Riyadh recently hosted a pivotal meeting between China and the Gulf Cooperation Council (GCC), where senior officials reflected on the substantial advancements made since the establishment of the GCC-China Strategic Partnership in December 2022. The discussions primarily revolved around initiatives to bolster this collaboration further, particularly in light of ongoing geopolitical challenges.
Impact of the Iran Conflict
The meeting was significant as it was the first since the onset of the conflict with Iran in February. This situation heavily influenced the agenda, particularly regarding the closure of the Strait of Hormuz. The conflict has resulted in significant implications for China, which imports approximately 42% of its oil through this critical waterway. China has publicly condemned Iran’s military actions against GCC states, seeking dialogue with Iran at various levels to halt these attacks and re-establish maritime security. However, these efforts have yet to yield positive results.
China’s position at the United Nations Security Council has also become a point of contention. While it abstained from vetoing Security Council Resolution 2817 in March—which condemned Iranian aggression as a severe threat to international peace—it later sided with Russia to veto a draft resolution that aimed to protect freedom of navigation in the Strait of Hormuz. This decision has led to concerns about China’s commitment to supporting GCC initiatives for stability and security in the region.
The Need for Active Maritime Diplomacy
The current diplomatic stalemate has become a crucial topic in GCC-China discussions. There is an expectation that China must adopt a more active role in maritime diplomacy, especially considering its close ties with Iran and its advocacy for unhindered navigation in vital maritime routes such as the Strait of Hormuz and Bab Al-Mandab. Despite the challenges posed by the Iran conflict, GCC-China diplomatic efforts have seen successes, evident in their collaboration during the first GCC-China-ASEAN summit in Kuala Lumpur, highlighting the potential for strategic partnership beyond trade.
Historically, GCC-China relations have deep roots, with Kuwait being the first to establish ties in 1971 and Saudi Arabia following in 1991. Early interactions didn’t yield significant trade benefits until more recent years, but investments have only begun to rise slowly. As China actively cultivates relations with the GCC, it has grown increasingly important to the bloc, with trade figures climbing from a mere $2 billion in 1992 to an impressive $319 billion last year. This growth underscores China’s standing as the GCC’s leading trading partner, accounting for around 70% of its trade with the Arab region.
Aiming for Economic Integration
While trade relationships thrive, both parties aim to enhance investment flows through a nearly finalized free trade agreement. This deal is set to eliminate tariffs on many goods and will grant businesses greater access to each other’s markets. Despite the promising trade relations, investment levels remain low, with Chinese investments in the GCC hovering around 6% of total foreign direct investment in the region, while GCC investments in China are limited to about 4%. The anticipated free trade agreement holds the potential to change these dynamics and boost mutual economic interests.
The GCC-China Strategic Partnership, formally announced during President Xi Jinping’s visit to Saudi Arabia in 2022, has expanded beyond mere trade to include security, defense, environmental cooperation, and more. A recent breakthrough in restoring diplomatic ties between Saudi Arabia and Iran, brokered by China, indicates that the partnership is evolving and could play a more significant role in regional diplomacy moving forward.
In conclusion, the recent Riyadh meeting has highlighted both the opportunities and obstacles facing GCC-China relations. As officials continue to work on strategic recommendations for collaboration, their efforts will be closely monitored in anticipation of future summits. Strengthening these ties is essential not only for economic reasons but also for political stability and security in an ever-changing geopolitical landscape.