China in the Middle East: October 2024

Israel Condemnation: The month began with Israeli ground incursions into southern Lebanon. The evening of September 30, Iran launched two hundred ballistic missiles at Israel. When asked about both incidents, the Chinese foreign ministry spokesperson condemned only Israel’s actions and cited its offensive in Gaza as the source for the region’s current turmoil. As Israeli air strikes continued in Lebanon’s south, China’s permanent representative to the United Nations, Fu Cong, condemned Israel at a UN Security Council meeting. Touching on Iran’s attack, Fu defended the Islamic Republic and remarked that Iran “concluded a series of military attacks on the military and security targets of Israel and sent correspondence to the Security Council explaining its position.”

On October 7, Fu said, in remarks to the General Assembly, “The question of Palestine is the biggest wound to human conscience.” The following day, some analysts took note of a slight change in rhetoric from China’s Ministry of Foreign Affairs as its spokesperson acknowledged for the first time the need to seriously consider “Israel’s reasonable security concerns.” Yet, Beijing’s seemingly one-off comment is unlikely to signify a change in policy. On October 9, Fu described Gaza as “an inferno on Earth.” Israeli air strikes that hit a UN Interim Force in a Lebanon observation tower elicited further condemnation.

Israel-Iran Tensions Flare: To reduce tensions between Israel and Iran, Chinese Foreign Minister Wang Yi placed calls to his Israeli and Iranian counterparts. With Israeli Foreign Minister Israel Katz, Wang recognized the need for the hostages to come home and pressed for a “full and permanent ceasefire in Gaza” and return to a two-state solution. The Chinese official warned his Israeli counterpart that both Jerusalem and Tehran should “act with caution to prevent the situation from falling into a vicious cycle.” Wang’s conversation with Iranian Foreign Minister Seyed Abbas Araghchi struck a far friendlier tone. The two sides discussed beneficial relations, and although China mentioned spillover from the war in Gaza, the Chinese foreign minister gave no real warning about escalations, nor did he make statements on political objectives. Wang reiterated China’s position as a “responsible major country” and said Beijing was “glad to see the Iranian government carry out mediation diplomacy, enhance understanding with all parties and improve relations with regional countries.”

After Israel’s retaliatory attack on Iran in late October, a Chinese foreign ministry spokesperson said, “China opposes violating the sovereignty and undermining the security of other countries and opposes the abuse of force.” Beijing also was a key supporter, alongside Algeria and Russia, of Iran’s request for an emergency UN Security Council meeting “to address [Israel’s] severe violation and unlawful actions and ensure accountability of this criminal regime.” During the meeting, Fu exclaimed, “Israel launched rounds of air strikes against several sites in Iran, causing damage to facilities and casualties on the Iranian side. China condemns acts that violate Iran’s sovereignty and territorial integrity and opposes acts of destruction that threaten regional peace and security. At present, the Iranian-Israeli relations and the situation of the region are on the edge. We are gravely concerned about the escalation caused by Israel’s actions, and urge Israel to effectively cease all provocative acts.”

Though China attempts to toe the line and present itself as a potential mediator with a neutral stance, at every turn it blames Israel for each escalation, failing to condemn any actions by terror groups in the region or by Iran.

Sinwar Killed: After Israeli forces killed Hamas leader Yahya Sinwar, China’s foreign ministry is reported to have reiterated that the priority remains an immediate cease-fire and secure aid corridors for Palestinians in Gaza. The state-run Global Times wrote, “The death of Sinwar is widely viewed as an opportunity for Israel to declare victory and wind down the war in the Gaza Strip,” while another state-run outlet headlined an article, “Sinwar killing seen as detrimental to truce.”

Caution in Lebanon: At the beginning of October, Chinese state media reported Beijing had evacuated two hundred of its citizens from Lebanon. China also warned its citizens in Iran to be cautious as the war possibly escalates. China’s aid agency announced it would provide medical assistance to Lebanon at the request of country’s government. On October 23, Beijing announced its embassy in Beirut would cease consular services.

Gaza Used to Deflect Xinjiang Criticism: In the middle of the month, the United States and fourteen other countries criticized Chinese human rights abuses in Xinjiang and Tibet. In response, Fu described the characterization as “lies to provoke confrontation,” and added, “The human rights situation that should gather the most attention at the Committee this year is undoubtedly that of Gaza. Australia and the US, among a few others, played down this living hell, while unleashing attacks and smears against the peaceful and tranquil Xinjiang.”

Saudi-Chinese Cultural Ties Blossom: After Saudi Arabia opened a Chinese literary exhibition in September, the Riyadh International Book Fair opened on October 1 with participation from Bayt El-Hekma, an organization dedicated to translating Chinese texts into Arabic. The group’s editorial manager claimed, “With every year, the demand for Chinese books increases.”

In early October, the Saudi culture minister held his first talks with the relatively new Chinese ambassador to the kingdom to discuss strengthening cultural relations. The day after the meeting, the Saudi Film Commission announced that, for the first time, Chinese theaters across three cities would host the weeklong series “Saudi Film Nights,” showcasing films from Riyadh, later in the month. On October 17, the Saudi minister of culture and his Chinese counterpart signed the program “Saudi-China Cultural Year 2025.” During the ceremony, Chinese and Saudi cultural institutions agreed to long-term artwork loans between museums and to establish joint studying and archaeological efforts.

At the beginning of the month, the Saudi Royal Commission for Jubail and Yanbu ended a monthlong marketing tour of China and Singapore. The commission’s travels attracted more than six hundred Chinese investors with thirty-three visits in twelve cities to food industry and logistic services companies and factories.

Saudi at BRICS: Although the Russian foreign ministry claims Saudi Arabia as a member of the intergovernmental group BRICS, Saudi leader Mohammed bin Salman was absent from the October summit in Kazan. Saudi Arabia’s Foreign Minister Faisal bin Farhan led the country’s participation as an “invited country,” not full-fledged member, as noted by the Saudi Press Agency.

Saudi Arabia Seeks Chinese Tourists: A few days later, Riyadh’s tourism minister, Ahmed Al-Khateeb, flew to Beijing to attract increased investment. The Saudi delegation met with representatives from China’s top companies, including Alibaba and Huawei, and the country’s tourism authorities. While in Beijing, the minister launched the Saudi Travel Festival with interactive experiences to promote Saudi attractions. In a statement on the visit, Al-Khateeb discussed the two countries similar cultures and said, “These similarities are at the heart of our relationship. As we continue to build bridges, we welcome friends from China and the world to experience our authentic Arab heritage.”

Making tourism between the two countries easier, the Saudi airline Saudia completed its first direct flight at the end of October from Dammam, in the country’s east, to Beijing. Dammam is now the third city in the kingdom, after Riyadh and Jeddah, to host direct flights to Beijing via Saudia. Weekly seating capacity from Saudi Arabia to China is now over three thousand seats with four flights to Beijing and six flights to Guangzhou.

New Deals With the Kingdom: After opening in Al-Kharj in September, Keeta—a subsidiary of China’s food delivery company Meituan—launched in Riyadh in October. To support its operation, the Chinese company will invest over $250 million in the Saudi capital.

On October 11, a Saudi-owned consulting firm signed two partnership deals with Beijing NAR International Consulting Company Limited, as Chinese investments in the kingdom reached over $35 billion. A readout from the Saudi firm said the collaboration aims to boost “industrial integration” between Saudi Arabia and China and will “provide specialized industrial consulting to Chinese companies looking to enter the Saudi market.”

Saudi EWPartners, an investment firm supported by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, announced it will develop a special economic zone in the King Salman International Airport to attract Chinese investment and trade. EWPartners is looking to raise $2 billion in initial development talks from Asian and Middle East sovereign wealth funds. The managing partner of the Saudi firm, Cliff Chau, tied the development to China’s slowing economy: “The slowdown in Chinese growth means more upcoming and mature Chinese companies are looking at Saudi Arabia for growth. We have received so many calls from businesses in mainland China that want to get up and running in Saudi Arabia.” Early analysis estimates the economic zone will attract three thousand wholesale and retail stores and over two hundred industrial manufacturers from China and Asia. The zone will support the kingdom’s strategy to make the King Salman Airport one of the largest in the world with Saudi Arabia as a global logistics hub.

In energy news, according to Bloomberg, Saudi Aramco, Saudi Arabia’s state-owned energy giant and the world’s fourth-largest company, decided to scrap plans for a domestic refinery in favor of increased investments in Asia. The firm could close down three more projects as it seeks to expand its presence in Asia with a series of deals in China to secure long-term access to the Chinese market.

Chinese company JinkoSolar expanded its dominance over the Saudi solar market in the middle of October with a new deal to provide Saudi ACWA Power with new modules for two solar projects in the Gulf country. The company claims its market share exceeds 70 percent in Saudi Arabia and over 50 percent in the Middle East more generally. Around the same time, a Chinese corporation and Saudi firm announced a new joint venture: Battery Energy Storage System. The new company will establish energy storage manufacturing facilities in the kingdom.

Boosting Financial Ties: China has commenced a trial for cross-border payments with Saudi Arabia and the United Arab Emirates (UAE) using central bank digital currencies to find alternative uses for the digital currency. Rather than use the SWIFT platform, which can take up to a week for currency (often in dollars) to transfer, this option allows transfers to be done in seconds. “Low-cost transfers using [central bank digital currencies] could help promote non-dollar transactions and reduce China’s dependence on the dollar,” as explained in Arab News Japan.

Bank Albilad, a Saudi investment firm, raised $1.3 billion and announced the launch of the Gulf country’s largest exchange-traded fund (ETF) to track Chinese stocks listed in Hong Kong. According to Bloomberg, the fund will be larger than the market value of all ETFs on Riyadh’s stock exchange combined, making it the largest in the Middle East. Analysts associate the enthusiasm around the fund with an 18 percent jump in a Hong Kong bench index after the Federal Reserve lowered interest rates and China announced stimulus packages in September.

China’s National Day: In a note to his Chinese counterpart to celebrate China’s National Day, Iranian President Masoud Pezeshkian hailed a “new chapter of comprehensive strategic relations” between China and Iran, adding, “I declare my desire to cooperate with your Excellency in developing comprehensive relations between Iran and China.”

Fishing Together: At the beginning of October, a delegation of Iranian businesspeople, experts, and government officials traveled to China and met with Beijing officials to increase cooperation in the fishing industry. Tehran’s delegation visited Qingdao and Zhanjiang, two major port cities. The group then went to Guangzhou, where they saw a seafood production exhibition and held a meeting with the Guangzhou Aquaculture Union, made up of thirteen Chinese companies that import fishery products.

Gentle Reminders: The Tehran Times piece on the fishery visit mentioned that the group met Chinese Ministry of Agriculture and Rural Affairs officials and discussed the twenty-five-year agreement between Iran and China, which promised $400 billion in foreign direct investment from China into Iran. It is not the first time since this monthly “China in the Middle East” series began that Iranian outlets have mentioned a discussion of that same agreement when Beijing and Tehran’s officials met. However, Chinese readouts of the same meetings do not include it. That could suggest that the Iranians are unhappy with the lack of progress on the deal and are pushing the Chinese on the issue, while Beijing’s officials would prefer not to acknowledge it.

Emphasizing the point, Iran’s finance minister, Abdolnaser Hemmati, met with the Chinese ambassador to Tehran, Cong Peiwu, in October to “emphasize the importance of implementing the memorandums of understanding (MOUs) signed between Iran and China.” As reported in Iranian state media, Hemmati sought to follow up on negotiations from last month’s BRICS meeting in Uzbekistan of economy ministers, “stressing the importance of implementing the MOUs between the two countries.” The Iranian minister reminded his Chinese counterpart of the two countries’ existing joint economic committee as a “suitable platform” to negotiate. Throughout the piece, which discusses that meeting, the Tehran Times continuously brings up the importance of previously signed bilateral MOUs: “In addition to the issues related to the cooperation of the two countries . . . the two sides discussed the most important issues related to bilateral relations, especially the follow-up of the results of previous agreements.” The state media source then discussed the thirty-six MOUs that have been signed between the two countries since the twenty-five-year agreement was signed in March 2021. Tehran seems to be frustrated at the lack of progress.

Friends: October witnesses the fifteenth annual meeting of the Iran-China Friendship Association in Beijing. The meeting concluded with a new MOU to increase cooperation between the respective associations.

Cultural Exchanges: From mid-October until mid-November, the Iranian Malek National Library and Museum showcased selected works of Chinese art and culture on loan from China. Titled “Endless Clouds of the Silk Road,” the exhibition displays “centuries of cultural interaction along the ancient Silk Road” between Iran and China. During the opening ceremony, speakers from both countries emphasized their civilizational past and the historical relationship between the two countries as the foundation for strong cultural relations today.

Bilateral Meeting at BRICS: Chinese President Xi Jinping and his Iranian counterpart, Masoud Pezeshkian, met on the sidelines of the October BRICS summit in Kazan. According to a Chinese readout, Xi relayed that “no matter how the international and regional situation changes, China will unswervingly develop friendly cooperation with Iran.” Using a now common Chinese Communist Party phrase, Xi told Pezeshkian, “The strategic significance of China-Iran relations has become more prominent as transformations of the world unseen in a century are unfolding at faster pace.” During their meeting, Xi reiterated Chinese support of Iran defending its sovereignty in the face of Israel’s retaliatory strikes.

Forty Years of Diplomatic Relations: Emirati and Chinese institutions in Dubai organized the Dubai Forum in late October to celebrate forty years of diplomatic relations between China and the UAE. According to Emirates News Agency, the forum brought together “leaders and changemakers from diverse sectors to explore new pathways for strengthening engagement and cooperation between the two countries.” Sessions focused on transformations in the energy and media sectors, while China’s ambassador to the UAE, the Emirati undersecretary of economy, and the CEO of Dubai Chambers spoke about the strong economic ties between the two countries. Similar to the mid-autumn festival discussed last month, the Burj Khalifa displayed China’s flag for the East Asian country’s National Day.

UAE Investments: Coinciding with China’s National Day, Ajman city authorities released an economic report that showed Chinese investments in the Emirate of Ajman had increased 173 percent over three years—mostly in trade, digital services, and hospitality. Ajman now has 613 Chinese investors, a 36 percent increase over three years. The head of the emirate’s tourism department traveled to Beijing in October to attract investment and sign agreements to boost tourism.

New Deals With the UAE: At the beginning of the month, Chinese automobile company NIO signed a deal with Abu Dhabi–based investor CYVN Holdings to build a research-and-development center in the Emirati city. The Chinese care manufacturer debuted an electric SUV in the UAE and plans for the country to serve as its launch market for the region. A few days later, the UAE-based developer Luxe Developers announced that China State Construction Engineering Corporation would be the main contractor for its $400 million, 79,000 square-meter, 206-unit development on Al Marjan Island in the Emirate of Ras Al Khaimah. NIO could face competition, however, from another Chinese carmaker that entered the Emirati market in October: Dongfeng Motor Corporation. The Chinese state-owned company opened its first showroom in Dubai on October 13 and introduced four flagship models as it seeks to expand its presence in the Middle East.

In early October, it was announced that the Chinese management committee of the Yangpu Economic Development Zone and Hainan Harbor & Shipping Holding Co., Ltd., signed an MOU with two Emirati port companies to increase maritime trade relations between the Arab country and the Chinese province.

AW Shipping, a joint venture between subsidiaries of Emirati and Chinese state-owned companies, has awarded $250 million in contracts for Chinese Jiangnan Shipyard to build two very large ammonia carriers. Those contracts were signed during the opening of the shipyard’s first Middle East office.

At the end of the month, China’s National Innovation Center par Excellence signed an MOU with Dubai Future Foundation to increase collaboration in technology innovation. Emirates News Agency reported that the two sides will “explore avenues for cooperation in knowledge transfer, attracting and empowering talent, retaining competencies, and facilitating mutual market access.”

Budding Ties With Ras Al Khaimah: Building on the visit of the leader of Ras Al Khaimah’s September visit to China the emirate’s economic zone signed a strategic cooperation agreement with China Pilot Free Trade Zone and an MOU with Tianjin Port Free Trade Zone. As announced by Emirates News Agency, “The signing marks the start of joint efforts in facilitating trade, investment opportunities, and industry development between the two regions.” However, no specific measures of collaboration were announced.

MBZ and Xi Meet at BRICS: On the sidelines of the October BRICS summit held in Kazan, Xi and Emirati president Mohammad Bin Zayed discussed a range of issues and the possibility of defense and energy collaboration.

Uyghur Protests in Turkey: On the first day of the month—also China’s National Day—a group of Turkey’s Uyghurs held a protest at a Chinese consulate in a district north of Istanbul to condemn the Uyghur genocide in Xinjiang. As Turkey’s relationship with China has warmed in recent years, its criticism of China’s actions in Xinjiang has softened.

More Car Deals: In an interview with Reuters at the beginning of the month, a Turkish official said that Turkey and Chinese car manufacturer Chery are in the last stages of talks for the Chinese company to build a new factory in the northern city of Samsun.

Beijing Initiates WTO Dispute With Ankara: Despite growing ties and increased investments between Turkey and Chinese automobile manufactures, tensions between the two countries rose at the beginning of the month as the Chinese Ministry of Commerce launched a complaint against the World Trade Organization (WTO) and requested consultation over Turkey’s recent tariffs and import license measures. In June, Turkey decided it would impose a 40 percent additional tariff to cars imported from China—with a minimum penalty of $7,000 per vehicle. The spokesperson for the ministry warned, “China will take all available means to safeguard the legitimate rights and interests of domestic industries,” as reported by Chinese state media.

Following the WTO complaint, Turkey announced antidumping duties on a range of steel imports with the highest penalties targeting China. Whereas the new tariffs on steel imports from India, Japan, and Russia ranged from 6 to 9 percent, those on Chinese steel range from 15 to 43 percent.

New Mining Deal With Turkey: In the face of burgeoning trade disputes, Turkey and China saw some new deals in October. Alparslan Bayraktar, the Turkish energy and natural resources minister, visited China to attend the twenty-sixth China Mining Conference and Exhibition in northern China. On the sidelines, he met with his Chinese counterpart and signed an MOU to increase cooperation in critical mineral mining. Turkey hopes to attract Chinese investors and “establish an industrial facility that will purify 570,000 tons of rare earth elements annually” after the country discovered the world’s second-largest rare-earth element reserve in central Anatolia in 2022.

Erdogan at BRICS: Turkish President Recep Tayyip Erdogan attended the BRICS summit in late October. As analysts have noted, his participation highlights the belief in Ankara that the NATO member needs to balance between competing powers as geopolitical tensions rise. Read more about the emerging bloc in this CFR Backgrounder.

Qatar Celebrates the Relationship: On China’s National Day, Beijing’s Ambassador to Doha Cao Xiaolin claimed a “golden decade” in the relationship between China and Qatar and, as China continues to do, appealed to the civilizational past of the two countries: “Over 1,300 years ago, Chinese merchant ships, laden with porcelain and silk, embarked from Guangzhou and navigated the renowned Maritime Silk Road,” he said, according to a Gulf Times article. “They sailed the vast ocean and reached the Arabian Peninsula, forging a close relationship between China and Qatar.”

Parliamentary Meetings: China’s ambassador to Qatar met with the country’s deputy speaker of Doha’s legislative body, the Shura. The gulf country’s state media reported that the two discussed increased parliamentary cooperation between the two countries as well as “a number of topics of common concern.”

New Deals With Qatar: Reuters reported in early October that Qatar Holding, an investment house owned entirely by the Doha’s sovereign wealth fund, has joined a group of investors that aim to take private ESR Group, a Hong Kong–listed real estate fund manager.

In the middle of the month, Hengtong Submarine Power Cable—a subsidiary of Hengtong Group, China’s largest power and fiber optic cable manufacturer—announced that it will fulfill a submarine fiber optic cable system order for a new project at Qatar’s largest offshore oil field, Al Shaheen.