China lends more economic, security support to Middle East

BEIJING -- China has offered billions of U.S. dollars in loans and investment as well as political and security support to help the Middle East, during President Xi Jinping's first overseas visit of the year.

Xi unveiled a package of measures in his Cairo speech to the Arab League, including industrial and anti-terrorism cooperation to promote peace and development in the Arab world.

Growing interest in the middle east

Marred by decades of conflict, the Middle East has suffered another spate of turbulence and bloodshed since 2011, including civil wars in Syria and Yemen, the fight against the Islamic State (IS) and the great exodus of refugees.

Setting foot in the region for the first time as president, Xi called for "the utmost patience and flexibility" for dialogue, describing development as the solution to turmoil.

"China has a growing stake in energy, security and trade in the region, so it hopes for a stable and peaceful Middle East, otherwise our domestic development will be affected," said Li Guofu, an expert on Middle East affairs at the China Institute of International Studies.

Xi's speech defused speculation that China will fill the vacuum left by the strategic U.S. "pivot" from the Middle East to the Asia Pacific. He said China will not attempt to fill in the void in the region but promote peace talks and seek win-win cooperation through the Belt and Road Initiative.

Greater player in regional peace

Xi said China understands the aspirations of Palestine to integrate into the international community as a state. He announced 50 million yuan of assistance to the Palestinians and support for a solar power station in Palestine.

"China has grasped the root cause for the conflicts in the Middle East and is willing to contribute more to regional peace," said Hua Liming, former ambassador to Iran, United Arab Emirates (UAE) and the Netherlands.

Stressing political dialogue as solution to any crisis, Xi promised 230 million yuan of additional humanitarian assistance this year to the people of Syria, Jordan, Lebanon, Libya and Yemen.

"Since President Xi took office, China has worked to play a bigger and more effective role in regional and international affairs. China's diplomacy in the Middle East is no exception," said Tang Zhichao, a researcher with the Chinese Academy of Social Sciences.

Instead of being a bystander in Middle Eastern affairs, China has put great effort into the Palestinian issue, the Syrian crisis and the Iranian nuclear issue, Tang said.

Xi expressed opposition to linking terrorism with any specific ethnic group or religion, noting doing that will only create ethnic and religious tensions.

Xi also offered in his speech 300 million dollars for law enforcement cooperation, police training so as to help build up the abilities of the regional countries to maintain stability.

Promote middle east industrialization

China's competitive production capacity and the Middle East's human resources, when combined, will deliver more and better job opportunities for the region, Xi said.

In comparison with an aging Chinese population, over 60 percent of the population in the Middle East are young people, but many are without jobs, Tang said, believing "the two sides are highly complementary in terms of production capacity cooperation."

To promote the industrialization of the Middle East, Xi announced a 15 billion U.S. dollar special loan for production capacity cooperation and infrastructure construction, 10 billion U.S. dollars of commercial loan to support production capacity cooperation, and 10 billion U.S. dollars of concessional loans.

China will also launch a 20 billion U.S. dollars joint investment fund with the UAE and Qatar primarily to invest in traditional energy, infrastructure development and high-end manufacturing industries in the Middle East.

"This shows that China is not a so-called 'free rider' in the Middle East or just a buyer of oil, but is committed to helping the Middle East to develop." Tang said.

"Only when young people are able to live with dignity through development can hope prevail in their hearts. Only then will they voluntarily reject violence, extremist ideology and terrorism," Xi said.