As the United States and Britain launch air strikes to prevent Houthi rebels in Yemen from attacking cargo ships in the Red Sea, China calls for restraint, according to a report published by the agency.Bloomberg“.
However, the world’s second-largest economy has been affected by the turmoil in the Red Sea. China imports about half of its crude oil from the Middle East, and exports more to the European Union than to the United States.
According to Bloomberg Intelligence, the Shanghai Container Shipping Index rose last week to the highest level since September 2022, reflecting the additional costs of diverting commercial ships from the Red Sea to the Cape of Good Hope in South Africa.
But for the Chinese leader, Xi Jinping, the costs are not so high as to push his country to get involved in confronting the Houthi group, especially since there are those who are carrying out this mission, which is believed to increase feelings of hostility towards Washington in the Middle East region.
In this regard, Jennifer Welch, chief geo-economic analyst at Bloomberg Economics, says that Chinese leaders “do not have much to gain if they decide to take stronger positions… This is similar to their approach in the Russian-Ukrainian war, where they call for peace but refuse to condemn Russia or contribute in a way.” Great in the efforts made to bring peace to that part of Europe.”
Asian shipping stocks rose on Friday after Washington and London launched strikes on targets in Yemen, prompting the Houthis to pledge a strong response.
What does the escalation of attacks against the Houthis mean for the Egyptian economy?
After the recent US and British air strikes on Houthi targets in Yemen in response to those perpetrators’ drone attacks on commercial ships in the Red Sea, some commentators in Egypt said that escalation in this matter could reduce traffic in the Suez Canal and harm their country’s economy and that of the Houthis. Global, according to a report by the Voice of America website.
In November, the rebels stationed in Yemen began targeting commercial ships heading to Israel, under the pretext of their support for Hamas, which is listed on the US terrorist lists, in its fight with the Israeli army.
Foreign Ministry spokeswoman Mao Ning said on Friday that China was “deeply concerned” about the escalation in the Red Sea, but remained noncommittal to taking any action.
She added: “We hope that all parties can play a constructive and responsible role to protect security and avoid any attacks against civilian ships, as this is not in the interest of international trade.”
Over the past year, Xi Jinping has intensified his ties and contacts with the Middle East in an attempt to gain credibility as a global statesman.
In March, the Chinese president took credit for a breakthrough between Iran and Saudi Arabia, although questions remain about the extent of Beijing’s role in brokering the deal.
“Little capabilities”
Several countries in the Middle East have urged China in recent weeks to use its regional influence to prevent a broader war, according to people familiar with the situation, who requested anonymity, but Beijing faces restrictions in convincing the Houthis or Iran.
Middle East crises.. How will they affect oil prices in 2024?
With the military escalation taking place in the Middle East, some fear that oil prices will be affected, leading to an increase in price levels at a time when countries are struggling to control inflation rates.
“China has very little ability to project power in the (Arab) Gulf region, and is certainly not prepared to get involved in a larger conflict,” said William Figueroa, an assistant professor at the University of Groningen in the Netherlands.
He added: “A strong condemnation of the Houthi attack would risk angering Tehran and its allies in the region, and would not achieve much.”
On the other hand, some in Beijing also see the Houthi attacks in the Red Sea as beneficial to China. Xiao Yunhua, a professor at the National Defense University of the Chinese People’s Liberation Army, explained in December on social media: “In a way, the Houthis unwittingly presented “He meant a great service to China.”
Xiao claimed that the disruption would push more traders to use railway networks, boosting Xi’s Belt and Road Initiative to build infrastructure in emerging economies.
He continued: “Expanding the Belt and Road Initiative is our international strategy to cut off Washington’s hegemony, undermine US naval power, and strengthen global multipolarity.”
The Chinese container shipping giant China Cosco Shipping has stopped delivering goods to Israel due to threats and attacks posed by militants.
Bloomberg reported on Thursday that at least five ships crossing the Red Sea are using their signals to say they have links to China in an attempt to avoid being targeted.
Henry Huiyao Wang, founder of the Center for China and Globalization, a policy research group in Beijing, said China wants to take a comprehensive approach to tensions in the Middle East, including Houthi attacks.
He explained: “The Israeli attack on Gaza is the root cause of what is happening, and we need to really look at the matter as a whole picture and not separately.”
In the past, the United States and its allies have struggled to persuade China to join international operations. As the seas off East Africa became a haven for pirates, it took several years to convince Beijing that shipping freedom and security was essential, according to a foreign shipping executive in Beijing.
China had rejected the formation of a US-led task force – Operation Prosperity Sentinel – to provide security for ships crossing the Red Sea. The Chinese Navy has ships nearby that combat piracy.
The confrontation in the Red Sea is likely to affect the cost of Chinese energy imports, as China’s oil imports from the Middle East accounted for 46 percent of the country’s total crude oil imports in the first 11 months of last year, according to customs data.
Xi would also likely face backlash if he sent troops to fight the Houthis, both from those in the Middle East who might oppose the move and from hawks in the West who might raise concerns about Chinese military expansion, according to Joseph, a professor of international relations at East China University. Regular in Shanghai, Gregory Mahoney.
He concluded by saying: “There will likely also be a lot of criticism from some Chinese for this step, especially (hard-line) nationalists.”
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2024-01-16 09:45:00
