News Letter

THE NEW SILK ROAD: CHINA’ ENERGY POLICYAND STRATEGY IN THE MENA REGION

SBE, Vol.20, No.1, 2017

ISSN 1818-1228

Qatar University

favourable position.”

China’s other move

has been to diversify its supply sources

by entrusting other oil-rich regions of the

world such as Sub-Saharan Africa and South

America. Although more costly, it could

provide an interesting alternative to unstable

oil markets and allow China for more control

over its energy investments.

VIII. Conclusion

China’s energy policy in the MENA follows

the agenda of the Beijing Consensus and has

mostly been prudent, yet far-reaching. As a

major growing economy, China needs concrete

energy strategy to fuel its continuous growth.

To ensure stable and steady oil supply, China

did not hesitate to diversify its sources in

MENA, sometimes even challenging economic

sanctions in the case of Sudan and Iran. But

China has also been a loyal partner to Saudi

Arabia and both states have found common

interests, strengthening their relationship

overtime. China promised to be a secure oil

importer and Saudi Arabia proved eager to

become a regular oil-exporter. The Beijing

Consensus has been especially appealing to

Saudi Arabia and Iran because both states

are increasingly displeased by the American

approach, which is often seen as too intrusive.

However, Sino-Saudi Arabia and Sino-Iranian

relations are not all that simple. Although Saudi

Arabia and Iran have proven to be perennial

rivals, their expectation regarding their

relationship with China is quite similar: they

both wish to escape from, or at least balance,

Western influence. Saudi Arabia has felt the

growing tensions with the United States on

the issue of global terror while Iran had been

under international sanctions until last year.

Similarly, Sudan was completely isolated after

94 Olimat Muhammad S., China and the

Middle East:

From Silk Road to Arab Spring,

Reprint Edition,

NewYork, Rougtledge, 2015. Pp. 46.

the American government forbade American

companies to invest in the area. In all cases,

China has been a convenient alternative:

Sudan developed its oil industry and obtained

arms from China, Saudi Arabia diversified its

exports by bringing in a new dependent client,

and Iran was able to export its oil during the

sanctions. Consequently, there has been a

gradual shift from the West and diversification

has been the primary focus of both suppliers

and demanders.

As a relatively ‘new’ player in the game, China

has had the opportunity to develop a prudent

strategy, which could succeed in ensuring

the country with a steady flow of oil without

destabilizing its relationship with other powers

in the international arena. While the United

States certainly disagrees with China’s equity

sharing policy, it is not yet fully convinced that

China represents a threat to its national interests

in the region

. In fact, although Washington

opted for alternate energy sources such as shale

gas and renewable energy, the United States

remains reliant on Middle Eastern oil supplies.

Accordingly, the United States still prioritizes

political stability in the Middle East for the

sake of its own national security. The United

States has historically been vigorously active

in protecting its energy security in the region,

resulting in plenty of military interventions in

the past. China has opted to maintain its non-

interference foreign policy strategy to date,

aware that the United States is as involved, but

the feasibility of maintaining this approach into

the future is questionable.

Furthermore, findings reveal that while

the United States is a significant player

in the oil arena, China’s rise could slowly

narrow the sphere of American influence in

favour of multilateral relationships between

developing states. However, China does not

95 Ibid. Pp. 62