Arab states’ rift with Qatar clouds China’s plans for Gulf free-trade deal
Arab states’ split won’t hit energy supplies but could stall agreement with Beijing, analyst says
The shock decision by the Arab world’s strongest powers to isolate Qatar will complicate China’s efforts to reach a free-trade deal with the region, analysts said.
On Monday, Saudi Arabia, Egypt, Bahrain, the United Arab Emirates and the internationally recognised Yemeni government-in-exile said they would cut ties with Qatar over its alleged support for Iran and radical Islamist groups, including the Muslim Brotherhood.
The fallout from the decision was felt in China, which traditionally has stayed neutral in Middle East politics. Observers said Beijing would need to walk a fine line to expand its economic reach into the region.
Saudi Arabia is China’s third-largest source of oil, while Qatar is its second-largest source of liquefied natural gas, and third-largest source of liquefied petroleum gas.
Chinese analysts said that while energy trade with the Middle East was unlikely to be affected, the region’s internal disputes could stall progress on China’s new Silk Road project and free-trade talks between Beijing and the Gulf Cooperation Council (GCC). The GCC’s member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.