How China has invested in and influenced the Middle East
Since 2005, China has spent over $269 billion on investments and construction contracts across the Middle East. The top three recipients are Saudi Arabia ($82 billion), the UAE ($48 billion), and Iraq ($40 billion). This region holds strategic importance for China due to its vast energy resources and crucial trade routes.
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Trade between China and Middle Eastern countries has doubled since 2017, reaching $317 billion in 2024. Iran has also benefited, receiving $25 billion from Beijing. This robust economic engagement makes ongoing conflict disadvantageous for China as it threatens trade stability.
Despite these significant investments, Beijing is cautious about direct intervention to end conflicts, viewing regional instability as an opportunity to weaken the US economy and undermine its reputation as the global peacekeeper.
The blockade of the Strait of Hormuz, a critical transit route, could disrupt the flow of Arab oil to China, but the country has sufficient reserves purchased at low prices, allowing it to manage such risks.
Overall, China continues to strengthen its presence in the Middle East through investments and trade while maintaining strategic flexibility by avoiding direct military involvement. This approach reflects Beijing’s long-term goal to shift global power dynamics through economic influence and diplomacy.
Going forward, China is likely to keep expanding its influence in the region by increasing investments and monitoring geopolitical developments carefully, steering clear of direct conflict.
