The Shifting Sands of Power: Navigating the Complex Dynamics of US-China Relations in the Gulf

Christian Baghai
4 min readJan 16, 2024

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China’s growing ambitions in the Gulf region and the subsequent U.S. response present a complex and multifaceted situation, shaped by geopolitical, economic, and strategic considerations. The dynamics of this situation involve several key aspects:

Strategic Calculus of Gulf States: Gulf Cooperation Council (GCC) countries, traditionally reliant on the U.S. for security, are now diversifying their international relations due to shifts in American interests in the Middle East and North Africa (MENA) region. These countries are not just choosing between the U.S. and China; they are also engaging with other significant global players like the European Union, the UK, India, and Japan. China’s appeal to the Gulf states lies in its role as an economic powerhouse with growing influence across Eurasia and the Indian Ocean region. However, the Gulf states maintain a clear distinction between their economic partnership with China and their political and security ties with the U.S.​​. The Gulf states are also pursuing a hedging strategy as the China-U.S. rivalry escalates, balancing their interests and avoiding alignment with either side.

China’s Diplomatic Achievements: China has made notable diplomatic strides in the Middle East, such as brokering a detente between Saudi Arabia and Iran, securing long-term liquefied natural gas agreements with Gulf countries, and hosting multilateral forums to promote cooperation and dialogue among Arab states. These developments have caused concern in the U.S., particularly as they suggest China’s ability to extend its influence beyond mere economic transactions to potentially rival the U.S. in regional influence. However, the U.S. still remains the top security partner for Gulf countries, and relations with China in the Gulf are primarily transactional, centered around energy needs. China has also adopted a balanced and pragmatic approach to the region, avoiding taking sides in conflicts and emphasizing South-South cooperation and the Belt and Road Initiative.

U.S. Concerns and China’s Military Inroads: The U.S. has expressed significant concern over China’s expanding role in the Gulf, especially in military-security affairs. This concern was highlighted when U.S. intelligence reported the construction of a Chinese military facility in the UAE, which was halted following U.S. intervention. While China’s military presence in the region has grown, including arms sales and military exercises, it’s important to note that China’s policy has traditionally been non-alliance in the Middle East, focusing more on economic cooperation than on forming defense commitments. However, China’s military modernization and its strategic competition with the U.S. have raised questions about its intentions and capabilities in the region. The U.S. has responded to China’s aggression in the South China Sea and overall military expansion by strengthening its alliances and partnerships in the Indo-Pacific region, and by pursuing a whole-of-government approach that integrates diplomatic, economic, informational, and military elements of power.

China’s Military Capabilities and Strategy: China’s naval capabilities, highlighted by the launch of its new aircraft carrier, the Fujian, represent its commitment to projecting military power. The Fujian will be China’s first aircraft carrier equipped with catapults to launch its aircraft, enabling its fighters to fly strike missions at longer ranges and with heavier ordnance loads. However, China’s military strategy in the Gulf and the wider region remains cautious. Despite its advanced naval capabilities, China is likely to focus on protecting its commercial interests and maintaining regional stability rather than pursuing aggressive military expansion. China has also adopted a balanced and pragmatic approach to the region, avoiding taking sides in conflicts and emphasizing South-South cooperation and the Belt and Road Initiative.

Broader Geopolitical Implications: The U.S. and China’s engagement in the Gulf is part of a larger geopolitical contest that has implications for the global order and regional stability. Gulf states, particularly Saudi Arabia and the UAE, are key to China’s broader ambitions in the Middle East, both in terms of energy resources and as part of China’s Maritime Silk Road Initiative, which aims to enhance connectivity and trade across Eurasia and Africa. Meanwhile, the U.S. is seeking to maintain its long-standing influence in the region, despite challenges posed by China’s growing presence and its own strategic pivot to Asia, which has reduced its military and diplomatic involvement in the Middle East. The Gulf states are navigating this complex environment by maintaining their traditional security ties with the U.S. while expanding economic and diplomatic relations with China.

In summary, the Gulf region is witnessing a subtle yet significant shift in its international relations, marked by the Gulf states’ strategic balancing act between the U.S. and China. While the U.S. remains a key security ally, China’s rising economic influence and diplomatic engagements are reshaping the region’s geopolitical landscape. The situation is dynamic and requires continuous monitoring to understand the evolving implications for regional and global politics.

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Christian Baghai
Christian Baghai

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