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Qatar’s decision to leave OPEC

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The Emirate of Qatar will leave OPEC as from January 1, 2019.

The primary reason for this choice is the Emirate’s project to become the world leader in the natural gas market, raising its production from 77 million tons per year to 110 million tons. However, there is obviously also a geopolitical and energy decision underlying Qatar’s current choice.

This is the Emirate’s final response to the boycott and blockade imposed by Saudi Arabia on Qatar in June 2017, with the support of the United Arab Emirates, Bahrain, Yemen, Maldives, the Libyan GNA, Egypt and Jordan – based on Saudi Arabia’s generic accusation whereby Qatar was supposed to sponsor and support “terrorism” on its own.

The blockade was imposed two days after President Trump had met as many as 55 Heads of Arab and Muslim countries to build a sort of NATO equivalent, always against “terrorism” – an alliance to be set up immediately to counteract, above all, the Shiite and Iranian danger.

Let us leave aside the twenty-eight pages taken from the report of the US Senate on September 11, which would definitively prove the connection between those Al-Qaeda operatives and the Saudi regime – as well as the many multiannual reports of private and public funding to the jihadists and finally the lines of credit opened again by eminent citizens of the Wahhabi Kingdom in favour of Al Baghdadi’s Syrian-Iraqi Caliphate.

The Saudis, however, are too rich not to be believed, especially by the USA – hence the great blockade on Qatar succeeded also with the support of some Western countries.

For the whole Middle East, their troops, like the US ones, reported to CENTCOM, at the Al Udeid base  having its headquarters precisely in Qatar.

The strategic characteristics of Qatar, which today wants to build its autonomous natural gas organization –  independent of the oil one of OPEC, which does not deal with gasand is, however, dominated by Saudi Arabia –  are many and particularly interesting: firstly, the Qatari people are probably the richest citizens in the world.

If we assume that the Americans’ average income is 100, that of Qatari citizens is 187.4.

Just about the size of the Falkland Islands, the Emirate has 1.9 million residents, with a very high and growing share of immigrants.

From 2000 to 2010 the Emirate’s economy grew by a 12.9% average per year.

Its future growth up to 2022 is expected to be 18% higher than the current one.

There is also an interesting geopolitical sign: Qatar  participated – with great commitment – in the Western operations against Gaddafi by supporting, in particular, the black market of Cyrenaica’s oil, together with the Turkish intelligence services.

Nevertheless Qatar supports also some “rebel” jihadist Syrian groups against Assad, thus doing half a favour to US allies – while hosting, since 2013, a political office of the Afghan Taliban, which is well known and also frequented by the US intelligence service operatives.

Qatar’s global industrial and financial investments, however, are manifold.

Through its sovereign fund, the Emirate owns significant shareholdings of the Agricultural Bank of China – and certainly the Qatari decision to leave OPEC has been blessed by China. It also has shareholding in the Airbus Group; the London Stock Exchange (15.1%); Volkswagen (17%); Lagardère, a large and diversified media and publishing company; the Paris St.Germain football club; the Virgin megastore;  the HBSC, one of the largest banking groups in the world; Credit Suisse (5.2%) and Veolia, a French water and gas utility and service company.

Not to mention the countless real estate operations: Porta Nuova in Milan; Westin Excelsior in Rome; Gallia in Milan; Costa Smeralda in Sardinia;  Deutsche Bank; Barclay’s; Royal Dutch Shell; Tiffany; Siemens; the Heathrow airport; Walt Disney and the Empire State Building.

In addition to many other shareholdings not mentioned in this paper.

However, it has also a 3% shareholding of Total, which for Italy is an extremely important sign; a majority shareholding of the Miramax entertainment and movie company, as well as shareholdings in Rosneft, the Russian giant of natural gas and raw materials, and in the big five-year project for liquefied petroleum gas (LPG) in Germany and in the EU – a 30 billion US dollar project, of which 10 invested for Germany alone.

Therefore, between Qatar and Saudi Arabia, in the fight  between oil producers and natural gas extractors, there is a real war for the hegemonic conquest of technologically advanced areas and of Europe, in particular, with a view to definitely acquiring markets and using their diversification opportunities.

Moreover, Qatar is at least as rich in natural gas as Iran (and, together with the Shiite Republic, it participates in the exploitation of the South Pars II marine field), but also as the Russian Federation.

The new  Qatar-centred “gas OPEC” means, therefore, that there is no longer the US-friendly Sunni oil OPEC,  precisely the one that organized the great petrodollar recycling started after Egypt and Syria’s Yom Kippur war against Israel in 1973.

Oil recycling at a “high” price against the US dollars which, after the end of the Bretton Woods agreements, led to the new hegemony of the US currency and its inappropriate exchange rate, despite its internal fundamentals.

“The dollar is our currency, but it is your problem”, FED Governor Paul Volcker said to his fellow Governors of the European Central Banks.

At that time, there was not yet the weak and irresolute timidity of the Euro to make the picture more complex.

The European currency is not a lender of last resort, but it plays the game of the global currency as an alternative to the US dollar, with the operational results we can imagine.

It is therefore no mere coincidence that the only strategic uses of the Euro were the minimum Iranian ones, in the oil Stock Exchanges of the islands in the Persian Gulf, or the more paraded than real ones by Saddam Hussein.

In essence, reverting to the geopolitical sense of the very recent Qatari decision to leave OPEC, this means that the 600,000 barrels/day of oil extracted from Qatar are considered fully marginal by it and certainly can never compete with Saudi Arabia’s 11 million barrels/day of Saudi Arabia.

Qatar plays the game with its natural gas – it does not play its oil cards.

The current Qatari operation, however, implies a strategic choice in the near future, which could be the creation of a “gas OPEC” with Russia and Iran, in view of a doubling of the LPG prices in 2019, with China becoming the world’s LPG top consumer and the USA the world’s top oil extractor, albeit with the new and expensive shale techniques, which generate profits only with high oil barrel prices.

Or an economic and financial alliance between Qatar, China, Japan and Russia, which could marginalize the dollar area by reducing it to oil.

At geopolitical level, this will certainly mean greater instability – not necessarily fully peaceful – between the Emirate and the Saudi Kingdom, while the former will invest – also within the EU – in the industrial processing  of LPG, which mainly regards plastics, resins and all synthetic products from hydrocarbons.

If Russia – which also plays on the Saudi table – will be able to control its oil production, in line with the Sunni OPEC, the Qatari operation will be successful, but only for the creation of the new LPG market, and Qatar will not affect the positions already reached by Saudi Arabia and its  allies.

Conversely, if Russia and Iran increase oil production, the pro-Saudi OPEC will definitely collapse and the African, Indonesian and South American production areas shall  look for other regional cartels and, hence, for other geopolitical axes.

Furthermore, the bilateral relationship between the USA and Saudi Arabia will be put to an end, given the new US production and oil power, its global exporting capacity and, finally, its autonomy from the Middle East political and financial cycles.

Moreover, according to the Emir’s policy lines, the Qatari economy  is focused on attracting and accumulating foreign investments, especially after the 2017 blockade, which has attracted much capital from Asia and the Middle East itself,  in addition to the opening of new ports and the creation of  new Special Economic Zones.

Both Saudi Arabia and Qatar have used the so-called Arab “springs” to broaden their personal power and create strong competition among the Gulf countries.

Moreover, Qatar has used the phase following the Arab “springs” to redefine its traditional expansion axes: the special relationship with the Muslim Brotherhood and its traditional link with Iran.

The Emirate, in fact, believes that the Muslim Brotherhood is the central axis of Arab politics and, hence, intends to support it.

While all the others repress it, in line with Saudi Arabia.

Even after the fall of the “Muslim Brotherhood” regime in Egypt – with the coup organized by Al Sisi in 2013 against Mohammed Morsi – Qatar keeps on supporting the fraternal Ikhwan or also Hamas and all the other organizations that have integrated into the global network of the Muslim Brotherhood.

The Saudi tension with Qatar also results from the Qatari geo-economic link with Iran and, above all, from Iran’s  economic growth after the 2014 JCPOA agreements on the Iranian nuclear capacity. Saudi Arabia wants to avoid said agreements leading to the economic, oil and military recovery of the Shiite Iran.

Furthermore it cannot be ruled out that, in the near future, Saudi Arabia – possibly supported by the USA, which now believes in every “counterterrorist” storytelling – even organizes a coup against Al-Thani and the current Qatari ruling elite.

The sequence of attempted and failed coups is already long.

It would be a geopolitical suicide, but it may happen.

Pakistan, Bangladesh and other countries are now dependent on the remittances sent from Qatar by their fellow citizens to their homeland, even if, as countries, they sided with Saudi Arabia during the blockade imposed on Qatar in 2017.

Since the beginning, however, Tunisia refused to condemn Qatar (and Italy should be more careful to these infra-Islamic shifts), while Turkey – which operated with Qatar  during the Libyan jihadist uprising – does not accept the Saudi diktat. The same obviously holds true for Iran and – probably less intuitively – for Oman.

After an ambiguous phase, even the Russian Federation  – which had not well foreseen the internal conflict on Qatar within the Gulf Security Council in 2017 – has gradually  linked itself to the Emirate, even without questioning its ties with Saudi Arabia.

Moreover, the United States has even discovered it still has a large military base in Qatar and hence cannot afford a worsening of the infra-Arab conflict and, above all, of the infra-Wahhabi conflict between Saudi Arabia and Qatar.

Obviously the issue of relations between Qatar and “terrorism”, or the link between Qatar and Iran, is a completely uncertain and widely manipulated issue.

The Emir’s speech that expressed support for Iran and Hamas and criticized the other governments of the region – a speech that allegedly was to be held on May 23, 2017 – was never delivered. There had been announcements widely publicized by the Saudi and Emirates’ news agencies, but the Emir’ speech had never been delivered.

In this regard, the official Qatar’s news agency in Doha talked about the hacking of Qatari websites, but not even this is certain.

There is also the issue of the one billion US dollars paid  as a ransom to “bandits” in Iraq by some members of the Emir’s family.

It is ascertained that part of that money arrived at the Syrian Al-Qaeda “section”, Jabhat Tahrir al Sham, with a share of funds that – not too strangely – later reached the Iranian government.

Certainly there is also the already-mentioned support for the Muslim Brotherhood and there are now ascertained links between the Ikhwan and some Iranian financial and political-military networks.

Everything is possible in the Middle East.

In Doha there is also a “historical” office of the Palestinians and also one of Hamas, which has always been an integral part of the Muslim Brotherhood, while it is certain that large amounts of money were sent by Qatar to the Egyptian Brotherhood during Morsi’s government and that the Ikhwan militias from every part of the Middle East were trained in Qatar.

Obviously, at least initially, the guerrilla warfare in Libya after Gaddafi’s fall was a clash between the forces supported by the Qatari intelligence services and those organized by the other Emirates, with a specific role played by Turkey – a loyal ally of Qatar – above all at economic level.

Westerners’ stupidity did the rest.

Moreover, Qatar also sent its troops so that the Sunnis could regain control in Bahrain during the 2011 Shiite uprising.

Nor should we forget that, apart from the Al Udeid US base in Qatar, Turkey itself is building its base in Qatar for as many as 5,000 soldiers – a base located in Tariq bin Ziyad, south of the capital city.

However, how does the Gulf Cooperation Council (GCC) – the instrument of confrontation between Saudi Arabia and Qatar – work?

Is it not affected – like OPEC – by an internal weakness that blocks it for any relevant decision?

The GCC was founded in 1981. However, the monetary union, which has been gradually abandoned by Oman and the Emirates, has never been reached.

And the GCC still regards Iran as an “imperialist” factor of radical destabilization of the Arabian peninsula, especially with the organization of Shiites in Saudi Arabia and in other areas of the Emirates.

The Shiites within the Saudi regime account for 15-20%, especially in the major oil extraction areas. Obviously the Saudi regime does not want to destabilize these areas and, above all, it does not want to break the link between the USA and the Sunni world of the Arabian Peninsula – a break that, in the near future, would lead to the victory of the Iranian  Shiites.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

Middle East

Israel and Turkey in search of solutions

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Twelve and eleven years have elapsed since the Davos and Mavi Marmara incidents, respectively, and Turkey-Israel relations are undergoing intense recovery efforts. They are two important Eastern neighbours and influence regional stability.

Currently, as in the past, relations between the two countries have a structure based on realpolitik, thus pursuing a relationship of balance/interest, and hinge around the Palestinian issue and Israel’s position as the White House’s privileged counterpart. However, let us now briefly summarise the history of Turkish-Jewish relations.

The first important event that comes to mind when mentioning Jews and Turks is that when over 200,000 Jews were expelled by the Spanish Inquisition in 1491, the Ottoman Empire invited them to settle in its territory.

Turkey was the first Muslim country to recognise Israel in 1949. Israel’s first diplomatic Mission to Turkey was opened on January 7, 1950 but, following the Suez crisis in 1956, relations were reduced to the level of chargé d’affaires. In the second Arab-Israeli war of 1967, Turkey chose not to get involved and it did not allow relations to break off completely.

The 1990s saw a positive trend and development in terms of bilateral relations. After the second Gulf War in 1991 -which, as you may recall, followed the first Iraqi one of 1980-1988 in which the whole world was against Iran (with the only exception of the Democratic People’s Republic of Korea, Syria, Libya and the moral support of Enver Hoxha’s Albania) – Turkey was at the centre of security policy in the region. In that context, Turkey-Israel relations were seriously rekindled.

In 1993, Turkey upgraded diplomatic relations with Israel to ambassadorial level. The signing of the Oslo Accords between Palestine and Israel led to closer relations. The 1996 military cooperation agreement was signed between the two countries in the fight against the Kurdistan Workers’ Party (PKK) in Turkey, which provided significant logistical and intelligence support to both sides.

In the 2000s, there was a further rapprochement with Israel, due to the “zero problems with neighbours” policy promoted by Erdoğan’s Justice and Development Party. I still remember issue No. 3/1999 of the Italian review of geopolitics “Limes” entitled “Turkey-Israel, the New Alliance”.

In 2002, an Israeli company undertook the project of modernising twelve M-60 tanks belonging to the Turkish armed forces. In 2004, Turkey agreed to sell water to Israel from the Manavgat River.

Prime Minister Erdoğan’s visit to Israel in 2005 was a turning point in terms of mediation between Palestine and Israel and further advancement of bilateral relations. In 2007, Israeli President Shimon Peres and Palestinian President Mahmud Abbas spoke at the Turkish Grand National Assembly one day apart. High-level visits from Israel continued.

On December 22, 2008, Israeli Prime Minister Ehud Olmert came to Ankara and met with Prime Minister Recep Tayyip Erdoğan. In that meeting, significant progress was made regarding Turkey’s mediation between Israel and Syria.

Apart from the aforementioned incidents, the deterioration of Turkish-Israeli relations occurred five days after the above stated meeting, i.e. Operation “Cast Lead” against Gaza on December 27, 2008. After that event, relations between the two sides were never the same as before.

Recently, however, statements of goodwill have been made by both countries to normalise political relations. In December 2020, President Erdoğan stated he wanted to improve relations with Israel and said: “It is not possible for us to accept Israel’s attitude towards the Palestinian territories. This is the point in which we differ from Israel – otherwise, our heart desires to improve our relations with it as well”.

In its relations with Israel, Turkey is posing the Palestinian issue as a condition. When we look at it from the opposite perspective, the Palestinian issue is a vital matter for Israel. It is therefore a severe obstacle to bilateral relations.

On the other hand, many regional issues such as Eastern Mediterranean, Syria and some security issues in the region require the cooperation of these two key countries. For this reason, it is clear that both sides wish at least to end the crisis, reduce rhetoric at leadership level and focus on cooperation and realpolitik areas.

In the coming months, efforts will certainly be made to strike a balance between these intentions and the conditions that make it necessary to restart bilateral relations with Israel on an equal footing. As improved relations with Israel will also positively influence Turkey’s relations with the United States.

Turkey seeks to avoid the USA and the EU imposing sanctions that could go so far as to increase anti-Western neo-Ottoman rhetoric, while improved relations with Israel could offer a positive outcome not only to avoid the aforementioned damage, but also to solve the Turkish issues related to Eastern Mediterranean, territorial waters, Libya and Syria. Turkey has no intention of backing down on such issues that it deems vital. Quite the reverse. It would like to convey positive messages at the level of talks and Summits.

Another important matter of friction between Turkey and Israel is the use of oil and gas in the Eastern Mediterranean reserves between Egypt, Israel, Greece and Cyprus (Nicosia).

This approach is excluding Turkey. The USA and the EU also strongly support the current situation (which we addressed in a previous article) for the additional reason that France has been included in the equation.

The alignment of forces and fronts in these maritime areas were also widely seen during the civil war in Libya, where Turkey, Egypt, the United Arab Emirates, France, as well as other players such as Russia, Italy, etc. came into the picture.

Ultimately, a point of contact between Turkey and Israel is the mediation role that the former could play in relations between Iran and Israel, especially after the improvement of Turkish-Iranian relations.

Indeed, in the aftermath of the U.S. airstrike in Baghdad – which killed Iranian General Qassem Soleimani on January 3, 2020 -the Turkish Foreign Minister stated that the U.S. action would increase insecurity and instability in the region. He also reported that Turkey was worried about rising tensions between the United States and Iran that could turn Iraq back into an area of conflict to the detriment of peace and stability in the region. There was also a condolence phone call from President Erdoğan to Iranian President Rouhani, urging him to avoid a conflictual escalation with the United States following the airstrike.

Consequently, it is in the Turkish President’s interest to maintain an open channel with Iran, so that he himself can soften the mutual tensions between Israel and Iran, and – in turn – Israeli diplomacy can influence President Biden’s choices, albeit less pro-Israel than Donald Trump’s.

Turkey is known to have many relationship problems with the United States – especially after the attempted coup of July 15-16, 2016 and including the aforementioned oil issue – and realises that only Israel can resolve the situation smoothly.

In fact, Israel-USA relations are not at their best as they were under President Trump. President Erdoğan seems to be unaware of this fact, but indeed the Turkish President knows that the only voice the White House can hear is Israel’s, and certainly not the voice of the Gulf monarchies, currently at odds with Turkey.

Israel keeps a low profile on the statements made by President Erdoğan with regard to the Palestinians- since it believes them to be consequential – as well as in relation to a series of clearly anti-Zionist attitudes of the Turkish people.

We are certain, however, that President Erdoğan’s declarations of openness and Israeli acquiescence will surely yield concrete results.

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Middle East

The 25-year China-Iran agreement

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On March 27, 2021, a document entitled “Comprehensive Document of Iran-China Cooperation” was signed by Javad Zarif, Iran’s Foreign Minister, and his Chinese counterpart. The Iranian regime’s Supreme Leader Ali Khamenei had previously called “the agreement between the presidents of Iran and China correct and wise.” However, the Iranian people have widely criticized it as entirely against their national interests. Iranian officials have not even publicized the document’s contents yet probably because it is highly contentious.

In 2019, excerpts from this document were revealed by the Economist Petroleum news site. The details included:

  • China invests $460 billion in Iranian oil and transportation sectors. China will get its investment back from the sale of Iranian crude during the first five years.
  • China buys Iranian petroleum products at least 32% cheaper.
  • The Chinese can decide before other companies whether to participate in completing all or part of a petrochemical project.
  • 50,000 Chinese security personnel will be deployed to protect Chinese projects in Iran.
  • China has the right to delay the repayment of its debts for up to two years in exchange for Iranian products’ purchase.
  • At least one Russian company will be allowed to participate in the Tabriz-Ankara gas pipeline design together with the Chinese operator.
  • Every year, 110 senior Revolutionary Guards officers travel to China and Russia for military training. 110 Chinese and Russian advisers will be stationed in Iran to train Revolutionary Guards officers.
  • Development of Iranian military equipment and facilities will be outsourced to China, and Chinese and Russian military aircraft and ships will operate the developed facilities.

Even some circles within the regime have criticized the agreement. The state-run Arman newspaper wrote, “China has a 25-year contract with Iran and is investing $460 billion in Iran. It is somewhat ambiguous. Presently, China is holding the money it owes us and blames it on the U.S. sanctions. How can we trust this country to invest $460 billion in Iran?”

Last year, Iran and China had the lowest trade in the previous 16 years, and according to statistics, by the end of 2020, the volume of trade between Iran and China was about $16 billion, which, including undocumented oil sales, still does not reach $20 billion.

Jalal Mirzaei, a former member of Iran’s parliament, said: “If in the future the tensions between Tehran and Washington are moderated, and we see the lifting of some of the sanctions, China can also provide the basis for implementing the provisions of this document, but if the situation continues like today, Beijing will not make any effort to implement the document, as it is essentially unable to take concrete action on the ground because of the sanctions.”

China’s objectives

Iran is vital to China in two ways, through its geopolitical location and its geo-economic importance. China knows that it does not have enough natural resources and is currently having a hard time supplying them from Russia and Saudi Arabia. Saudi Arabia supplies its energy needs from oil giant Aramco, half of which is owned by the United States. That is why China is looking for a safe alternative that the United States will not influence, and the only option is Iran. They may also have a two-pronged plan in Iran, which involves using Iran’s profitable market and making Iran into a lever of pressure against the United States for additional concessions.

The Iranian regime’s objectives

The deal could deepen China’s influence in the Middle East and undermine U.S. efforts to isolate the Iranian regime. While the international dispute over the Iranian regime’s nuclear program has not been resolved, it is unclear how much this agreement could be implemented. The regime intends to make it a bargaining chip in possible future nuclear negotiations. However, some of Iran’s top authorities believe that China and Russia cannot be trusted 100 percent.

Due to the sanctions, the regime has a tough time to continue providing financial support to its proxy militias in the region. The regime also faced two major domestic uprisings in 2017 and 2019. Khamenei’s regime survived the widespread uprisings by committing a massacre, killing 1,500 young protesters in the 2019 uprising alone, according to the Iranian opposition, the National Council of Resistance of Iran (NCRI) and later confirmed by the Iranian regime’s Interior Ministry officials. Now with the coronavirus pandemic, Khamenei has been able to delay another major uprising.

Iran’s economy is on the verge of collapse. Khamenei must bow to western countries’ demands regarding the nuclear issue, including an end to its regional interventions and its ballistic missile program. Khamenei will struggle to save his regime from s imminent uprisings and a deteriorating economy that will undoubtedly facilitate more protests by the army of the unemployed and the hungry at any moment.

Unlike the 2015 JCPOA, the Iranian regime in 2021 is in a much weaker position. In fact, by many accounts, it is the weakest in its 40-year history. By signing the recent Iran-China agreement and auctioning Iranian resources, Khamenei wants to pressure the United States to surrender and restore the 2015 JCPOA as quickly as possible. But in the end, this pivot will not counteract domestic pressures that target the regime’s very existence.

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Middle East

China-Arab Relations: From Silk to Friendship

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China and the Arabs have a long and rich economic and cultural history, and this distinguished relationship still exists today, with a promising future. This bilateral relationship between the two nations is based on the principles of respect and non-interference in internal affairs or foreign policies. Therefore, China’s relationship with the Arabs as well as with other nations is unique and a model to be followed. If you meet a Chinese person, the first phrase will be “Alabo” or an Arab in Mandarin, and he/she will welcome you. The Chinese state’s dealings with its counterparts can be measured based on the model of this Chinese citizen. China deals with the Arabs on the basis of friendship and historical ties.

The history of Sino-Arab relations goes back to the Tang Dynasty, and these relations developed with the flourishing of trade between the two nations. Since China was famous for its high quality silk, this trade route was called the “Silk Road”. Baron Ferdinand Freiherr von Richthofen, better known in English as Baron von Richthofen, was a German traveller, geographer, and scientist. He is noted for coining the terms “Seidenstraße” and “Seidenstraßen” = “Silk Road” or “Silk Route” in 1877.

Chinese-Arab relations have developed in contemporary history. In 1930, China established official relations with the Arab Republic of Egypt and the Kingdom of Saudi Arabia. A library in China was named the “Fouad Islamic Library”, after the late Egyptian king, “Fuad the First”. In 1956, Egyptian President Gamal Abdel Nasser cut ties with China and established relations with the Communist People’s Republic of China and inaugurated an embassy in Egypt. In the same year, the Arab League established relations with the People’s Republic of China. By the year 1990, all Arab countries cut their relations with the Republic of China and established diplomatic relations with the People’s Republic of China.

In 2004, the China-Arab Cooperation Forum was established, and today it is considered a milestone for the Sino-Arab relationship. At its inauguration, Chinese Foreign Minister Li Zhaoxing delivered a speech stating:“The Arab world is an important force on the international scene, and that China and the Arab countries have enjoyed a long friendship. Our similar history, our common goals and our broad interests have been credited with enhancing cooperation between the two sides; no matter how the international situation changes, China has always been the sincere friend of the Arab world”. The China-Arab Cooperation Forum was officially established during the visit of Chinese President Hu Jintao to the headquarters of the League of Arab States in January of 2004.

Hu Jintao indicated at that time that the formation of the forum is a continuation of the traditional friendship between China and the Arab world. The Chinese president said at the time, “The establishment of the forum is conducive to expanding mutual cooperation in a variety of fields. He added that China had made four proposals; First, maintaining mutual respect, fair treatment and sincere cooperation at the political level. Second, strengthening economic and trade relations through cooperation in the fields of investment and trade, contracted projects, labor services, energy, transportation, communications, agriculture, environmental protection and information. Third, expand cultural exchanges. Finally, conducting training for the employees.”

During the second session of the forum in Beijing in 2006, China showed its sympathy for the issues of the Arab world and its interest in the peace process between Palestine and Israel, since China is a peace-loving country; it presented the idea of “a nuclear-free Middle East”. China is the best friend of the Arab countries today. Although some Arab countries have strong relations with the West whose policy does not match the Chinese policy, but all Arab countries agree on friendly and good relations with the People’s Republic of China.

The Arab citizen is not interested today in the foreign policy of the US, the deadly weapons of the US and Russia, or European culture, but rather the livelihood and economy, and this is what China provides through its wise economic policy. In 2013, Chinese President Xi Jinping launched the Belt and Road Initiative, or New Silk Road, which will restore glow to China-Arab relations; as the Arab world is in a strategic location on the initiative map. Thus, the Arab countries are an important partner for China in the initiative. Although the volume of trade exchanges between China and the Arab countries exceeded 200 billion US dollars, which increased 10 times over the past decade, there was no commercial and institutional arrangement to facilitate trade between the two sides.

China, as a peaceful and non-invasive country, aims to promote economic cooperation with Arab region on an equal basis because it considers the Arab world a historic partner. The historical experience of the Arabs with the Chinese through the Silk Road has confirmed that China differs from the nations of colonialism and imperialism, which consider the Arab region a place rich in natural resources only. In his historic speech at the Arab League, Chinese President Xi stressed that China will not seek to extend influence and search for proxies in the Middle East. The Chinese initiatives will contribute to establishing security and stability through economic development and improving the people’s livelihood, in line with the post-2015 development agenda and the aspirations of the Arab people for a better life, as the Chinese experience proves that development is the key to digging out the roots of conflicts and extremism in all its forms.

China is a neutral country and does not favor the use of violence. During the Syrian crisis, for example, the Chinese envoy to the Security Council raised his hand three times, meaning that China, with its wise diplomacy, supported the Syrian regime without entering the military war. During the recent Chinese military parade, Chinese President Xi Jinping revealed some Chinese military capabilities and thus sent a message to the enemies that China will always be ready if a war is imposed on it, and a message of support to China’s allies. The Arab region today needs a real partner who possesses economic and military power and international political influence, such as China; to ensure the success of the Belt and Road Initiative, and to consolidate the China-Arab relations and raise it to the level of a strategic alliance.

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