IN FOCUS
By Dincy Adlakha

Beijing and the Gulf Cooperation Council: Addressing four core Chinese interests

On 11 January, the General-Secretary of the Gulf Cooperation Council Nayef bin Falah Al-Hajraf visited China along with the foreign ministers of Saudi Arabia, Kuwait, Oman and Bahrain. The delegation met the Chinese State Councilor and Foreign Minister Wang Yi in Wuxi, Jiangsu province of east China. 

In the meeting, both parties stressed the growth of relations and mutual trust in recent years. They collectively emphasized regional peace, stability and security from unforeseen challenges. GCC appreciated China’s important influence in the international community and its positive role in the region. China indicated that a Free Trade Agreement is potentially expected. 

The following note looks at the main Chinese interests in the GCC
1. Energy imports
Oil and gas imports are the primary Chinese interests in the GCC countries. China overtook the US as the largest consumer of energy in 2017. Ever since, China’s economy has been driven by fossil fuels. China’s energy demands make up 25 percent of the world’s total energy requirements. In 2017, 27 percent of the oil exported by the GCC went to China; in 2018, 44 percent of China’s crude oil imports came from the GCC.

Energy has been the first pillar of China-GCC cooperation since 2013 when China signed multiple agreements on oil imports with most GCC countries.

2. Geostrategic links
China’s Belt and Road Initiative (BRI) is the second major interest for Beijing in the GCC. The BRI has allowed China to forge a diversified relationship with the GCC rather than one dependent solely on oil. China has signed over 12 cooperation agreements with Saudi Arabia, built a “silk city” or mega hub in Arabian Gulf with Kuwait, signed 13 MoUs with UAE and constructed important Duqm port under the maritime silk route framework in Oman. China recognized the strategic importance of the region and utilized it effectively, especially under the leadership of President Xi Jinping.

3. Geoeconomic jigsaw
China has been quick to recognize the geo-economic potential of the region. Arising a collective Asian spirit, it has pushed the Asian Infrastructure Investment Bank to venture into GCC countries. Multiple infrastructure and construction projects have been invested by China in the region. Construction of plants, ports and sponsoring other investment funds is characteristic of China-GCC links. 

China is the GCC’s largest trading partner and President Xi Jinping is fairing smoothly on his promise of 2014 to double the trade by 2023. The potential Free Trade Agreement also works on economic connections.

4. Friendship with Islamic countries
China also has an interest in maintaining good relations with Islamic countries (including Turkey and the GCC) to avoid international condemnation over the contested Uyghur issue in Xinjiang. 

China has no interest in uprooting the US from the Arabian Peninsula. It also does not want to be dragged into faith-based conflicts and proxy wars. China maintains cordial relations with the GCC for its strategic and economic interests.

References:
“Chinese FM meets with GCC secretary-general,” Xinhua Net, 12 January 2022
“Gulf ministers visit China to discuss strengthening energy ties,” Al Jazeera, 10 January 2022
Andrew K P Leung, “China's Economic Interests in the GCC: Economic Gains over Politics,” Politics Today, 17 February 2021
Noura Saleh Almujeem, “GCCcountries’ geoeconomic significance to China’s geopolitical ends,” Review of Economic and Political Science, Vol. 6 No. 4, 14 July 2022

IN BRIEF
By Avishka Ashok and Keerthana Nambiar

INTERNAL
Provincial authorities reward fishermen for capturing foreign spy devices
On 19 January, the national security authorities from East Jiangsu Province rewarded 11 fishermen and five related personnel for capturing foreign spy devices in the Chinese territorial sea. The fishermen crew had found ten suspicious devices while conducting their activities. Expert analysis found that the devices were manufactured in foreign countries and were capable of underwater investigation, identification and theft. The authorities commended the fishermen for being aware about maritime security threats. The Chinese public also took to social media platforms and praised the crew for their obligatory action. (Yu Xi, “Fishermen get huge reward for capturing foreign spy devices,” Global Times, 19 January 2022)

PLA military command in Xinjiang receives new defense mechanisms
On 18 January, the Chinese People’s Liberation Army issued a new batch of air defense missiles, artillery and rocket launch systems to the military command force in Xinjiang. The new editions will enhance the troops’ emergency response capacities and prepare them for complicated situations. The regiment held a ceremony to mark the new additions to the arsenal. Many of the missile systems were showcased in the public military parade on National Day in 2019. (Liu Xuanzun, “PLA Xinjiang Military Command gets new air defense missiles, artillery, rocket launch systems,” Global Times, 18 January 2022)

President Xi calls political resolve against party corruption 
On 18 January, the Communist Party of China held the 6th plenary session of the 19th central Commission for Discipline Inspection. The meeting was attended by President Xi Jinping who called for thorough and unwavering efforts in practicing strict party governance and zero tolerance towards corruption within the party. President Xi said: “Certain unhealthy tendencies that hadn't been curbed for a long time have been reined in, many problems that had long plagued us have been remedied, and serious potential dangers in the Party, the country and the military have been rooted out.” He urged the party members to actively fight corruption and work towards the strategic goal of “not daring to, not being able to and not wanting to be corrupt.” (“Top anti-corruption group meeting stresses zero tolerance for graft,” Global Times, 19 January 2022)

State Council releases plan to improve internal transportation system.
On 18 January, Xinhua Net reported that the State Council had released its plan on improving the transportation network in the country. The plan is a part of the 14th Five-Year Plan period (2021-2025). The document revealed that the country plans to stretch the high-speed railway to 50,000 kilometers by 2025. As of 2020, the total length is 38,000 kilometers. The transportation rail routes will aim to connect 95 percent of the cities with a population higher than 5,00,000. Other than the high-speed railways, China also aims to achieve 1,65,000 kilometers of railway lines by 2025. The buses is the cities are set to move to a greener system with 72 percent of the vehicles running on new energy. (“China unveils plan to improve transportation networks by 2025,” Xinhua Net, 18 January 2022)

Office of Central Rural Work reveals 31.45 million were employed in 2021
On 18 January, the Deputy Chief of the Office of the Central Rural Work Leading Group and Head of the National Rural Revitalization Administration addressed a video conference and reported that over 31.45 million people had found a way out of poverty and were employed in 2021. The officials also pledged to continue working towards poverty eradication in the coming years. The state will improve labour service cooperation between the cities and counties and develop public welfare jobs in the rural areas. (“China pledges to further support employment of people emerging from poverty,” Xinhua Net, 18 January 2022)

TECHNOLOGY
Satellites detect methane clouds over China’s coal mines
On 19 January, The Straits Times reported that satellites from geoanalytics firm Kayross SAS have detected strong methane clouds over China’s coal producing region from the north-eastern province of Shanxi. These mines produce more than 10 percent of the world’s collective coal. The presence of these clouds is a lesser known climate change impact and is extremely harmful for the environment. Methane emissions are steady and continuous when released from coal which further complicates the situation. (“Powerful clouds of methane spotted over China's coal mines,” The Straits Times, 19 January 2022)

INTERNATIONAL
China’s ambassador to Tonga relays safety of all Chinese citizens
On 19 January, China’s ambassador to Tonga stated that all the Chinese citizens in the island state are safe. The country faced a major tsunami after the underwater volcanic eruption. Cao Xiaolin, China’s ambassador informed that the calamity has contaminated the water supply of the entire country and people are struggling for clean water. The crops have also been destroyed. Over a thousand Chinese nationals reside in Tonga and are termed safe by the embassy. The Chinese embassy has started an emergency response plan and is dedicated to rebuilding the destroyed communication lines within the country. (“Tonga’s water supply contaminated by volcanic ash and crops destroyed; all Chinese safe: ambassador,” Global Times, 19 January 2022)

Foreign Ministry Spokesperson cautions US from preventing the normal exchanges between the countries
On 18 January, the Foreign Ministry Spokesperson Zhao Lijian address a press briefing and urged the US to not compromise the normal exchanges that were taking place between the countries. The statement was made after the US Judiciary decided to drop the case against Cheng Gang, a Massachussets Institute of Technology professor who was arrested in January 2021 for his involvement with the Chinese government. He was accused of working for the Chinese government while also receiving a salary from the US government for his work on Nanotechnology. Zhao said: “The US should stop disrupting and undermining the normal exchanges and cooperation between China and the US in science, technology and culture.” (“FM urges US to stop using ‘China Initiative’ tool to suppress China,” Global Times, 18 January 2022)