China’s rising influence in the Middle East is a natural outgrowth of its pursuit for national energy security. As the Global War on Terror (GWOT) complicates relations between the United States and Middle East governments, China presents an attractive alternative for energy exporters: a voracious energy consumer without attached ideological obligations or expectations of its provider.
Beijing’s effort to secure energy access and build trade relationships with Middle East governments has translated into greater regional influence, which at times counters US foreign policy goals. The challenge for US officials is to persuade China to buy into the global energy market and away from exclusive agreements with rogue regimes and pariah states.
Securing Energy Access
Beijing has eschewed the global energy market system of publicly traded international oil companies; instead opting for a policy whereby China’s state-owned oil companies secure energy resources and transportation infrastructure (source). The Chinese government ensures the success of the state-owned oil companies by financing excessively high bids, engaging in official government visits and increasing the export of manufactured goods to the state exporter. China has employed this strategy in reaching agreements with countries throughout the Middle East region, including Algeria , Egypt , Iran , Libya , Oman , Saudi Arabia , Syria , and Yemen (source).
In addition to oil-based ventures, China is expanding its business relationships throughout the region. For instance, China’s bilateral trade with Egypt reached $2.2 billion in 2005 and could surpass Egypt’s trade volume with the US in five to six years. The Egyptian tourism industry also envisions great opportunities in a lasting relationship with China?the world’s fourth largest economy and growing. Similarly, Saudi Arabia and other Middle East oil giants are turning toward a welcoming China to invest their flush oil revenues.
Countering US Foreign Policy
Beijing’s pursuit of a Middle East foreign policy is based solely on self-interest; the character of a regime does not prevent Chinese national oil companies from reaching mutually beneficial agreements. Thus, China maintains energy relationships with countries opposed by the US and has demonstrated it will block US foreign policy goals in the region to protect its energy security.
Two prime examples are the cases of Iran and Syria. To protect its strategic energy partner, China?along with Russia –has proven to be the main obstacle preventing the UN Security Council from passing meaningful economic sanctions against Iran for failing to comply fully with the IAEA on its nuclear program. Likewise, Iran’s obstinate stance on negotiations is in part based on an assumption that China will ultimately act to protect its energy resource. In the case of Syria, the threat of UN sanctions against Damascus for nefarious involvement in Lebanese politics has made most western companies eager to exit the Syrian oil industry (source). In turn, China has been one of the major countries capitalizing on the investment vacuum. Damascus finds in Beijing a powerful economic client and a potential critical political ally with a seat on the UN Security Council.
Moving Forward
China’s ability and inclination to undermine certain US foreign policy goals in the Middle East will be decreased if it feels confident it can secure energy access through the global market system. However, Chinese officials perceive that system as inherently favoring Western companies and states (source). US officials will have to disavow China of that perception if they are to achieve the critical task outlined by State Department official Thomas J. Christensen outlined the critical task for the US government: “We are encouraging China to realize that the best way for it to pursue its energy security is to help strengthen global markets not to seek preferential equity deals with irresponsible and, ultimately, unstable regimes” (source).
