Silk Roads and Power Plays: China’s Quest for Power in West Asia

By Reewa Goswami*

Published on November 5, 2024

China's rising presence in West Asia corresponds to its broader objective of establishing itself as a global power through its growing political, economic, developmental, and security footprints. The region's geopolitical relevance, notably its enormous oil reserves and geostrategic location are consistent with China's long-term objectives of ensuring energy supplies, expanding trade and commerce, and placing itself as a counterweight to American dominance. Beijing's response to the Israel-Hamas war, particularly since October 2023, demonstrates a pragmatic approach, to protecting its material interests and promoting its influence in the region, as opposed to America’s role in the region, which is more interventionist and anchored in its alliance with Israel.  The article examines China’s stakes in West Asia, and its approach to the Israel-Hamas war while assessing the contrast with America’s approach.

The Dragon’s Stride

China's strategic ties with West Asia are inextricably linked to its demand for energy supply and security, infrastructure development, and trade expansion. The region is the source of some of China's major energy acquisitions, with the country purchasing more than half of its oil from Saudi Arabia, Iran, Iraq, and the United Arab Emirates. As the Chinese economy grows, so does the oil demand, making long-term energy deals increasingly important. China's strategy in the region is primarily moored in its Belt and Road Initiative (BRI) and the aim to integrate West Asia into its global trade and infrastructure-building network. Within this broader economic strategy, China's stance on the Israel-Hamas war centres on upholding neutrality to safeguard its widespread investments. The BRI aims to connect Asia, Europe, and Africa through a network of ports, railways, highways, and energy pipelines. Hence, it is one of the main pillars of China's strategy in West Asia, which is the confluence of these regions. This strategy has enabled China to position itself as an important player and shareholder in the region, offering funding for development initiatives in exchange for access to markets and resources.

As one of China's largest energy suppliers, Saudi Arabia has assumed a vital role in Beijing's West Asia strategy. In December 2022, China and Saudi Arabia inked 35 deals totalling $30 billion in energy, technology, and infrastructure domains. This includes setting up a logistical base in Saudi Arabia, thereby improving trade lines between Asia, Europe, and Africa. Saudi Arabia's Vision 2030, which seeks to diversify its economy, is consistent with China's BRI, positioning the kingdom as a key factor in China's regional agenda. The partnership includes clean energy initiatives such as arrangements to create green hydrogen and renewable energy facilities, demonstrating China's aim to diversify its energy imports.

The UAE is another significant collaborator in China's West Asia strategy, acting as both a hub for Chinese firms and a logistics centre for regional trade. The UAE is China's top non-oil trading partner in the Arab region, with the volume of goods anticipated to reach U.S.D 200 billion by 2030 between the two countries, demonstrating the UAE's relevance as a transit point for Chinese exports to West Asia and Africa. The Khalifa Port, where China’s COSCO Shipping operates a container port, is a key component of China's BRI, connecting the region to East Asia.

Despite the hurdles faced by global sanctions, China continues to have close business relations with Iran, relying on energy cooperation and infrastructure development. China and Iran signed a 25-year cooperation agreement in 2021, with Chinese investments in Iran's oil, gas, and petrochemical sectors valued at $400 billion. China has also played a substantial role in the advancement of Iran's transport infrastructure, such as railroads and harbours, which are critical to the BRI. Iran's geostrategic location, bordering both the Caspian Sea and the Persian Gulf, makes it an indispensable component in China's aspirations to establish a trade corridor that bypasses U.S.-controlled marine chokepoints such as the Strait of Malacca.

China's association with Israel has improved dramatically in recent years with China being Israel’s second-largest trading partner globally. Investments were particularly made in terms of technological advances and infrastructure. Between 2015 and 2018, Chinese investments in Israel surged, especially in artificial intelligence, cyber security, and renewable energy. The most prominent endeavour is China's administration of the Haifa Port, which is crucial for trade between East Asia and Europe. Despite U.S. insistence over security concerns, Israel has embraced Chinese expenditures, perceiving China as an essential participant in its ambitions to broaden its fiscal and technological influence internationally.

China’s Strategic Neutrality

The underpinnings of economic pragmatism describe China’s position on the Israel-Palestine issue more than anything even while it formally favours a two-state solution and urges for a peaceful settlement. Unlike the U.S., which has practically always taken a direct and partisan approach to the dispute contrary to its official stand, China has attempted to remain ‘neutral’, advocating for peaceful negotiation and a two-state solution. Since the October 2023 escalation, China's stance has been strikingly different from that of the U.S., with a focus on diplomatic engagement and economic stability rather than military intervention or open support for one side. China's involvement in Israel and Arab countries demands a measured response to the issue. While China has strong economic relations with Israel, particularly in the technology and infrastructure sectors, it has also shown its support for the Palestinian cause in international forums. This pragmatic approach enables China to retain connections with both Israel and Arab countries while avoiding the geopolitical issues that have shaped America’s involvement in the region. This also ensures the protection of its assets and uninterrupted energy supply. China's advocated desire to resolve the Israel-Palestine dispute through multilateral institutions such as the United Nations is a significant departure from the U.S., which has usually preferred bilateral diplomacy. China has advocated for further international involvement in mediating the crisis, criticizing the U.S. for its unilateral support for Israel.  Unlike the U.S., China has been attempting to position itself as an advocate for economic development and regional stability, avoiding a hard security lens. However, China’s ‘neutrality’ is not above question. It is yet to condemn Hamas’ actions on October 7th, 2023.

While the U.S. has depended primarily on military alliances and arms sales to preserve its sway in West Asia, China has prioritized economic cooperation. The U.S. has military bases throughout the region and has been involved in various conflicts, including the wars in Iraq and Afghanistan. In contrast, China has avoided direct military action, instead expanding its influence through commerce, infrastructure projects, and energy alliances. The U.S. has historically adopted a partisan approach in the Israel-Palestine conflict, firmly supporting Israel while providing scant support for Palestinian aspirations.  Through ‘neutrality’, China aims to engage with both sides, establishing itself as a prospective mediator as it did for the Saudi-Iran Deal amongst others.

Finally, China's engagement with West Asia demonstrates its desire to influence global power dynamics through a strategy based on economic integration and diplomatic pragmatism rather than military intervention. Is China playing a much more constructive role than the U.S. in this particular West Asian turmoil and bloodshed, notwithstanding its limited sway over the conflict? China seems to be cementing its place as an economic partner in the area by investing extensively in energy resources, infrastructure, and trade networks, particularly through the BRI, which fills gaps left by traditional Western powers and fosters co-dependency. China leverages economic stability and development as levers of influence, cultivating partnerships with both Israel and Arab governments while remaining politically neutral in sensitive subjects such as the Israel-Palestine dispute as the region is imperative to China’s prosperity. China's non-interventionist, development-first strategy contrasts heavily with the U.S.' security-focused approach.

Does this make it an appealing package for countries seeking economic progress without undue political pressure? It is noteworthy that China, simultaneously, has suffered multiple dents in its perception owing to its infamous policy of debt trap amidst selling economic aspirations to smaller and lesser-developed nations among which some of them previously viewed China through rose-tinted glasses. Furthermore, China’s aggressive expansionist attitude has intensified hostilities with regional countries. Consequently, its ambitions of contesting U.S. supremacy lost more potency than it gained. Despite formally endorsing the BRI, Turkey, Israel, and Jordan have reservations related to geopolitical issues, strategic autonomy, debt burden, and transparency. 

As the dragon spreads its wings, its impact on the political and economic landscape of West Asia will be a critical variable to assess and analyze in the short, medium, and long term. The U.S. calibrates its vast military-industrial complex and the influential role of the pro-Israel lobby and electorate in its political number games. Meanwhile, China, much like Russia, seeks to capitalize on anti-U.S. sentiment, foster an environment conducive to achieving its economic interest, resist U.S. dominance, and broaden its sphere of influence in the long run. 

*The Author is a Research Intern at the Kalinga Institute of Indo-Pacific Studies (KIIPS). She is a Post Graduate in Political Science with a Specialization in International Relations, Central University of Jharkhand.

Disclaimer: The Views in the Article are those of the Author

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