Nation looks to China as U.S., Arabs refuse to help

BEIRUT — Facing a worsening economic crisis and with little chance of Western or oilrich Arab countries providing assistance without substantial reforms, Lebanon’s cashstrapped government is looking east, hoping to secure investments from China that could bring relief.

But help from Beijing risks alienating the United States, which has suggested such a move could come at the cost of LebaneseU.S. ties.

A tiny nation of 5 million on a strategic Mediterranean crossroads between Asia and Europe, Lebanon has long been a site where rivalries between Iran and Saudi Arabia have played out. Now, it’s becoming a focus of escalating tensions between China and the West.

In recent months, the Lebanese pound has lost around 80% of its value against the dollar, prices have soared uncontrollably, and much of its middle class has been plunged into poverty. Talks with the International Monetary Fund for a bailout have faltered, and international donors have refused to unlock $11 billion pledged in 2018, pending major economic reforms and anticorruption measures.

Left with few choices, Prime Minister Hassan Diab’s government — supported by the Iranbacked Hezbollah and its allies — is seeking help from China, an approach that the Shiite militant group strongly supports. He is walking a tightrope. “Our move toward China is very serious but we are not turning our back to the West,” a ministerial official said, speaking on condition of anonymity because he is not authorized to talk to the media. “We are passing through extraordinary circumstances and we welcome whoever is going to assist us.”

He said China has offered to help end Lebanon’s decadeslong electrical power crisis through its state companies, an offer the government is considering.

In addition, Beijing has offered to build power stations, a tunnel that cuts through the mountains to shorten the trip between Beirut and the eastern Bekaa Valley, and a railway along Lebanon’s coast.

During a visit to Lebanon last week, Gen. Kenneth McKenzie, head of the U.S. Central Command, was asked about Lebanon and other regional countries looking to China for resources and financing.

“You get what you pay for. That’s all I have to say,” McKenzie said.