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Eyes on the China-Arab summit

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The official state agency of Saudi Arabia (SPA) announced that Chinese President Xi Jinping would visit the country on December 7-9.

The purpose of the visit was defined as “strengthening the historical relations and distinguished strategic partnership that connects Saudi Arabia and China.” It was also noted that King Salman and Xi Jinping would preside over the Saudi Arabian-Chinese summit, which Crown Prince Mohammed bin Salman will attend.

It was reported that the Chinese President would also attend the “Riyadh-GCC-China Summit” and the “Riyadh-China Arab Cooperation and Development Summit” with the member states of the Gulf Cooperation Council (GCC).

Both summits, which will be attended by heads of state and leaders from the Gulf and Arab regions, will discuss ways to advance the relations in all fields and various aspects of economic cooperation.

Relations with Washington are strained

 Xi’s visit coincides with growing tensions between Saudi Arabia and the United States, particularly over energy policy.

Despite Riyadh’s refusal to condemn Russia for Ukraine intervention despite Western pressure and US President Biden’s demand to increase oil production, OPEC+’s decision to cut output by two million barrels a day in October brought relations to a breaking point.

The Biden-Harris Administration accuses Saudi Arabia of supporting Russia in the Ukraine war.

Experts believe the tension between the Biden administration and OPEC+, especially the Gulf countries, will increase even more.

Head of the Riyadh-based Gulf Research Center, Saudi analyst Abdulaziz Sager stated that Arab states have alternatives to their Western allies, emphasizing that their relations are primarily based on economic interests.

In this case, the visit of China, Riyadh’s largest trading partner, draws attention.

The developing relations between China and Saudi Arabia in trade, security, and technology have alarmed the United States. The allegations that Saudi Arabia could agree with China to trade oil in the renminbi have increased the uneasiness. Saudi Arabia is China’s largest supplier of crude oil.

It is stated that the developing Chinese-Saudi Arabian relations have risks of exacerbating the rift between Washington and Riyadh.

China’s Belt and Road Initiative and Saudi Vision 2030

The Ambassador of Saudi Arabia to China also wrote an article on bilateral relations before Xi Jinping’s visit.

In the article published in China Daily, relations between Saudi Arabia and China are described as “an upsurge based on the development of trust, mutual respect, common interests and cooperation since 1990”.

While it is emphasized that bilateral relations are based on mutual respect, understanding, and cooperation, it is also stated that they are compatible with the developments taking place in the world.

As it is said that bilateral relations have been growing and accelerating since Xi Jinping visited Saudi Arabia in 2016, attention is drawn to the harmony between Riyadh’s 2030 Vision and China’s Belt and Road Initiative.

The article emphasizes that the most crucial element in bilateral relations is economic: “Saudi Arabia has become China’s first trade partner in the Middle East and North Africa region. Similarly, Saudi Arabia is the first among the countries that export oil to China, while China is Saudi Arabia’s first trading partner.”

According to the latest economic data, the trade capacity between Saudi Arabia and China increased by 37.4 percent in the first 10 months of 2022 compared to the same period of the previous year, exceeding $97 billion. In addition, in this period, Saudi Arabia’s exports to China have increased by 45 percent to 66 billion dollars, while China’s exports to Saudi Arabia increased by 23.3 percent to 30 billion dollars.

DIPLOMACY

Brazil-Britain relations strengthen amid global challenges

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As Donald Trump’s second term looms and European allies like France and Germany grapple with political instability, the United Kingdom is seeking new allies on the global stage, POLITICO reports.

In this context, Keir Starmer’s administration has been cultivating strong ties with Brazil and the Lula government. Since Starmer assumed office as Prime Minister in July, at least 12 British ministers have traveled to Brazil, signaling a deepening partnership.

This intensified engagement coincides with Brazil hosting this year’s G20 summit, but it also highlights shared priorities in addressing the global climate crisis. Since November, the UK and Brazil have collaborated on launching a multilateral clean energy agreement, setting ambitious new climate targets, and laying groundwork for the next major United Nations Climate Summit in Belém, Brazil, in 2025.

According to Robin Niblett, former director general of the British think tank Chatham House, these are precisely the types of “coalitions of the willing” that leaders with a “green conscience” must forge amid global uncertainty.

However, bilateral ties are not without challenges. Disagreements over Russia and Ukraine represent a major foreign policy hurdle for both nations. To strengthen their alliance, Brazilian President Luiz Inácio Lula da Silva has invited Starmer for another visit next year, aiming to “map opportunities and economic areas for collaboration,” according to an official Brazilian statement.

The relationship between the two leaders extends beyond formal diplomacy. According to Antonio Patriota, Brazil’s ambassador to London, their shared enthusiasm for football has added a personal touch to diplomatic meetings. In fact, the initial moments of their bilateral discussions at the G20 summit were dedicated to football, POLITICO noted.

Foreign Secretary David Lammy also underscored the importance of climate issues in British foreign policy during his visit to Brazil last summer, preceding the general election. Starmer, then opposition leader, first met Lula at COP28 in 2023. This meeting laid the groundwork for the Clean Power Alliance energy agreement, which now includes 11 nations and the African Union. The alliance has pledged to triple renewable energy output by 2030, according to a British government official.

As POLITICO reports, the United Kingdom’s pivot to Brazil also reflects its need for dependable allies post-Brexit, particularly as the United States becomes less reliable under Trump. The new U.S. energy secretary, businessman Chris Wright, has accused the UK of “impoverishing people” with its green policies, further complicating transatlantic relations.

In Brazil, Starmer sees an ally capable of bridging the divide between developed nations, such as those in the G7 and NATO, and developing nations within the G20 and beyond. A UK government official described the partnership as exemplifying “cooperation between the Global North and South.”

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DIPLOMACY

China’s diplomatic influence in the Middle East at risk

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Beijing’s brokering of a historic peace deal between Iran and Saudi Arabia last year marked a significant shift in China’s engagement with the Middle East. The agreement was seen as a landmark achievement, positioning China as a mediator in one of the world’s most volatile regions.

For Tehran, facing economic and geopolitical pressure from the Biden administration, the deal was a diplomatic breakthrough. It also offered a chance to reduce isolation with Beijing’s support.

However, the recent overthrow of Bashar al-Assad in Syria and the setbacks faced by Hamas and Hezbollah in their conflict with Israel have fragmented Iran’s regional influence. These developments, coupled with growing threats from Israel, pose significant challenges to Tehran’s strategic position.

Experts suggest that the return of a hawkish U.S. administration under Donald Trump could strengthen the China-Iran alliance. Shared pressures may push both nations toward closer cooperation, reshaping the region’s diplomatic dynamics.

Chinese analysts caution, however, that Beijing’s ability to sustain its mediation role may be at risk. Rising tensions between Tehran and other regional powers could jeopardize the peace China’s diplomacy has fostered. Such conflicts would not only test Beijing’s influence but also challenge its long-term strategic interests in the Middle East.

Fan Hongda, a professor at the Institute of Middle East Studies at Shanghai University of International Studies, notes that U.S. pressure on Iran is unlikely to wane. “Coupled with Israel’s strikes and the destruction of Iranian-backed forces such as Hamas and Hezbollah last year, this will compel Iran to favor closer cooperation with other powers, including China and Russia,” Fan remarked.

Iran’s economic woes date back to the Trump administration’s withdrawal from the Iran nuclear deal and the imposition of stricter sanctions under the “maximum pressure” campaign. These sanctions continue to hinder Tehran’s economy, influencing its strategic partnerships and regional policies.

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DIPLOMACY

Biden administration investigates Chinese semiconductors

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The Biden administration announced a new trade investigation on Monday, focusing on Chinese-manufactured “old generation” semiconductors. This move could lead to additional U.S. tariffs on chips that power everyday products such as cars, washing machines, and telecom equipment.

The Section 301 investigation, initiated just four weeks before President-elect Donald Trump is set to take office on January 20, will be handed over to the incoming administration for completion. This investigation may serve as a foundation for Trump’s proposed 60% tariffs on Chinese imports.

In his final weeks, outgoing President Joe Biden imposed a 50% tariff on Chinese semiconductors, effective January 1. Additionally, his administration implemented stricter export restrictions on advanced artificial intelligence (AI) chips, memory chips, and chip manufacturing equipment destined for China. Tariffs on Chinese solar panels and polysilicon were also increased to 50%.

The Office of the U.S. Trade Representative (USTR), which oversees the investigation, stated the goal is to safeguard market-oriented chip manufacturers from the surge in China’s domestic chip production.

U.S. Trade Representative Katherine Tai emphasized that Beijing’s aggressive policies target global dominance in the semiconductor industry. She compared these efforts to China’s expansion in sectors like steel, aluminum, solar panels, electric vehicles, and critical minerals.

“This allows Chinese companies to rapidly increase production capacity and offer artificially low-priced chips, harming or potentially eliminating their market-driven competitors,” Tai explained.

The Biden administration has invited public comments on the investigation starting January 6, with a public hearing scheduled for March 11–12. However, it remains unclear if Trump’s nominee for USTR head, Jamieson Greer, will secure Senate confirmation before the hearing.

The investigation falls under Section 301 of the Trade Act of 1974, a statute invoked by Trump in 2018 and 2019 to impose tariffs of up to 25% on approximately $370 billion worth of Chinese imports. The resulting trade war with Beijing lasted nearly three years.

If Trump inherits the investigation, it must be concluded within a year of its launch. The scope includes both imported chips and their use in critical industries like defense, automotive products, and medical devices. The inquiry will also target China’s production of silicon carbide substrates and wafers essential for semiconductor manufacturing.

US Secretary of Commerce Gina Raimondo revealed disturbing findings from her department’s research: Two-thirds of US products that rely on chips use older-generation chips made in China. Half of US companies, including those in the defense sector, do not know the origin of their chips.

“These findings are very troubling,” Raimondo said, adding, “This undermines U.S. companies and increases dependency on China for critical components.”

Despite partisan divides, China tariffs represent a rare area of alignment between the Biden and Trump administrations. Biden upheld all tariffs imposed during Trump’s tenure and even expanded them. For example, he imposed a 100% tariff on Chinese-made electric vehicles (EVs), effectively barring their entry into the U.S. market.

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