it can offer the necessary expertise and technology.

On the other hand, China’s priority is energy, which depends on a steady flow of fossil fuels to function. China has been alert since price fluctuation due to Russia’s invasion of Ukraine this year. As well as a Chinese energy crisis last year resulted in blackouts that shut down companies and towns.

China is therefore acting wisely by trading steady fuel exports for technology, nuclear energy, and space technology with Saudi Arabia. 

Nevertheless, Xi’s trip to Saudi Arabia showed that Saudi Arabia and the other Arab nations have options. And they will keep using their growth strategy for international stakeholders to their advantage.

China to Arrest USA Autonomy over Saudi Arabia?

Saudi Arab officials have already said that they have never supported polarization. Saudi Arabia is only striving for the nation’s interest; their interests are in the West and the east too. 

However, the young lead of Saudi Arabia is searching for an alternative to enhance the nation’s economy without relying on oil exports. And China has a good chance to arrest US autonomy over Arab countries by providing all required help. 

The relationship between Saudi Arabia and the US as it stands right now is fickle. However, China and Saudi Arabia’s strong alliances make it the ideal time for China to seize the chance to replace the United States as Saudi Arabia’s primary trading partner.  

The new relationship will not only weaken the USA’s influence in the region, but it will also hurt the US superpower’s global image.