Monday, June 17, 2024

Bloomberg: Middle East wealth flows to China amid concern over future of partnership with Washington


The oil-rich Gulf states, concerned about the future of their long-standing security partnership with the United States, are seeking to leverage their wealth to deepen ties with China.Bloomberg“.

Seven months after Chinese President Xi Jinping attended the first China-Gulf summit in Riyadh, economic exchanges between the world’s second-largest economy and countries such as Saudi Arabia have accelerated, the newspaper said in a report on Sunday. For years, the UAE dominated Beijing’s crude oil purchases.

Among the deals that could benefit from closer ties in the coming months is a planned $9 billion initial public offering (IPO) in Shanghai by Chinese seed company Syngenta Group.

Advisers to the state-backed Chinese company have discussed the possibility of becoming anchor investors with Middle Eastern sovereign funds, including the Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund, Bloomberg said, according to people familiar with the matter.

The value of acquisitions and investments by Gulf companies in China rose more than 1,000 percent year-on-year to $5.3 billion, according to data compiled by Bloomberg. The data shows that this year will be very high in terms of the number of such deals.

The Abu Dhabi-based sovereign wealth fund is intensifying its operations in China to seek new investments, the company said, citing people familiar with the matter. The number of Chinese companies established in the Dubai Free Zone has increased by 24 percent.

Officials in Riyadh describe China as an essential partner in Vision 2030, Crown Prince Mohammed bin Salman’s multi-trillion dollar economic and social transformation plan. Build a futuristic city called “Neom”.

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And Bloomberg pointed out that ties between the Gulf and China will expand beyond the economic front, as at the December summit, Xi offered to mediate talks between Iran and Saudi Arabia, leading to a historic deal in March. Two arch enemies.

Some in Washington are already raising concerns that China’s growing influence in the Middle East could challenge long-term American interests.

While the United States remains the dominant military partner to the Gulf states, U.S. Central Command chairman Gen. Michael Corella recently warned in congressional testimony of concerted Chinese efforts to undermine Beijing, citing an uptick in commercial and military sales. According to the agency, to the region.

According to the agency, Gulf officials are confirming that their moves toward China are not aimed at making Washington their main partner. But they also say they prefer a broader set of global alliances, and China supports this approach.

Washington is making its own efforts to revive ties in the Gulf, and in recent months, senior US officials have visited Jeddah to renew efforts to secure a peace accord with the crown prince. Israel, based on the Abrahamic covenant.

According to Bloomberg, US officials publicly say they welcome Chinese mediation in the Middle East.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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