China's economic ties with the Gulf States have undergone significant changes in recent years. Although historically there was little interaction between China and the Middle East, the past decade has seen a transformative shift with far-reaching implications for trade, business and politics.
According to the IMF, trade between China and the Gulf countries has doubled from approximately $90 billion to $180 billion between 2010 and 2021. Additionally, the Gulf region has become a significant recipient of China's Belt and Road Initiative (BRI) funding.
In this episode of The Sound of Economics, Giuseppe Porcaro sits down with Karen E. Young and Alicia García-Herrero to discuss the growing economic relations between China and the Gulf States. They mention the changing dynamics of trade, investment, currency as well as potential political alliance shifts in the region. They also talk about the changing dynamics of foreign policy with a stronger focus on energy security, leaving an opportunity of leverage for the Gulf States.
This episode is part of the ZhōngHuá Mundus series of The Sound of Economics.
ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe.