Nick Donaldson / Reuters
Nick Donaldson / Reuters
Nick Donaldson / Reuters
Nick Donaldson / Reuters


Weekend Essay: What is China's real position on the Israel-Gaza war?


Mohammed Alsudairi
Andrea Ghiselli
  • English
  • Arabic

February 16, 2024

A consistent theme that runs across much of the coverage surrounding China’s stance towards the Hamas attacks and the Israeli military campaign in Gaza is that it is read with the US, and broader great-power competition, in mind.

Over the past few months, one has been repeatedly bombarded by western opinion pieces and analyses claiming that China has supposedly “exploited” American alignment with Israel to enhance its reputation in the Arab world. Less-generous treatments go so far as to claim that China’s foreign policy stance is not only operating in ways diametrically opposed to US objectives and leadership in the Middle East, but also contributing to further de-stabilisation and turmoil.

As scholars who have long worked on China’s engagement with the Middle East, we have found that such narratives are often projections that discount not only the complex realities on the ground, but also Chinese and Middle Eastern perspectives. We do not dispute that Sino-American rivalry is an operative factor in this case and others, but we find that interpretations that solely focus on this dynamic tend to underplay two critical points.

Chinese Foreign Minister Wang Yi, far right, Saudi Arabia Foreign Minister Prince Faisal bin Farhan, third left, and Egyptian Foreign Minister Sameh Shoukry, second left, listen to a speech by Palestinian Foreign Minister Riyad Al Maliki in Beijing on November 20 last year. China has sent several high-level diplomats on tours of the Middle East since the Israel-Gaza war began. AP
Chinese Foreign Minister Wang Yi, far right, Saudi Arabia Foreign Minister Prince Faisal bin Farhan, third left, and Egyptian Foreign Minister Sameh Shoukry, second left, listen to a speech by Palestinian Foreign Minister Riyad Al Maliki in Beijing on November 20 last year. China has sent several high-level diplomats on tours of the Middle East since the Israel-Gaza war began. AP

The first is that part of whatever reputational success China may have garnered arises from Washington’s self-inflicted strategic blunders and incoherent policies on issues from Palestine to Yemen. The recent news about US President Joe Biden’s frustration with Israeli Prime Minister Benjamin Netanyahu’s actions show that even American policymakers are aware of that. The Gaza crisis is illustrative of this problem, as it is difficult to say that Chinese actions have been particularly different from the past. Indeed, China’s official response shows many continuities with its longstanding foreign policy position on the Palestine-Israel conflict, held at least since the Oslo Accords process took off in the 1990s, and re-packaged over the past decade in adjusted iterations of Chinese President Xi Jinping’s Four Point Plan.

Beijing has also been operating mostly within the parameters of its typical approach to crises far from its immediate peripheries. It has dispatched high-ranking diplomats – ranging from Middle East Special Envoy Zhai Jun and Communist Party International Department head Liu Jianchao, to Foreign Minister Wang Yi – on tours of the region, with all of them reiterating the above-mentioned official stance to their Middle Eastern counterparts

Notwithstanding much talk of a growing Chinese military presence in the Horn of Africa, Beijing has done little to actually deploy its coercive instruments in protecting Chinese maritime shipping along the Red Sea – despite the appeals of US National Security Advisor Jake Sullivan for them to join the anti-Houthi coalition. Its humanitarian aid has been minimal, as is true to form, and its stance on South Africa’s case against Israel at the International Court of Justice has been positive yet restrained in light of its own concerns about state sovereignty in relation to such institutions.

If Beijing appears to score so many important diplomatic points in this moment, it is because, regardless of its motivations, it is taking a stance that is not uniquely Chinese

This brings us to the second point: the lack of acknowledgment of the agency of countries other than the US or China. If Beijing appears to score so many important diplomatic points in this moment, it is because, regardless of its motivations, it is taking a stance that is not uniquely Chinese.

Chinese diplomats and policymakers have condemned violence against civilians, called for an immediate ceasefire plus the provision of humanitarian aid, as well as a revitalisation of a timetabled peace process based on a land-for-peace formula. Much of this is spelt out in a position paper issued by the Chinese Ministry of Foreign Affairs in November called Resolving the Palestinian-Israeli Conflict. This is a set of positions that is largely in accord with the global consensus or, at least, with those of a very large number of countries that simply do not agree with Israeli military actions and American support for them. In other words, China is not an extremist outlier.

At the same time, it is important to emphasise the role of countries in the Middle East, with their own goals and plans to achieve them. More or less substantial alignment with Beijing can be a means for countries to obtain things like technologies or investments that Washington cannot provide, or to communicate signals and put pressure on the US into offering more. The choice of Beijing as the first stop in a globe-spanning tour by the high-ranking delegation empowered by the extraordinary summit of the Organisation of Islamic Co-operation in Riyadh on November 11 could certainly be interpreted from that angle.

In other words, while China is not a passive bystander and has an interest in blunting American influence, the rise of its profile in the region is largely a product of broader regional and global trends. This is especially so in the Global South, as shown by the diplomatic row between Namibia and Germany in January over the latter’s support for Israel at the International Court of Justice.

The corollary of this is that what is happening in the region is not an ongoing power transition from a pax Americana (if indeed it could be called that) to a Chinese one. We do not claim to know what Middle Eastern and Chinese policymakers definitively want, but our own research does not suggest that China considers taking on the traditionally American role of regional hegemon as its preferred scenario. Nor does it indicate, for that matter, that this is what local actors necessarily want. Rather, we are witnessing a change in the structure of the regional order towards a more open and fluid one that will create challenges for all the parties involved, including China and the US, as they will navigate new and uncertain waters.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: December 07, 2024, 7:16 AM