China has consistently maintained that it will not interfere in the domestic affairs of other sovereign countries. (file)
Beijing:
China has called for a halt to attacks on civilian vessels in the Red Sea, which have dramatically escalated the Hamas-Israel conflict and threaten Beijing’s commercial interests along the Suez Canal.
Yemen’s Iran-backed Houthi militia, which seeks “death to Israel”, is challenging the ability of the world’s largest trading nation to protect billions of dollars of strategic investments in Egypt.
Since President Abdel-Fattah el-Sisi came to power in 2014, China has increased its investment and commercial activities along Egypt’s Suez Canal, through which a significant portion of the Asian giant’s westbound goods pass. Part flows.
investment and trade
Data from the American Enterprise Institute (AEI) think tank shows that Beijing has encouraged state-owned companies to invest tens of billions of dollars in Egypt’s logistics, transportation and energy sectors and, according to the World Bank, $3.1 billion. Has given a dollar loan.
And in the months before Hamas’ October 7 attack on Israel alone, companies from China and Hong Kong pledged at least $20 billion to various projects along Egypt’s main waterway.
Attacks that halt commercial shipping through the Red Sea and the Suez Canal could dissuade Chinese investors who have spent huge sums developing the waterway to profit from its safe passage.
According to AEI, state-owned shipping giant COSCO, which joined Maersk, Hapag-Lloyd, Evergreen and other major shipping lines in suspending services to Israel on January 7, said last March the Egyptian port infrastructure $1 billion was invested in the structure.
COSCO was joined by CK Hutchison Holdings, a major Hong Kong-based conglomerate, which in March announced plans to invest an additional $700 million to develop a new container terminal in the Red Sea port of Ain Sokhna and a new container terminal in the B100 . In the Mediterranean port of Alexandria.
The same month, demonstrating China’s broader commercial interests in Egypt as a link between Asia and the Mediterranean and European markets, Xinxing Ductile Iron Pipes planned to invest $2 billion in iron and steel plants also in Ain Sokhna. Made.
And in October, Egypt’s Suez Canal Economic Zone signed a $6.75 billion deal with state-owned China Energy to develop green ammonia and green hydrogen projects in the Sokhna industrial zone, along with Hong Kong-listed United Energy Group. Signed an agreement worth 8 billion dollars. Establish potassium chloride production site.
Equally at stake is President Xi Jinping’s flagship Belt and Road Initiative, of which Egypt, Yemen and Iran are all members.
China has consistently said it will not interfere in the domestic affairs of other sovereign countries, leading analysts to question how it should respond if problems emerge between BRI members.
The dilemma particularly arises when the issue fundamentally undermines the stated objective of the BRI, which is to connect Asia to Europe through the creation of a series of investment and trade corridors spanning the continent.
reputation on the line
There is more than money at stake.
Beijing is under pressure to prove that its involvement in the unexpected standoff between regional rivals Saudi Arabia and Iran in 2023 was more than dotting the “i’s” and crossing the “t’s.”
Following that agreement, China’s top diplomat, Wang Yi, who is currently in Egypt as part of a tour of four African countries, said Beijing wanted to play a constructive role in dealing with global “hotspot issues”.
US officials believe China has a key role in reining in Iran and have reportedly pressured Beijing to use its influence on Tehran to support Hamas – which is also supported by Iran – and Israel. Help prevent conflict from spreading.
While COSCO was still visiting Israeli ports while its competitors had already resumed Asia-to-Europe voyages via South Africa’s Cape of Good Hope, some analysts questioned whether Chinese influence on Iran was playing a role. Iranian oil accounts for about 10% of China’s crude imports.
Bloomberg reported on Thursday that at least five ships passing through the Red Sea were signaling “all Chinese crew” or words to that effect at one location on communications networks, typically to try to avoid attack. It was the destination of the ship.
China’s Wang Yi told his Egyptian counterpart in Cairo on Sunday that Beijing supports a larger, more official Israeli-Palestinian peace conference and a timetable for implementing a two-state solution.
So far, China appears to be restrained in its diplomacy due to its position of non-interference in the internal affairs of other sovereign states. Yet at the same time it aspires to enhance what Wang refers to as China’s “international influence, appeal and power” to shape events through diplomacy.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
