The China-GCC relationship has come of age

The growing convergence of interests will only serve to bring the two sides even closer in the future

Awarm reception in Riyadh for President Xi Jinping on a visit to Saudi Arabia early this month, and China’s separate summits with the GCC states and the Arab League demonstrate a nurturing relationship, one which has already overtaken EU as the biggest trading partner for the region.

Declaring that China would work to make the first Arab–China Summits “milestone events in the history of China-Arab relations,” Xi reciprocated and conveyed the direction China intends this relationship to go.

King Salman and President Xi signed a comprehensive strategic partnership agreement between the two countries. During the last 20 years, China’s relations with the six GCC states have strengthened. Initially driven by China’s increasing energy needs, the relations have now diversified into a robust economic partnership. China is one of the key players now in the Arab world’s infrastructure development, trade in goods and services, digital technology and is now entering into the field of defence technology.

The way relations are progressing China also appears destined to play a significant role in the continued growth of the GCC’s non-oil industries. People in the GCC countries are steadily being exposed to a growing Chinese technology presence, from social networking applications to digital payment platforms. Chinese influence is also becoming more noticeable in the Gulf’s financial sectors.

Twenty-one Arab states have already signed up for the Belt and Road Initiative (BRI). The UAE and Saudi Arabia are number two and three destinations by volume for Chinese construction projects under the BRI. Earlier this year, China presented a five-point initiative for the Middle East. It was based on five principles – mutual respect; upholding equity and justice; achieving nuclear non-proliferation; jointly fostering collective security; and accelerating development cooperation. China’s policy of non-interference has had remarkable success in its outreach to countries across the world. Since the end of WWII, the US has provided security to the region largely to protect its own energy supplies. For now, despite China’s economic presence, strong security ties between the US and the GCC will continue.

China’s interests in the region are obvious. The GCC region is a critical energy supplier from where China imports nearly 4 million barrels of oil a day. The Middle East is at the cross roads to Africa and Europe and China’s investments in port infrastructures at least help China secure these routes. The Arab states as a group are a potential source of diplomatic support for China at the UN and other global fora.

For Arab states, China’s growing markets, investments and technological prowess are of considerable interest.

The GCC and China have a remarkable similarity – no two areas have grown as fast as the two in the last nearly 40 years. The relationship is based on mutual interests only. This convergence of interests will grow, bringing the two sides closer in the future.

Sajjad Ashraf served as an adjunct professor at the Lee Luan Yew School of Public Policy, National University of Singapore from 2009 to 2017. He was a member of Pakistan Foreign Service from 1973 to 2008 and served as ambassador to several countries.