China's bonhomie with UAE a way to consolidate Beijing's position in Middle East: Report
Mar 10, 2022
Beijing [China], March 10 : China's increasing bonhomie with UAE reflects Beijing's intentions to exploit the geographic and strategic position of the UAE to consolidate its position as a trade hub for the Middle East, said a media report.
The increase in bilateral relations between UAE and China can be attributed to Beijing viewing the UAE as a regional hub with great potential for Belt and Road Initiative (BRI) expansion, reported The Hong Kong Post.
The value of total Chinese investments and construction projects in Emirates reached USD 36.16 billion between 2005 and 2021, according to the media outlet that added that over 6,000 Chinese firms have invested in the Emirates in the fields of energy, ports, infrastructure, communications and finance.
With more than 60 per cent of China's trade in the Middle East advancing through UAE, Emirates is now the largest logistics hub for China, which views UAE as a leader in the region.
The UAE, along with providing Beijing with a gateway to the vast emerging market of the entire gulf region of around 100 million residents, has also become a safe haven for Chinese nationals with unaccounted wealth to avert Beijing's punitive actions.
Notably, Chinese nationals are investing in UAE's real estate to siphon off their unaccounted wealth and escape the Chinese government's legal actions.
Beijing intends to exploit the geographic and strategic position of the UAE, which could provide an essential link in China's grand economic strategy under the BRI consolidating its position as a trade hub for the Middle East and gateway to Africa, reported The Hong Kong Post.
However, this does not mean that BRI-related commercial engagement would be beneficial for the countries of the region. Though acknowledging that Beijing's global economic clout is huge, some Gulf officials describe the BRI's manifestation in the region as a mirage.
Moreover, China is seen with suspicion in the Gulf countries for its over-friendly approach as in other developing countries. Therefore, some Gulf officials and businessmen feel that developing bilateral partnerships with countries like India is better as they treat the partner countries on equal footing, reported the media outlet.
