Saudi Arabia

The diverging performance of China’s ports reflects a shift in trade for the world’s largest exporter. A growing proportion of shipments are destined for emerging markets such as countries in the Association of Southeast Asian Nations, the Middle East and Latin America, and an increasing share of exports consist of intermediate goods and capital items. Meanwhile, the shift in demand for Chinese exports is driving up prices for container shipping, squeezing margins for China’s small, private exporters.

Chinese businesses are flocking to Saudi Arabia, in what they see as the latter's "reform and opening up" period of opportunities. While bilateral trade and investment has increased, the Chinese also see Saudi Arabia as a gateway for the Middle East market, in emerging fields such as cloud services and artificial intelligence, and as a vibrant venture capitalist hub.

After more than a year since the war in Ukraine broke out, Chinese and Ukrainian presidents have finally spoken for the first time, and the outcome appears promising. Lianhe Zaobao associate editor Han Yong Hong notes that while sceptics believe that China could still be leaning towards the side of Russia, China has shown that it is taking its role as a mediator seriously and is prepared for it.

Even as Asia-Pacific countries want to focus on trade and economic cooperation, geopolitical tussling — especially between the US and China — has got in the way of such efforts. Former journalist and MP Goh Choon Kang says that at a time when arms dealers have apparently become peacemakers, countries of this region must stay focused and not be sidetracked and dictated by the powers.

After making headway with French President Emmanual Macron last week, China is set to further its economic cooperation with Brazil’s President Luiz Inácio Lula da Silva, notably with the decision to use their local currencies for cross-border trade instead of the US dollar. While there is still a long way to go for RMB internationalisation, China has certainly upped its game.

Academic Ma Haiyun explains how the Saudi-Iran detente is the experiment and application of China’s GSI with a focus on national and regime security, when Saudi Arabia, Iran and China have been facing increasing security challenges from the US and the West.

Beijing’s mediation of the historic rapprochement between Saudi Arabia and Iran is a sign that its much-vaunted Global Security Initiative (GSI) is working. The bigger challenge is bringing the GSI into action with respect to the war in Ukraine.

China’s success in mediating peace between long-term rivals Saudi Arabia and Iran has highlighted the major power’s role as a key player in security in the Middle East. While some international media take it as a sign of China’s ambitions, academic Fan Hongda feels that the peace deal has addressed a common need for all parties, and China has its own way of promoting peace in the region.

By forging Saudi Arabia-Iran rapprochement based on the message that economic development goes hand in hand with security stabilisation, China has just strengthened its image as an alternative to the West in the global south.