China in the Middle East: August 2024

Ismail Haniyeh Assassination: China’s Middle East engagement began on the diplomatic front this month after the assassination of Hamas’s top political leader, Ismail Haniyeh. A Chinese foreign ministry spokesperson said Beijing opposed and condemned the attack and warned “that the incident may plunge the region into greater turmoil.” During a UN Security Council session, China’s permanent representative, Fu Cong, described the assassination as “a blatant attempt to sabotage peace efforts” that “wantonly trampled on the fundamental UN Charter principle of respect for sovereignty and territorial integrity.” As the war in Gaza raged on throughout August, Chinese Foreign Minister Wang Yi called his Jordanian and Egyptian counterparts to tell them Beijing “stands firm” with Arab states, stressed the need for a permanent cease-fire, and suggested that the world leaders form a joint force on the issue. 

Criticism of Israel: Chinese criticism continued as Israel conducted an air strike that hit a school and mosque in Gaza, killing over ninety Palestinians—nineteen of whom the Israeli Defense Forces claimed to verify as Hamas and Islamic Jihad members. Beijing’s foreign ministry condemned the attack; at the United Nations, Fu described the strike as “heinous,” asserted all victims were civilians, and declared that targeting “civilians and the civilian infrastructure . . . is a red line under the international humanitarian law.” A week later, after Israel killed senior Fatah commander Khalil al-Maqdah in Lebanon, China called on its citizens to leave the Arab country “as soon as possible.” 

Political Support for Iran: Twelve hundred miles east, Beijing and Tehran celebrated fifty-three years of diplomatic relations this month. In the aftermath of Haniyeh’s death in Tehran, Wang Yi called Iran’s acting foreign minister in early August. According to a Chinese readout, Wang reaffirmed Tehran’s status as a comprehensive strategic partner and conveyed that “China supports Iran in safeguarding its sovereignty security and national dignity in accordance with the law, supports its efforts to safeguard regional peace and stability, and is ready to maintain close communication with Iran.” 

Military Support for Iran: In a significant development, the Washington Post reported in mid-August that Iran is seeking partnerships with two Chinese satellite companies to boost its surveillance capabilities. That move could augment Iran’s ability to spy on American, Israeli, and rival Arab military sites in the Middle East, improve its missiles’ targeting potential, and enhance its capacity to detect impending attacks. Tehran could also provide intelligence to its proxies in Iraq, Lebanon, Syria, and Yemen.  

Fujian Province Engagement with Riyadh: In the first three days of the month, a delegation from the Fujian Province traveled to Saudi Arabia and met with officials from across the kingdom’s ministries and state-owned companies to discuss “deep” alignment on Saudi Vision 2030 and increased cooperation in “new energy, digital economy, and other areas.” A Saudi-Chinese Media Entrepreneurs Forum was held on the sidelines of the visit, where Chinese and Saudi companies launched a media business accelerator. The visit concluded with a signed potential investment agreement between the Fujian government and state-owned Saudi Basic Industries Corp (SABIC) to build a thermoplastics plant in the Fujian province. The agreement will deepen the firm’s footprint in China: SABIC hosts a technology center in Shanghai, runs three compounding plants across the country, oversees operations in seventeen Chinese cities, and maintains two joint ventures with Chinese companies. 

MOUs with PIF: Building on Public Investment Fund (PIF) Governor Yasir Al Rumayyan’s July visit to Beijing, Saudi Arabia’s sovereign wealth fund signed memoranda of understanding with six Chinese financial institutions: the Agricultural Bank of China, Bank of China, China Construction Bank, China Export and Credit Insurance Corporation, Export-Import Bank of China, and the Industrial and Commercial Bank of China. Valued at $50 billion, the agreements aim to increase capital flows between the two countries.  

Economic Engagement with Saudi Arabia: In the middle of August, state-owned China Offshore Oil Engineering Company finished construction on one of the world’s largest offshore oil and gas platforms, capable of delivering twenty-four million tonnes of crude oil and 7.4 billion cubic meters of gas annually. Built in Qingdao, the platform will be sent to Saudi Arabia’s Marjan oil field where it will be owned and operated by Saudi Aramco and is expected produce three hundred thousand barrels a day. At the end of the month, S&P Global Ratings released a report arguing that, though the process will take time and face many challenges, Beijing and Riyadh’s deepening ties will advance use of the yuan for oil purchases. China is not just interested in Saudi Arabia’s fossil fuels. This month, state-owned conglomerate China Energy Engineering signed a $972 million contract with a group of Saudi entities, including PIF and Saudi Aramco, to build a solar power plant in Saudi Arabia. The plan expands on two other energy-cooperation projects between Chinese and Saudi companies, which were last month valued at $3 billion. 

Saudi-Chinese Cultural Ties: In other bilateral developments, Riyadh’s King Abdulaziz Public Library announced a new translation initiative to introduce Saudi culture to Chinese-speaking audiences. The first two books to be translated will be an encyclopedia on the kingdom and a book on the history of trade relations between Beijing and Riyadh. Additionally, nearly two hundred Chinese teachers were sent to the kingdom this month to teach Mandarin in Saudi schools. China also unveiled a new visa application center in Riyadh, as Saudi demand for Chinese visas has exponentially grown in recent years. 

Business in the UAE: The United Arab Emirates (UAE) also deepened ties this month with China. Chinese state-owned Cosco Shipping docked its newest Min Jiang Kou vessel in Dubai in the first week of August. The ship carried nearly five thousand electric vehicles from a multitude of Chinese manufacturers to Jebel Ali and Dammam ports as demand for Chinese automotives increases in the region. Because Dubai aims to position itself as a gateway for Chinese investments in the Arab world, the Dubai Business Forum was hosted in Beijing this month—the first time the gathering was held outside of the UAE. 

Ankara Thinks about the SCO: After Turkish leader Recep Erdoğan attended the July summit of the Chinese-led Shanghai Cooperation Organisation (SCO), Turkey's defense minister reiterated that his country remains fully committed to NATO. In a Reuters interview, he said, though membership in the US-led security bloc did not prevent Ankara’s engagement with the SCO, “our priority is to fulfil our responsibilities to NATO as an important ally and to strengthen the solidarity with our allies. Our focus should be that NATO is prepared, determined and strong.” In the middle of August, Chinese-owned Ganfeng Lithium announced plans to create a lithium battery factory in Turkey.