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China Eyeing Yemen’s Aden Integration into Road, Belt Initiative

Tuesday 3 January 2023
China Eyeing Yemen’s Aden Integration into Road, Belt Initiative

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Alwaght- Preparing itself to lead the world in next decades, China seeks to expand its influence in all strategic regions of the world to realize its major plans. After Chinese President Xi Jinping's visit to Saudi Arabia early in December to expand bilateral ties, Beijing has chosen Yemen as another diplomatic destination for diplomatic visits. 

Taking no side in Saudi-led aggression on Yemen since 2015, China plans to gain a toehold in the war-ravaged country as world powers are getting increasingly involved in Yemen. In recent days, Hassan al-Haid, the head of Aden Free Zone (AFZ), met the Chinese chargé d’ffaires in Yemen Chaw Chang to discuss bilateral cooperation and ways to expand them. 

In this meeting, many aspects of bilateral relations development and ways to prepare the ground for foreign investment in the free zone and take necessary measures to improve Aden port for container transportation were discussed, sources familiar with the meeting said. The head of AFZ stressed the importance of China’s role in providing necessary support for various programs as well as assistance in many economic and humanitarian fields. Cooperation in increasing investment in the free zone in various industrial, commercial, and storing projects was one of the main issues discussed in the meeting. 

The most important projects for the development of the free zone were related to helping accommodate more commercial containers, said the AFZ investment services chief. According to officials, China is planning to help develop the security system of the free zone and carry out necessary updates and training related to the processes of checking containers through X-ray machines. For his part, the charge d’affaires stated that China continues to cooperate with Yemen and many Arab countries, because it has invested $26 billion in Arab countries, and China-Arab world trade volume is set to hit the $400 billion in 2027. 

The presence of Chinese officials in Aden came after a summit between Chinese president and Arab leaders in Riyadh last month in which ways to develop bilateral and multilateral interactions were discussed. In the 1970s, Yemen was divided into north and south Yemen, established relations with the southern government, which was controlled by the communists, setting up the cornerstone of the ideological and political relations between the two countries. Since then, people in the south have had a relatively good vision of the Chinese and Beijing is trying to use past relations to strengthen its present position in the south. 

Chinese goals behind presence in Yemen 

Due to their closeness to the Sea of Oman and Red Sea which are the linking ring between the east and the west, the southern Yemen regions are significant for China’s maritime trade. 

Since 2012, under the leadership of Jinping, China has put the Road and Belt super project at the top of its foreign policy priorities and is now trying to complete this ambitious plan as soon as possible. Having in mind that part of the project, also called New Silk Road, passes through the Persian Gulf and the Red Sea, large sea and rail transportation networks are needed to transfer goods from China to Europe and Africa in the shortest time and at the lowest cost. Yemen, in the vicinity of the Horn of Africa, will play an important role in the transfer of Chinese goods to Africa. Any obstacles in the way of the Silk Road will make it difficult to realize this grand plan, and all the interested countries should play their best role in this global corridor. 

Given Yemen’s poor transportation infrastructure and incapability to build modern facilities and expand its ports, China is rushing to take advantage of this weakness and is building an influence in the south under the cover of infrastructure boost. Saleh al-Mahaji, director general of the AFZ project, pointed to China’s goals in Aden, saying: “China is willing to establish a number of quality projects in the free zone, such as the railway project, container sector development, and establishment of a logistics zone for trade exchanges.” 

Indeed, China’s tendency to strengthen cooperation with Yemen is not limited to the south and Aden, and in its recent trip, the Chinese delegation also visited Taiz and Hodeidah provinces, which are under the control of Sana’a-based Ansarullah Movement, something displaying Beijing’s desire to strengthen relations with Ansarullah as a powerful actor in Yemen and holding the capital. 

Securing maritime trade route 

With 80 percent of the global trade conducted through the sea, the routes with great trade importance take attention of the world powers. China as the world’s second economy very well understands this fact. The Bab-el-Mandab Strait is one of the most important waterways in the world that US and China are trying to dominate, and any power that can take control of this vital region will outperform other competitors in the world’s trade interactions, and this issue is of key importance to China. Washington has recently strengthened its influence in the Red Sea and Bab-el-Mandab in order to increase the security of its Arab and Israeli allies against the threats of Yemen’s Ansarullah. Therefore, China, which is trying to take on the US in the Persian Gulf, has chosen Bab-el-Mandeb for its business plans. Some sources held that in the meeting between the leaders of Beijing and Riyadh, the creation of a new military alliance to ensure maritime security in Bab-el-Mandab was discussed. According to the Saudi Motabe’at news website, Saudi Arabia proposed that this coalition include Egypt, Jordan and the African countries bordering Bab-el-Mandeb under the Chinese command. Also, the security of the maritime area from Bab-el-Mandeb to the Suez Canal was discussed on Riyadh Summit sidelines.

Saudi Arabia, carrying out parts of its oil exports via the Red Sea to European and African markets, is extremely afraid of Ansarullah attacks in the strategic strait and thus is trying to protect its maritime security in association with China. Beijing, which seeks to advance the New Silk Road, is moving to participation in the security in this maritime gate in order to avoid closure of its trade routes. 

Attracting Chinese investment and technology 

The government in southern Yemen is eyeing attraction of the Chinese investment and technology to develop its free zones, container ports, and oil and gas export infrastructure while during war Arab companies and western allies have not had tangible presence in this part of Yemen. 

Yemen in the past was caught in agreements and projects for which it is still paying the price, including the LNG project contract with France’s Total and an agreement with DP World to operate Aden Port. The negligence of the DP World in the operation, development, and management of Aden port led to the cancellation of the contract. Yemen also suffered huge losses due to the LNG project contract with Total. Recently, Total announced its readiness to export Yemen LPG through past mechanism and for $3 per one million BTU, a proposal the economists label “scandalous and a crime against Yemen”, because since cancellation of the contract with Total, there have been many changes in the gas contracts and in world markets one million BTU of LPG is worth $60. 

Given the fact that the strategic south of Yemen is gas and oil-rich and is out of control of Ansarullah, foreign actors have their eyes on its energy resources to secure part of their needs. On the other side, Aden administration, amid public discontentment caused by economic challenges, is hopeful to bring Chinese companies to help improve economic conditions in this part of Yemen. China’s push to invest in Yemen and communicate with various groups in this country is because Beijing looks at Yemen as a gateway to get a foothold in the Red Sea and strengthen its influence in West Asia. Given this Chinese vision, Beijing is expected to deepen its presence in Yemen. 

However, in the current state of war and instability, any investment in the infrastructures would be of no avail, because Ansarullah as the protector of Yemen’s territories has warned that as long as Sana’a the capital does not get involved in energy production in the south, it would not allow Saudi Arabia and its allies plunder Yemen’s resources. The movement has already showed its determination to protect national resources with attacks on Saudi tankers sought to loot Yemeni oil in Al-Dhaba port in Hadhrahmaut. Therefore, Chinese investment in the south cannot secure interests of this emerging power. Actually, Beijing officials should take it into consideration that as long as war and insecurity prevail in Yemen, any economic projects would meet their failure, and the Road and Belt Initiative’s Yemen part would prosper only when Yemen as part of the project regains its peace and security. Therefore, activation of diplomacy to put an end to war is the most influential option China has to prioritize in its Yemen policy. 

 

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China Yemen Aden Investment Energy Ansarullah

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