6.10.2024
Saudi in CBDC, UAE and Kuwait working with PRC, issues on Chinese automobiles in MENA, an Al Jazeera interview with Wang Huiyao.
I’m still in the process of figuring out the format and schedule for this newsletter. I think I’ve been posting too frequently, which makes it hard for readers to keep up with. At the same time I don’t want to post too much per issue - nobody wants a 30 minute read full of links. No doubt it will start to take shape in a more organic way, but for the time being, any feedback on preferences for length/frequency is welcome.
As usual, Monday posting is a mish-mash. Basically, a series of small-ish stories that, taken together, just reinforce the point of this newsletter: there is a constant trickle of stories that show how China is becoming a more significant feature in the Middle East across nearly every sector.
Saudis join intl digital currency project - China Daily. KSA became a full participant in mBridge, a multi-country central bank digital currency initiative, along with China, Thailand, the UAE, and Hong Kong. mBridge was established in 2021 to facilitate cross-border payments in digital currencies. Of course, with Saudi’s involvement the big focus is a challenge to the Petro Dollar.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said: "Digital renminbi is an integral part of the global currency system. Including digital renminbi in the settlement of oil trade between China and Saudi Arabia would be beneficial for all parties. For Saudi Arabia, the implementation of renminbi settlement in cross-border trade would optimize the structure of its settlement currency."
Zhan Junhao, founder of Fujian Huace Brand Positioning Consulting, said that as Saudi Arabia is a country rich in oil resources, its possible adoption of digital renminbi for oil trade settlement would "greatly promote the convenience and efficiency of bilateral trade".
"Specifically, the immediacy of digital renminbi settlement will make transactions quicker, reducing intermediate links and costs," Zhan said.
"In addition, using digital renminbi settlement can help Saudi Arabia avoid risks caused by fluctuations in the US dollar exchange rate and ensure the stability of trade returns," he added.
Etihad Airways and China Eastern Airlines announce landmark joint venture - This is interesting - the first joint venture between a Chinese and Middle Eastern airline. Etihad is one of the UAE’s two flagship carriers, Emirates being the other. We’re seeing a lot of momentum in travel & tourism post zero-COVID.
This JV signifies a commitment to offering expanded travel options and seamless travel experiences for passengers travelling between major Chinese cities like Shanghai, Beijing, Xi’an, and Kunming, and key cities in the UAE and across the Middle East and Africa regions.
Sharjah delegation wraps up Shanghai visit with 20+ key meetings to boost development, economic ties - Emirates News Agency. Typically Dubai and Abu Dhabi are the stories when we talk about China-UAE relations. Sharjah is the third largest city in the Emirates. Here the story is a delegation from the Department of Government Relations traveling to Beijing, Shandong and Shanghai and covering an incredibly wide range of meetings over educational, tourism, economic, and cultural sectors. More evidence of maturing and deepening engagement.
China to accelerate Kuwait's Mubarak Al-Kabeer port development - Arab Times. More talk about the Kuwaiti port project. It’s interesting that this has gotten more attention lately; China hasn’t really been active in Kuwait compared with most of its neighbours in recent years. Still, this doesn’t seem to represent a fundamental shift. China’s good at developing ports and Kuwait wants to develop a port.
Dongfeng Algeria Head Office Opened, Making New Progress in Opening up the African Market. Just a press release, but more penetration of Chinese automobiles into the region.
6. Turkey to Impose Additional 40% Tariff on All China Vehicles - Daily Sabah. Coming immediately after the FM’s high profile trip to China, I suspect this won’t be appreciated in Beijing.
The additional Turkish tariff will be set at a minimum of $7,000 per vehicle, with effect from July 7, a presidential decision published in the country's Official Gazette showed.
"An additional tariff will be imposed on the import of conventional and hybrid passenger vehicles from China in order to increase and protect the decreasing share of domestic production," the Trade Ministry said.
Israel’s war on Gaza: The view from China - Al Jazeera. A lot in here that wouldn’t really hold up to a deeper level of scrutiny regarding China’s position in the Middle East but useful to see how recent events are being discussed. For what it’s worth, I think the interview overplays China’s diplomatic role in the region.
I imagine the Etihad deal is part of an attempt by Abu Dhabi to lure some of the Chinese tourists and businessmen away from Dubai, which is their main destination in the UAE by far.