China strengthens its Silk Road strategy in the Middle East

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/04

President Xi Jinping last week toured Saudi Arabia, Egypt and Iran to promote Chinese economic relations. His first Middle-East visit also emphasised China’s growing international role in the region where the political and security situation is extremely complicated and difficult.
While the Middle East is clearly critical to Chinese energy security, Saudi Arabia and Iran (which has just seen international trade sanctions lifted) are also enticing export markets. The visits resulted in the signing of numerous deals on energy supplies and infrastructure projects.

Last year, Saudi Arabia accounted for about 1 % of China’s total exports, Iran 0.8 % and Egypt 0.5 %. Saudi Arabia accounted for about 2 % of China’s total imports and Iran 1 %. China imported almost nothing from Egypt. Saudi Arabia is China’s number-one oil supplier, accounting for 15 % of all Chinese oil imports. Iran’s share of Chinese oil imports is 8 %.

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