Gains and losses of Sino-Arab economic cooperation
- By Zhang Jingwei
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E-mail China.org.cn, January 20, 2016
China's technology and extensive capacity help promote infrastructure construction and economic restructuring in the Arab world. Moreover, China has been able to provide significant capital resources for various parts of the region to improve their industrial system and optimize structure, a helpful step to revitalize local economies.
In addition, the Chinese yuan has become more and more popular in Arab countries. The Chinese central bank last December announced that the UAE had become a new pilot market for RMB qualified foreign institutional investors, with an investment quota of 50 billion yuan (US$7.6 billion).
This deal has set a good example to promote China's financial cooperation with Arab countries. With the further development of the "Belt and Road" Initiative, both sides will certainly achieve more fruits in trade and investment cooperation.
However, there are three unfavorable factors in achieving a deepening of China-Arab cooperation and fully realizing the "Belt and Road" initiative in that part of the world:
First is the growing regional unrest and terrorist attacks caused by the actions of the Islamic State.
Second is the geopolitical game being played out in Syria and the Middle East in general between the United States and Russia. Although China is a somewhat detached third party in this region, its stance and actions are often misunderstood by Russians and Westerners in general, the latter in particular. The U.S. once labeled China's participation in Iraq's post-war reconstruction as "free rider."
Third are the differences in culture and lifestyle which may affect economic and trade cooperation.
Zhang Jingwei a researcher of the Charhar Institute.
This article was written in Chinese and translated by Li Shen.
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.
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