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When a group of Arab states launched their “looking to the East” strategy several years ago， their aim to seek development opportunities in the Far East held China as one of its major targets. Now， China and Arab states are picking up the pace for broader cooperation as the former moves to open up to its west by building “one belt and one road”—namely， the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
At the Sixth Ministerial Conference of the China-Arab States Cooperation Forum （CASCF） recently concluded in Beijing， Chinese President xi Jinping outlined top-level plans for cooperation with Arab states. The two sides have also mapped out a 10-year development plan for future cooperation， aiming to upgrade Sino-Arab relations.
Analysts noted that xi’s proposal and China’s “one belt and one road” strategy bring new opportunities for Sino-Arab cooperation. The new framework adopted at the CASCF Ministerial Conference demonstrates the desire of both sides to forge in-depth ties and elevate the Sino-Arab strategic partnership to a new level.
New initiatives
At the opening ceremony of the CASCF conference， President xi proposed a comprehensive Sino-Arab cooperation strategy when delivering a keynote address， dubbed “1+2+3”： One refers to energy cooperation； two refers to improving trade and investment as well as cooperation in infrastructure construction； and the two sides’cooperation in the three new sectors of nuclear energy， aerospace technology and new energy should be enhanced.
Li Shaoxian， vice President of the China Institutes of Contemporary International Relations， said there was a misunderstanding in the past that Sino-Arab relations equated to the oil trade.
For instance， Li said， of the $240 billion bilateral trade volume between China and Arab states in 2013， $130 billion came from activities other than the oil and gas trade. “Energy cooperation is the centerpiece of Sino-Arab relations， but the 1+2+3 strategy proposed by President xi will further enrich the content of cooperation between China and the Arab world.”
Li Guofu， a senior research fellow with the China Institute of International Studies（CIIS）， said the 1+2+3 cooperation framework can be seen as the pinnacle of the Sino-Arab collaborative mission.
The senior researcher further explained that energy is the traditional field of cooperation between the two sides， which has allowed for the formation of mature and stable overall relations. Having energy cooperation as the main axis means deepening cooperation for the whole industrial chain of oil and natural gas， ensuring the safety of energy transport routes as well as establishing a mutually beneficial， safe and reliable Sino-Arab relationship. Infrastructure construction cooperation highlights both the Arab states’ demand and China’s advantage. Meanwhile， by improving trade and investment， China can help Arab countries promote industrialization and create jobs， said Li of the CIIS. And the third part of the strategy is helpful in creating new growth points and adding value to Sino-Arab economic cooperation.
“Arab states are anticipating collaboration with China in these fields because it not only helps improve people’s livelihood but also contributes to their industrial and scientific development，” Li added.
The Arab world in turn holds high expectations for the opportunities presented by increased relations with China. When interviewed by Chinese reporters in Beijing during the recent CASCF Ministerial Conference， Ibrahim Seif， Jordan’s Minister of Planning and International Cooperation， said President xi’s proposals have paved the way for a greater partnership between China and the Arab world， adding that it enhances cooperation in economic， commercial and cultural fields. “We in Jordan are very interested in developing our relations with China and we are working on implementing agreements reached between the leaders of China and Jordan to expand cooperation，”Seif said.
In an interview with China’s xinhua Ne ws Agency， Ibrahim al-Ameri， a professor of politics at Baghdad University， said xi’s proposal would boost economic， social and cultural ties between China and the Arab world. “The Chinese president’s call to promote cooperation is a great opportunity for Arab countries， including Iraq， to build their own prosperity and live in peace and harmony with other nations，” he said.
Eastern opportunities
Not long ago， Tamer El Zayat， a renowned senior economist at Saudi Arabia’s National Commercial Bank， suggested in an Arab News opinion piece that Arab states should strengthen their commitment to looking to the East.
Zayat said in his article that China is the answer to a host of questions—”Which is the fastest growing economy in the world during the last decade？ Which economy is the largest consumer of most resources？ And where will the huge capacity in Saudi petrochemicals be sold？”
Chinese analysts predicted that the “looking to the East” strategy of Arab states will become a long-term trend. For decades， with the exception of some Gulf oil-producing countries， many Arab states have continued to face severe challenges in economic development and improvement of their people’s livelihood， leaving them in a weak position in terms of the global economic order. Also， Western countries often fail to deliver their committed assistance to the Arab world. Against this background， many Arab states are eyeing emerging economies in the Asia-Pacific region， particularly China， as they move away from reliance on the West. “China’s high-speed growth appeals to Arab states. A friendly relationship is a necessity for both China and Arab states as they pursue all-round development，” said An Huihou， former Chinese Ambassador to Egypt. Moreover， the social turmoil in the Arab world since the end of 2010 has forced these countries to turn their focus to economic development. Thus， China has become an obvious choice as a cooperation partner.
In the past decade， Sino-Arab economic relations have seen substantial progress. Arab states became China’s sixth largest trade partner in 2013. Bilateral trade volume increased from $25.5 billion in 2003 to about $240 billion in 2013， representing an annual growth of 25 percent. In the same period， the business volume of Chinese engineering contracts in Arab states increased from $2.6 billion to $29.1 billion.
Though the economic relationship is growing rapidly， there is still room for improvement. President xi said in his keynote address that China’s imports from Arab countries in 2013 amounted to $140 billion， but only accounts for about 7 percent of the $2 trillion of goods China imports annually. Meanwhile， China’s direct investment in Arab countries now makes up just 2.2 percent of the $100 billion China invests abroad each year. xi told his audience that， “Where there is a gap， there are potential opportunities.” He said that China will import over $10 trillion in goods and make more than $500 billion in direct investment abroad in the coming five years， a prospect that will surely benefit Arab countries.
During the latest CASCF conference， China pledged to increase its trade with the Arab world from last year’s $240 billion to $600 billion， and increase non-financial investment stock in Arab states from last year’s $10 billion to $60 billion in the next 10 years. Currently， China’s northwestern provinces， home to most of the country’s Muslims， have come to the forefront of Sino-Arab cooperation. The China-Arab States Expo， annually held in yinchuan， capital city of Ningxia Hui Autonomous Region， has served as an important platform for promoting economic and trade exchanges between the two sides.
Solid foundation
Liu Baolai， former Chinese Ambassador to the United Arab Emirates and Jordan， said that the CASCF has played a significant role in promoting Sino-Arab relations since its establishment 10 years ago. China’s “one belt and one road” strategy will now add new dimensions to Sino-Arab cooperation on the CASCF platform. In his speech， President xi called for joint efforts in building the Silk Road Economic Belt and the 21st Century Maritime Silk Road. He encouraged the two sides to pool wisdom and share ideas with each other to achieve positive results in their joint endeavor， so that the development of the “one belt and one road” will accommodate the interests and concerns of all parties.
“To implement the strategy， the two sides first should promote the establishment of a free trade area between China and the Gulf Cooperation Council. It will help advance the comprehensive development of Sino-Arab economic relations，” Liu said to Beijing Review.
Liu said that Gulf states now are advancing railway development. China is in a strong position to play a role in railway construction in the region； it can also help link regional railways to the broader Eurasian railway network. In addition， China can invest in the construction of several large petrochemical projects in Arab states to promote employment in the region.
Ghanim al-Shibli， head of the Arab League（AL） mission in China， said in an interview with xinhua that xi’s proposal on the “one belt and one road” had laid a solid foundation for deepening Sino-Arab relations and would serve as a new starting point for the CASCF.
“The AL will work with China to push forward the construction of the ‘one belt and one road’，” he added.
At the Sixth Ministerial Conference of the China-Arab States Cooperation Forum （CASCF） recently concluded in Beijing， Chinese President xi Jinping outlined top-level plans for cooperation with Arab states. The two sides have also mapped out a 10-year development plan for future cooperation， aiming to upgrade Sino-Arab relations.
Analysts noted that xi’s proposal and China’s “one belt and one road” strategy bring new opportunities for Sino-Arab cooperation. The new framework adopted at the CASCF Ministerial Conference demonstrates the desire of both sides to forge in-depth ties and elevate the Sino-Arab strategic partnership to a new level.
New initiatives
At the opening ceremony of the CASCF conference， President xi proposed a comprehensive Sino-Arab cooperation strategy when delivering a keynote address， dubbed “1+2+3”： One refers to energy cooperation； two refers to improving trade and investment as well as cooperation in infrastructure construction； and the two sides’cooperation in the three new sectors of nuclear energy， aerospace technology and new energy should be enhanced.
Li Shaoxian， vice President of the China Institutes of Contemporary International Relations， said there was a misunderstanding in the past that Sino-Arab relations equated to the oil trade.
For instance， Li said， of the $240 billion bilateral trade volume between China and Arab states in 2013， $130 billion came from activities other than the oil and gas trade. “Energy cooperation is the centerpiece of Sino-Arab relations， but the 1+2+3 strategy proposed by President xi will further enrich the content of cooperation between China and the Arab world.”
Li Guofu， a senior research fellow with the China Institute of International Studies（CIIS）， said the 1+2+3 cooperation framework can be seen as the pinnacle of the Sino-Arab collaborative mission.
The senior researcher further explained that energy is the traditional field of cooperation between the two sides， which has allowed for the formation of mature and stable overall relations. Having energy cooperation as the main axis means deepening cooperation for the whole industrial chain of oil and natural gas， ensuring the safety of energy transport routes as well as establishing a mutually beneficial， safe and reliable Sino-Arab relationship. Infrastructure construction cooperation highlights both the Arab states’ demand and China’s advantage. Meanwhile， by improving trade and investment， China can help Arab countries promote industrialization and create jobs， said Li of the CIIS. And the third part of the strategy is helpful in creating new growth points and adding value to Sino-Arab economic cooperation.
“Arab states are anticipating collaboration with China in these fields because it not only helps improve people’s livelihood but also contributes to their industrial and scientific development，” Li added.
The Arab world in turn holds high expectations for the opportunities presented by increased relations with China. When interviewed by Chinese reporters in Beijing during the recent CASCF Ministerial Conference， Ibrahim Seif， Jordan’s Minister of Planning and International Cooperation， said President xi’s proposals have paved the way for a greater partnership between China and the Arab world， adding that it enhances cooperation in economic， commercial and cultural fields. “We in Jordan are very interested in developing our relations with China and we are working on implementing agreements reached between the leaders of China and Jordan to expand cooperation，”Seif said.
In an interview with China’s xinhua Ne ws Agency， Ibrahim al-Ameri， a professor of politics at Baghdad University， said xi’s proposal would boost economic， social and cultural ties between China and the Arab world. “The Chinese president’s call to promote cooperation is a great opportunity for Arab countries， including Iraq， to build their own prosperity and live in peace and harmony with other nations，” he said.
Eastern opportunities
Not long ago， Tamer El Zayat， a renowned senior economist at Saudi Arabia’s National Commercial Bank， suggested in an Arab News opinion piece that Arab states should strengthen their commitment to looking to the East.
Zayat said in his article that China is the answer to a host of questions—”Which is the fastest growing economy in the world during the last decade？ Which economy is the largest consumer of most resources？ And where will the huge capacity in Saudi petrochemicals be sold？”
Chinese analysts predicted that the “looking to the East” strategy of Arab states will become a long-term trend. For decades， with the exception of some Gulf oil-producing countries， many Arab states have continued to face severe challenges in economic development and improvement of their people’s livelihood， leaving them in a weak position in terms of the global economic order. Also， Western countries often fail to deliver their committed assistance to the Arab world. Against this background， many Arab states are eyeing emerging economies in the Asia-Pacific region， particularly China， as they move away from reliance on the West. “China’s high-speed growth appeals to Arab states. A friendly relationship is a necessity for both China and Arab states as they pursue all-round development，” said An Huihou， former Chinese Ambassador to Egypt. Moreover， the social turmoil in the Arab world since the end of 2010 has forced these countries to turn their focus to economic development. Thus， China has become an obvious choice as a cooperation partner.
In the past decade， Sino-Arab economic relations have seen substantial progress. Arab states became China’s sixth largest trade partner in 2013. Bilateral trade volume increased from $25.5 billion in 2003 to about $240 billion in 2013， representing an annual growth of 25 percent. In the same period， the business volume of Chinese engineering contracts in Arab states increased from $2.6 billion to $29.1 billion.
Though the economic relationship is growing rapidly， there is still room for improvement. President xi said in his keynote address that China’s imports from Arab countries in 2013 amounted to $140 billion， but only accounts for about 7 percent of the $2 trillion of goods China imports annually. Meanwhile， China’s direct investment in Arab countries now makes up just 2.2 percent of the $100 billion China invests abroad each year. xi told his audience that， “Where there is a gap， there are potential opportunities.” He said that China will import over $10 trillion in goods and make more than $500 billion in direct investment abroad in the coming five years， a prospect that will surely benefit Arab countries.
During the latest CASCF conference， China pledged to increase its trade with the Arab world from last year’s $240 billion to $600 billion， and increase non-financial investment stock in Arab states from last year’s $10 billion to $60 billion in the next 10 years. Currently， China’s northwestern provinces， home to most of the country’s Muslims， have come to the forefront of Sino-Arab cooperation. The China-Arab States Expo， annually held in yinchuan， capital city of Ningxia Hui Autonomous Region， has served as an important platform for promoting economic and trade exchanges between the two sides.
Solid foundation
Liu Baolai， former Chinese Ambassador to the United Arab Emirates and Jordan， said that the CASCF has played a significant role in promoting Sino-Arab relations since its establishment 10 years ago. China’s “one belt and one road” strategy will now add new dimensions to Sino-Arab cooperation on the CASCF platform. In his speech， President xi called for joint efforts in building the Silk Road Economic Belt and the 21st Century Maritime Silk Road. He encouraged the two sides to pool wisdom and share ideas with each other to achieve positive results in their joint endeavor， so that the development of the “one belt and one road” will accommodate the interests and concerns of all parties.
“To implement the strategy， the two sides first should promote the establishment of a free trade area between China and the Gulf Cooperation Council. It will help advance the comprehensive development of Sino-Arab economic relations，” Liu said to Beijing Review.
Liu said that Gulf states now are advancing railway development. China is in a strong position to play a role in railway construction in the region； it can also help link regional railways to the broader Eurasian railway network. In addition， China can invest in the construction of several large petrochemical projects in Arab states to promote employment in the region.
Ghanim al-Shibli， head of the Arab League（AL） mission in China， said in an interview with xinhua that xi’s proposal on the “one belt and one road” had laid a solid foundation for deepening Sino-Arab relations and would serve as a new starting point for the CASCF.
“The AL will work with China to push forward the construction of the ‘one belt and one road’，” he added.