Why Qatar matters to China, in spite of Gulf isolation
The Qatar-China link goes deeper than the New Silk Road, raising broader trade and investment implications in wake of big Gulf diplomatic breakdown
Qatar may be just a small, gas-rich peninsula in the Middle East, but it’s been making waves this week after eight nations announced they would cut diplomatic ties with the country, citing its terrorism links.
The move has the potential to hurt Chinese president Xi Jinping’s ambitions in the region for his massive “Belt and Road” trade plan, and could disrupt the travel plans of mainland tourists. But the links between Qatar and China run much deeper than the modern Silk Road. Ongoing problems with the Gulf states could end up impacting broader trade, investment and infrastructure planning.
So from the standpoint of China-Qatar relations, here are the key questions in the wake of the big Gulf diplomatic breakdown:
1. Is a regional free trade agreement still possible?
China is working to negotiate a free trade agreement with the Gulf Cooperation Council, which includes Qatar. Unfortunately for China, which first started negotiating the agreement back in 2004, the bloc also includes Bahrain, Saudi Arabia and the United Arab Emirates, all of which cut diplomatic ties with Qatar on Monday. If the members can’t sort out their differences, the China-GCC trade deal will be groundless.
