Balancing power and prosperity: China’s geo-economic engagement with the Gulf Cooperation Council

Abstract

Since the 1990s, China’s engagement beyond its geographical periphery, especially with Asian regions, has grown exceptionally, which is best evident in the Gulf sub-region and Western Asian nations. Indeed, energy-based interactions were the first to be established with Gulf Arab countries, and today, more than two decades after the Cold War, such relationships have evolved into tighter partnerships and engagement networks. Thus, in the last decade, China has increased its economic and political footprint in the Gulf region, as it has become one of the region’s largest external investors and trade partners. In its relations with the Gulf Cooperation Council (GCC) states, China faces varying challenges as each country pursues its interests, making the Chinese strategy in the region more complex. The Gulf countries have had to balance their relationship between the US as a security guarantor and China as an important economic partner. They strive to maximize their political and economic interests in the process. The main contention of this paper is that the GCC should not be viewed as a homogenous entity and that the Belt and Road Initiative (BRI) is a flexible approach designed to bolster China’s economic objectives in each Gulf country. Our research scrutinizes China’s geo-economic strategy and geopolitical aims about the Gulf States’ aspirations to maximize their economic ties with China. Against this background, this paper discusses the political and economic relationships between the People’s Republic of China and the Gulf Arab states: Bahrain, Kuwait, Qatar, Oman, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE).