The signing of the agreement to renew diplomatic ties between Iran and Saudi Arabia in Beijing earlier this month caught many observers by surprise, adding to a sense of China’s rising influence in the Middle East amid a growing perception that the US is losing sway. For China, at least in the immediate term, perceptions are important. The timing and location of the Saudi-Iranian declaration and China’s positioning as a peace-promoting, responsible mediator are critical. By bringing together two staunch regional rivals as only it could have done, a clear message is being sent to the United States, the Middle East and beyond. China’s President Xi Jinping will look to build on this success during his visit to Moscow , where he is meeting Russian President Vladimir Putin, to promote China’s position as a mediator between Russia and Ukraine . But while China’s mediation efforts between Russia and Ukraine are likely to remain symbolic for now, its success in the Middle East is already significant. China has become increasingly active in the region, both economically and politically, over the last decade. As tensions rise in Asia and political and economic divisions widen between China and the West, Beijing is becoming even more active in a more welcoming Middle East. China’s engagement in the region has increased substantially since the launch of the Belt and Road Initiative in 2013, from Riyadh to Abu Dhabi, Tehran and Tel Aviv. Originally focusing on trade and investment in the energy sector, Beijing has since diversified its activity, becoming involved in numerous infrastructure projects, smart cities, innovation centres, and 5G mobile networks. Regional leaders, frustrated with US policies in the Middle East, have begun to view Beijing as a more reliable partner, as their distrust of Washington continues to mount. For Gulf Cooperation Council (GCC) countries, the relationship with China is more strategic than opportunistic. China’s unique ability to provide both infrastructure and technology fits well with the visions that Gulf leaders have for their future. China’s Digital Silk Road, introduced in 2015, has become a significant part of its involvement in the region. Government initiatives across the region, such as Smart Dubai, Saudi Vision 2030 and the China-Egypt Suez Economic and Trade Cooperation Zone, already rely on Chinese engagement and technology. While Chinese technology companies like Huawei are experiencing significant resistance from countries in the West, Huawei’s partnerships in the Middle East are only deepening . The shifting regional equation was clearly demonstrated when the UAE suspended talks on its F-35 fighter jet deal with the US in 2021, promised as a reward for signing the Abraham Accords, following a US demand that it give up cooperation with Huawei on its 5G network as a condition for the deal moving forward. While China sees economic and strategic value in its relationship with Iran, especially as its rivalry with the US intensifies, it has also been been turning its attention to US partners such as Saudi Arabia and the UAE. Iran’s frustrations over what it sees as China’s mainly unrealised commitment to upgrading their economic relations were made clear during Iranian President Ebrahim Raisi’s visit to Beijing last month. Power imbalance in China-Iran relations evident during Raisi’s visit The agreement with Saudi Arabia gives Tehran something it needs by easing its regional isolation. For Riyadh, this move cements its shift to developing a strategic partnership with Beijing. China, more than any other player, is equipped to serve as a long-term partner for GCC countries, buying their oil, building their smart cities, and helping them diversify their economies to green energy. Rather than choosing sides , Saudi Arabia and the UAE are inclined to favour a strategy of multiple partners, including the US, China, and India, making the most of them all. As the US works to preserve its global leadership role and Europe remains preoccupied with the war in Ukraine, China will continue to strengthen its position in the Middle East, including its ties with long-standing US allies. The US might be seen as losing strategic interest in the Middle East, but it will remain a dominant regional player in the coming years. To rebuild trust, Washington must take active steps to alleviate concerns among its partners in the Middle East that any pivot to Asia will come at their expense. The US’ traditional role as security guarantor remains critical for its allies in the region, but as its own priorities evolve, Washington needs to adopt a more creative approach towards its regional partners. Why avoiding sides in China-US rivalry ‘doesn’t hurt’ Middle East nations New Middle East-Asia regional groupings, such as the I2U2 comprising India, Israel, the UAE and the United States, as well as others including Japan and South Korea, provide an opportunity for the US to reshape its regional position. The US should move away from the zero-sum game of superpower competition and promote cross-regional economic cooperation between partners in Asia and the Middle East, including increased investment in infrastructure, renewable energy, food security and technology, areas where America has significant expertise but has been losing ground. By doing so, Washington has an opportunity to advance a broader agenda that would allow it to maintain a strategic position in the region, be welcomed by its allies in the region, and bring Asia and the Middle East closer together. Dr Gedaliah Afterman is head of the Asia policy programme at the Abba Eban Institute for Diplomacy and Foreign Relations at Reichman University (IDC Herzliya), Israel