These include investing in and sharing expertise. Renewable energy field These include the green technology industry for solar and wind power generation, climate-friendly transport, electric vehicle batteries, solar power generation, and the mining, processing, and manufacturing of minerals for wind turbines.
In 2021, China announced that it would end construction financing. coal fired power plantPart of the reason is the environmental danger and associated reputational damage. cost efficiencythe availability of green technologies and the need to fill the gap in some minerals critical to the green transition also drove this change.
This policy change is due to the Chinese government Investing and sharing expertise Research on clean energy technologies in Southeast Asia, the Middle East, and Africa. The Belt and Road Initiative has laid the foundations for strong economic and technological engagement. agriculture and mining By 2023, it will represent the fastest growing sector in this initiative.
Especially in Southeast Asia, this initiative and Regional comprehensive economic partnership It paved the way for increasing the level of tariff-free bilateral trade. Spurred by these economic ties, China has supported the development of green energy technologies and industrial supply chains in Southeast Asian countries.
With Chinese investment and cooperation, Indonesia has transformed from a raw nickel exporter to the largest exporter. refined nickel production This will increase nickel exports from US$6 billion in 2013 to US$30 billion in 2022. Furthermore, Chinese battery manufacturer CATL, Invested approximately 6 billion USD Integrated into Indonesia's complete electric vehicle battery supply chain.
Chinese automaker BYD, one of the biggest investors in southeast asiais building. automobile assembly plant The company plans to expand its showroom in Thailand and invest in other regional countries. Chinese solar panel and energy storage manufacturers also plan to invest in Vietnam.
Meanwhile, in the renewable energy sector, nine Chinese companies have pledged to invest more than US$13.5 billion in the Philippines' green energy sector. Chinese solar panel manufacturers are also partnering with Southeast Asian countries, including: malaysia and indonesia We produce solar power plants and production lines for solar panels and energy storage.
Compared to China's climate pledge, G7 countries have joined multilateral banks and private financial institutions in pledging more than US$35 billion to combat climate change. Just Energy Transition Partnership A project aimed at helping Indonesia and Vietnam phase out coal and introduce renewable energy. However, the US government also imposed tariffs on solar panel imports that Chinese manufacturers have finished importing in some Southeast Asian countries. Avoid US import duties.
The Middle East is another region of the world where Chinese investments are under Western scrutiny. China's relations with regional countries follow a similar logic to those in Southeast Asia, but here they revolve around the following points: China's energy imports Rather than investing in Belt and Road.Trade between China and Arab countries reached USD 431.4 billion Last year, it was up from US$222.4 billion ten years ago.
Why China prefers diplomacy over military pressure in the Middle East
Why China prefers diplomacy over military pressure in the Middle East
Arab countries see China's value to them as going beyond a transition to green energy. Beijing's technology sharing and investment is expanding from solar modules and wind turbines to 5G communications networks. artificial intelligence (AI) and beyond.Huawei supports 14 carriers in Arab countries Deploy 5G network Since 2018.
At the same time, the US government and private companies have begun to express concerns about selling advanced AI chips to companies based in the Middle East, given China's presence in the region. During December, G42, an AI company based in Abu Dhabi The company announced it would cut ties with Chinese suppliers to maintain access to American chips after U.S. authorities expressed concerns about Huawei and its relationship with China.
However, like Southeast Asian countries, Middle Eastern countries also value China as a partner with fewer constraints when it comes to providing expertise and investment.Pressure on these countries to reconsider cooperation with china China is likely to continue to grow in terms of advanced technology, but considering technological change, the transition to green energy, and Beijing's guidance in missile and civil nuclear technology, we agree to break with China completely. Unlikely.
To overcome these challenges, China should focus on areas where it has competitive advantages over the United States. This includes strengthening the internal security and stability of Middle Eastern countries through efforts such as: Cooperation with police activities and smart city project. Additionally, China can provide valuable technological expertise across a variety of sectors, including mining, manufacturing, energy, and military equipment.
Given that it is already making cooperative efforts with Arab countries in these areas, China will step up these efforts to outpace the United States and encourage regional countries to maintain balanced relations between the two powers. alone is sufficient. This strategy not only protects China's interests, but also makes regional actors pay greater costs if they try to side with China.
Asma Khalid is an independent researcher and former visiting fellow at the Stimson Center.