WORLD THIS WEEK

China: President Xi’s visit to Saudi Arabia hints at Beijing’s pivot to the Middle East

What happened?

On 8 December, China’s President Xi Jinping landed in Saudi Arabia for a three-day-long state visit.

Chinese media claimed the visit was the country’s “biggest diplomatic initiative in the Arab world.” Xi Jinping signed a comprehensive strategic partnership agreement with Saudi Arabia and a series of investments and energy resources deals. Both countries signed 34 agreements on the following areas: information technology, genetics, mining, hydrogen energy and manufacturing. The Chinese delegation also agreed to set up an electric vehicle plant in Saudi Arabia. It also includes Huawei being allowed to provide cloud computing services and building high-tech complexes in Saudi Arabian cities.

On Iran, Xi agreed with the Arab concerns while Saudi officials agreed with Beijing’s one-China principle.

Xi engaged in two other summits during his visit to Riyadh: the China-Saudi-GCC Summit for Cooperation and Development and the Saudi-Arab-China Summit for Cooperation and Development. On 9 December, Xi Jinping met the Arab leaders from the Gulf, Africa and the Levant at a summit hosted by Saudi Crown Prince Mohammed bin Salman. He also held bilateral meetings with the Kuwait Crown Prince, Egyptian President, Iraqi Prime Minister, Sudanese leader, and Palestinian President. He stressed on the importance of stability in the oil markets. Xi said: “China will continue to firmly support the GCC countries in maintaining their own security and build a collective security framework for the Gulf. China will continue to import large quantities of crude oil from GCC countries on an ongoing basis.” More importantly, Xi announced that China would buy oil and gas in yuan instead of the US dollar.

What does it mean?

The increasing Chinese involvement in the Middle East is a cause of concern for the US and Russia. Media sources comparing the US President Joe Biden’s visit to Saudi Arabia in July 2022 observe a massive change in the Kingdom’s approach. Analysts hint at a growing discomfort between the US and Saudi Arabia’s relations, caused by the Jamal Khashoggi’s murder, the human rights issues and its energy policies.

The deepening relations between China and the GCC are also a cause of concern for Russia as it competes with the Gulf to sell oil to its largest customer. It has already been offering big discounts after the Ukraine war; competing with the Gulf may become deeply disadvantageous for Russia.

China’s internal affairs. Further, Mao pointed fingers at Japan’s aggression during the world wars and said: “Pointing fingers at other countries will not cover up Japan's past. Politicizing and instrumentalizing human rights issues to hurt China's image and stall China's development will not succeed.”

Sri Lanka: World Bank approves access to concessional financing from International Development Association

On 6 December, Sri Lanka’s President Media Division (PMD) reported that the World Bank had approved Sri Lanka to access concessional financing from the International Development Association (IDA). The financing offered at minimum interest rates will help the country implement government-led programs to stabilize the economy and protect millions of people’s livelihoods. World Bank also added that the approval makes Sri Lanka an IDA country. The World Bank Vice President for Development Finance, Akihiko Nishio, said that the World Bank is committed to helping Sri Lankan people when there are needs. He also added that the World Bank is ready to support Sri Lanka in implementing reforms and helping create the foundation of sustainable growth.

ALSO IN NEWS

China: CPC withdraws the zeroCOVID policy and introduces new norms for pandemic control

On 4 December, in continuation of the protests in China, students at Wuhan University gathered outside the administrative block and called for an open process and information transparency. The students protested against the zero-COVID policy of the Chinese government and expressed their discontent with the confusing regulations on returning to their hometowns. The numerous protests in cities across the country resulted in an emergency meeting where the authorities agreed to ease the COVID-19 restrictions. The World Health Organization (WHO) Emergencies Director Dr Michael Ryan appreciated China’s decision to loosen its policy. On 7 December, China’s National Health Commission released a 10-point announcement withdrawing the zero-COVID policy and presented a new set of lenient norms to control the pandemic.

Japan: House of Councilors adopts resolution on human rights violation in China

On 5 December, Japan’s House of Councilors adopted a resolution on human rights in China and expressed concerns over the violation of rights in Xinjiang, Tibet, Inner Mongolia and Hong Kong. China’s Foreign Ministry Spokesperson Mao Ning referred to the resolution and reprimanded it for ignoring the basic facts, being based on disinformation and interfering in

Russia- US: Diplomats of both countries meet at Istanbul to in bilateral relations

On 9 December, on the wake of a high-profile prisoner swap between Russia and the US, it was revealed that the diplomats of Moscow and Washington held talks in Istanbul at the Valdai discussion forum. Russian Foreign Minister told that the meeting was aimed at discussing the ‘irritants,’ in the bilateral relations between the two countries and stated that it was merely a routine issue and “not an indication of resuming dialogue with the US. The word ‘irritants’ is said to refer to the functioning of the Russian diplomatic missions in the US and vice versa. The US has not made any public comments on the meeting.

Argentina: Vice President sentenced to six years in prison

On 6 December, Argentinian Vice President Cristina Fernandez de Kirchner was sentenced to six years in prison under the charge of embezzling USD one billion through public works projects in her presidency. She has also been barred from holding a public office. The judgement does not come into effect until all the appeals filed by Fernandez de Kirchner are addressed.

Fernandez de Kirchner on her part has denied the accusations and has claimed that she is a victim of the “judicial mafia.”

Fernandez de Kirchner was the President of Argentina from 2007-2015 where she allegedly sanctioned many public works projects and diverted funds from these projects to the business of her associates.

Uruguay: Uruguay announces plans to sign free trade agreements, causes tension in Mercosur trade bloc

On 06 December, Uruguay at a Mercosur trade summit announced its intentions to pursue free trade agreements with China and join the TransPacific Partnership (TPP). This rattled the Mercosur trade bloc consisting of Uruguay, Brazil, Paraguay and Argentina. Uruguayan President Luis Lacalle Pou said: "Uruguay needs to and has the ambition to open up to the world. Of course, if we go in a group, it is much better." The Presidents of Brazil, Argentina and Paraguay have opposed this move saying that it hampered the integration of the Mercosur trade bloc. The Paraguayan President Mario Abdo Benítez said that Uruguay can proceed with the deals but it should share and consult with the bloc before it ratifies it. Uruguay has previously criticised the trade blocs restrictions and tariffs and added that it was affecting its economy.

Mexico: Mexican Congress rejects proposed electoral reform but approves an alternate lesser electoral reform law

On 6 December, Mexico’s lower house of Congress failed to pass the proposed electoral reform calling for a constitutional amendment to restructure the National Electoral Institute (INE). The ruling parties and their allies did not get a two-thirds majority to pass the bill with 269 votes in favour, 225 against and one abstention. On 07 December, Congress did pass an alternate proposal for electoral reform which called for reducing the budget of the INE and reducing its power. Both proposals were criticised by the opposition and the public saying that the government wishes to gain more control of the electoral commission before the 2024 elections.

The US: Annual NDAA passed by US house of representatives, USD 858 billion allotted for defense spending

On 9 December, more than two third of the representatives voted in favor of the National Defense Authorization Act (NDAA) which paved the way for defense budget to hit the record of USD 858 billion. Around 10 billion has been allotted for the Taiwan Enhance Resilience Act (TERA), while mentioning China as the main threat to national security objectives in the bill. The 2023 NDAA includes USD 816.7 billion for the Department of Defense. The legislation also dropped the Covid vaccine mandate for active service duty personnel. The bill did not include provision for vendors to mention the software bill of materials (SBOM) on the technology they provided to government agencies.

Ukraine: Foreign Minister reveals that Ukraine can use American weapons in Crimea

On 8 December, Ukrainian Foreign Minister claimed that the US does not restrict Ukraine from using American-origin weapons for their strikes in Crimea. Ukraine is obligated to a promise made to the US to refrain from striking with the equipment supplied by the US, on Russian soil. During his conversation with the Wall Street Journal, Dmitry Kuleba accused Russia of not showing interest for the peace talks while arguing that Moscow has been preparing for new battles. The US and it’s NATO allies have been providing Ukraine with large quantities of weapons and military assistance since the start of the war. In this context, experts have claimed that these supplies have blocked the scope for a peace negotiation between the two warring countries.

About the Authors

Harini Madhusudan, Rashmi Ramesh, Akriti Sharma, and Ankit Singh are PhD scholars in the School of Conflict and Security Studies at the National Institute of Advanced Studies. Avishka Ashok, Abigail Miriam Fernandes, Apoorva Sudhakar, and Joel Jacob are Research Associates at NIAS. Sethuraman Nadarajan, Bhoomika Sesharaj, and Madhura Mahesh Research Interns at NIAS.