by Pierre Al-Khoury
Trade between the Arabs and China dates back more than 2,000 years, with China being an important trading destination for the Arab world since the Islamic caliphate. Back then, many Chinese goods were found in the Arab world, including silk, porcelain and pottery. Many Arab goods were exported to China, including perfumes, frankincense (Al-Luban) and oud.
In recent years, two-way trade has grown significantly. China is the largest trading partner of the Arab world and both the largest market for Arab exports and an important source of Arab imports.
In 2013, China launched the Belt and Road Initiative (BRI) to boost interconnectivity and common development. Such an initiative is also expected to significantly impact the future of Sino-Arab relations.
The high-level meetings held between China and Arab states, especially Saudi Arabia and Egypt, two of the most influential countries in the Arab world, have paved the way for several agreements to enhance multilateral cooperation in various fields, including economy and trade, energy and the environment.
There is still more potential regarding cultural exchanges between the two sides. However, achieving this requires a comprehensive political consensus among Arab states pertaining to development policies.
There are many opportunities for bilateral cooperation, including trade and energy. Through trade, China can play an essential role in developing Arab economies. Through energy cooperation, China can help Arab countries diversify their energy sources, a major step towards achieving the United Nation's Sustainable Development Goals.
China's commitment to a fair solution to the Palestinian issue can be an opportunity for the Arab world. The country can mediate between the Israelis and Palestinians and provide economic and financial assistance to the Palestinians now and after independence.
As a platform, the China-Arab States Cooperation Forum brings together China and Arab countries to discuss economic cooperation. The forum could help promote trade and investment between China and the Arab world. The Arab world is home to a large and growing population, with a combined GDP of over 3 trillion U.S. dollars. This represents a significant market for Chinese goods and services.
The region is also rich in natural resources, including oil, gas and minerals. And through the BRI, both sides can boost trade and benefit mutually from more Chinese investments in the Arab world, including in infrastructure, manufacturing and energy projects.
In the meantime, both sides should guard against risks and threats to their ties, including mainly U.S. intervention, which can hinder Sino-Arab cooperation. The two sides should also play an important role in working for a quicker solution to resolve the Israeli-Palestinian conflict, which, if left unresolved, will affect international investments and limit the region's potential.
Sino-Arab relations enjoy great potential for growth and prosperity. Both sides can work to enhance cooperation in various fields and work together to build a more peaceful and prosperous future for the Middle East.
Editor's note: Pierre Al-Khoury is an economist and professor of Economics & Finance at the Beirut Arab University.
The views expressed in this article are those of the authors and do not necessarily reflect the positions of Xinhua News Agency.
