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2023 | OriginalPaper | Chapter

China’s Hedged Economic Diplomacy in Saudi Arabia and Iran: A Strategy of Risk Mitigation

Author : Jeremy Garlick

Published in: China’s Engagement with the Islamic Nations

Publisher: Springer Nature Switzerland

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Abstract

The Persian Gulf is a key area for the regional implementation of China’s Belt and Road Initiative (BRI) in the Middle East. Persian Gulf countries, in particular Iran and Saudi Arabia, are major suppliers of energy to China. Geographically, they are also located at the nexus of the maritime trade route between Asia and Europe. Building strategic partnerships with Saudi Arabia (in 2008) and Iran (in March 2021) is thus a key part of Beijing’s strategy under Xi Jinping to use the BRI to enhance China’s comprehensive economic and energy security. From the point of view of Iran and Saudi Arabia, both need China as an economic partner: Iran because it has few other allies and is ostracised by the US and other Western nations; and Saudi Arabia because China is the largest importer of Saudi oil and is a significant source of investment in the Saudi Vision 2030 projects. At the same time, Shia Iran and Sunni Saudi Arabia are bitter regional rivals engaged in a struggle for regional hegemony. Accordingly, China’s Persian Gulf strategy of economic diplomacy through BRI investments and economic partnerships can, therefore, be categorised as strategic hedging: cultivating both partners without alienating or over-committing to either.

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previous chapter Iran’s Pragmatic Approach in Accommodating China’s Belt and Road Initiative: A Determinant for Future Closer Bilateral Cooperation
next chapter Sino-Gulf Cooperation Council Partnership in a New Era of Great Power Competition
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Metadata
Title
China’s Hedged Economic Diplomacy in Saudi Arabia and Iran: A Strategy of Risk Mitigation
Author
Jeremy Garlick
Copyright Year
2023
Book
China’s Engagement with the Islamic Nations

Print ISBN: 978-3-031-31041-6

Electronic ISBN: 978-3-031-31042-3

Copyright Year: 2023

DOI
https://doi.org/10.1007/978-3-031-31042-3_7

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