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The Political Economy of the Sino-Middle Eastern Relations

Muhamad S. Olimat
Published online: 9 June 2010 # Journal of Chinese Political Science/Association of Chinese Political Studies 2010

Olimat argues the indications of growing Sino-Middle Eastern relations are numerous, among which are Chinas appointment of a permanent envoy to the Middle East, the establishment of the China-GCC Forum in 2003, its active role in the UN peace missions in the Middle East, and the wide engagement in issues related to the region. Chinese diplomacy is also proving to be proficient in creating a balance between contending interests in the region, and striking a balance between adversaries in the turbulent Middle East. Chinas economic growth is also one of the main factors leading to the Sino-Middle Eastern strategic partnership, and provides an inspiring model of development. In their landmark study on China, Global Energy, and the Middle East, Yetiv and Lu provided an in-depth analysis to Chinas global quest for energy security. They also advised China and the US to carry out joint business involvement in the oil sector, bilateral dialogue over energy policy, and China avoiding a nationalist approach to its energy security, and any posture of building military capabilities in the region 1. Beng and Li examined Chinas over-dependence on Middle Eastern oil and its preoccupation with the stability and security of its energy supply, especially from the Middle Eastern region which currently supplies up to 57%

Yetiv, Steve A., and Chunlong Li. 2007. China, global energy, and the Middle East. The Middle East Journal 61(2): 199218.

of Chinas overall oil usage/imports2. Zha concluded that Chinas heavy reliance on Middle Eastern oil is projected to continue. China is deepening its economic relations with the region, and following a balanced approach toward Middle Eastern conflicts3. Chen identified three options for China in its efforts to secure energy necessary for its economic growth: trade, oil diplomacy, and force. Central Asia is eager to join the Middle East in fueling Asia Pacifics growth, but a solid energy triangle between Asias Pacific, the Middle East and Central Asia would be difficult to form in the coming decades. Central Asias potential maybe great, but it is not another Middle East4. The enduring conflicts between India and Pakistan, the instability of Afghanistan, and the vulnerability of Central Asia to security threats, complicates any regional potential for energy cooperation. In addition, long distance pipelines, which are very costly to construct and to maintain, contribute to the complexity of exploiting Central Asias energy potential. The issue of reliability was also raised by Bubalo and Thirlwell. They highlighted the fact that the Middle East is the only consistent energy source globally. They also maintain that much of the increase in global oil demand in coming years will come from Asia, and specifically from China and India, the bulk of the supply response is likely to come from the Middle East. Some observers approached the complexity of the energy issue in Chinas foreign policy toward the region from a security perspective. Russell maintains that China has developed a body of strategic interests in the Greater Middle East. Grumbine identified three key drivers of Chinas rise: the sheer scale of Chinas population, its rapid urbanization process, and globalization. Accordingly, Chinas demand on oil is associated with the massive urbanization process in which 600700 million Chinese, or 50% of the population, will live in cities.

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Beng, Phar Kim, and Vic Y. W. Li. 2007. Chinas energy dependence on the Middle East: Boon or bane for Asian security? The China and Eurasia Forum Quarterly 3(3): 1926. Zha, Daojiong. 2005. Chinas energy security and its international relations. The China and Eurasia Forum Quarterly 3(3): 3954. Wu, Kang, and Fereidu Fesharaki. 2002. Managing Asia Pacifics energy dependence on the Middle East: Is there a role for Central Asia? AsiaPacific Issues 60: 1.

China-Mideast Relations: An Overview Relations within the Pre-WWII period largely revolved around major trade routes such as the Silk Road that connected the Chinese and Middle Eastern civilizations. However, the advent of Islam and its dominance in the Middle East and the Far East marked a major development in Islamic-Chinese relations. Consistent with its global outreach at that time, China made antiimperialism a cornerstone of its foreign policy toward the Middle East. At the same time, it showed tremendous interest in resolving the Arab-Israeli conflict peacefully. When Sino-Soviet relations worsened in the 60s, China competed with the Soviets and presented itself as a reliable partner to Arabs, holding the Soviets responsible for the imbalance in the Arab-Israeli power equation. In utilizing its UN resources well, China showed significant interest in resolving the Arab-Israeli conflict via the United Nations. However, its approach to the region began shifting dramatically toward trade, and enhancing its quality relations with the Arab states, Turkey, Iran and Israel. Furthermore, there is little concern that Chinas increasing status as a world power will constitute a security threat. Hegemony, domination, and imperialism are associated with the United States and Europe. China is not seen that way.5 China offers something different to the region to the extent that at various times, many welcomed the example China provided of national autonomy; its identification with the oppressed nations; its demand for greater equality and justice within the world system; its model of discipline and frugality; and its moral, financial and technical support, usually little or nothing expected in return.6.

Thornton, John L. 2008. Long time coming: The prospects of democracy in China. Foreign Affairs, 223, January/February.

Gkay, Blent. 2009. Tectonic shifts and systemic faultlines: A global perspective to understand the 2008 2009 World Economic Crisis. Alternatives: Turkish Journal of International Relations 8(1): 33.

Energy Security: Destination and Obstacles The primary aim of Chinas global engagement is to ensure a steady flow of oil to maintain its economic growth. Energy security is defined as guaranteeing and securing oil supplies from abroad as essential to Chinas continued economic growth and modernization.7 To accomplish energy security, China has established three oil corporations. The China National Petroleum Corporation (CNPC), the National Petrochemical Corporation (Sinopec), and the National Offshore Oil Corporation (CNOOC), each of which has a unique role to play toward the realization of the far reaching goal, energy security. Chinas economic growth in the past decade averaged between 711.40%, while its oil consumption grew by 7.5%, seven times faster than the US market. There are three major impediments to Chinas energy security: insufficient domestic oil production, price fluctuations, and the lack of control over oil transport routes, both sea and land. China also understands well the sensitivity of its involvement in the region and its efforts to ensure continued access to oil from a US dominated region, therefore, continued to reduce its vulnerability to the American power in the Middle East via bilateral partnerships, particularly with its neighbors.8

Energy Security: A Theoretical Perspective There are two contending theoretical frameworks in the field relevant to Chinas energy policy in the Middle East: the realist and the liberal institutional approach. Realists believe that China would take all necessary steps to ensure its access to oil resources in the Middle East. This would include building a naval power to rival the American maritime presence in the region, to follow a pure national interest goal stripped of any moral considerations, to exchange oil for arms with the
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Douglas, John Keffer, Mathew B. Nelson and Kevin Schwartz. 2006. Fueling the Dragons flame: How Chinas energy demands affect its relationships in the Middle East. US-China Economic and Security Review Commission 1. Shichor, Yitzhak. 1979. The Middle East in Chinas Foreign Policy 19491977, 337. Cambridge: University Press.

region, to promote and exploit turbulence in the region, and attempt to exclude other actors from the Middle East. China is working within the existing institutions, which are Western in nature to meet its energy needs.9

The Political Economy of the Chinese-Middle Eastern Relations In the quest to pursue its tridimensional policy in the Middle East identified in terms of oil, arms sales, and trade, China has been navigating the treacherous waterways of the Middle East skillfully, though the task has proved to be challenging on many occasions.

The Chinese-Israeli and Arab Dimension The Israeli-Chinese partnership at times stood at odds, not only with the Arab world, but also with Israels strongest ally, the United States. China needs Arab oil, and urgently needs the Israeli route to the American top military technology which can only be accessed through Israel. Israel seems willing to pass along American military hardware and technology to China in exchange for trade, military cooperation, and political support.

The China, Iran and Saudi Arabian Dimension Remarkably, China maintains strong relationships with both Iran and Saudi Arabia. In his landmark work on China and Iran, John Garver stated that both peoples identify with each other on civilizational grounds10. After Maos revolution, the conservative Shah of Iran suspended diplomatic relations with China in 1949, and resumed them in 1971. However, between 1971 and the out break of Irans Islamic Revolution in 1979, there were few avenues of cooperation
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Alterman, John B., and John W. Garver. 2008. The vital triangle: China, the United States, and the Middle East, 100. Washington: Center for Strategic and International Studies. 10 Garver, John W. 2006. China & Iran, 5. Seattle and London: University of Washington Press.

between the two sides. Iran is surrounded by unstable governments in Iraq and Afghanistan, both of which are occupied by its traditional menace, the United States. It is also surrounded by unfriendly neighbors, Arabs and Turks, in addition to being surrounded by existing or emerging nuclear threats originating from Pakistan, Saudi Arabia, and Israel.

China, the US, and the Iranian Dimension The Obama Administration is willing to build on the European-Iranian agreements in the area of peaceful nuclear energy development in which Iran is allowed to develop nuclear energy, but not uranium enrichment. Russia and China are also helping in this aspect, whereby enriched uranium would be sent to Russia.

China, Saudi Arabia and the United States In Post WWII, China viewed Saudi Arabia with the prism of the nations under the enduring influence of imperialism. The country was first under British, then American influence since its inception in 1902. Saudis also viewed China negatively, as a Communist country, and as such it was un-Islamic to extend a hand of friendship to a godless country. Saudi Arabia was also a marginal country, and had no substantial weight in Middle East politics until the mid-1970s.

The American-Chinese and Middle Eastern Dimension Its also the most challenging to the three parties. The American presence and interest in the region goes back to the early days of the Republic. It is amazing to see how much influence the broader Middle East has had on America since its inception. The early American-Middle Eastern wars of the 18th Century encouraged the US to build a strong navy to counter the threat from the

Middle East in its commerce with Europe. In the early years of the 20th Century, up until the mid 1950s, America was the most favored, admired, and respected Great Power in the Middle East. American partnership with the region was consolidated under the FDR Administration in his meeting with King Abdul Aziz of Saudi Arabia in 194511.

The US, China, and Iraq Dimension During the Iran-Iraq War, China provided Iraq with weapons to resist the Iranian conventional superiority. China however, opposed the Iraqi Invasion of Kuwait, but also opposed the economic sanctions on Iraq. China benefited from the Food for Oil (FFO) program, and extended quality relations with Saddams regime. When the US decided to invade Iraq in 20022003, China resisted the American grounds for toppling the Iraqi government12.

Conclusion Therefore, China and the Middle Eastern states are building solid partnerships based on mutual interests. The most attractive of such ties is to provide China with a reliable source of energy, and assist China in meeting its energy security goals. Oil producing states in the Middle East have demonstrated unquestionable support of such a goal, and showed resolve in being reliable partners in providing China with the necessary energy to maintain its economic growth and its industrialization process. However, such partnership has greatly alarmed the US and some Western and non-Western countries. While resentment toward Chinas growing interest in the region has not materialized into adversarial policies on the American side, it has already brought about noticeable evils of tension between major players in the region.
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Oren, Michael B. 2007. Power, faith and fantasy: America in the Middle East 1776 to the present. New York: W.W. Norton & Company.

Shichor, Yitzhak. 1992. China and the Middle East since Tiananmen. The Annals of the American Academy of Political and Social Science 519: 86100.