The Bilateral ties between China and UAE is getting stronger amid diplomatic pressure

In 1989, the first visit was made by China to the UAE. It is followed by many other visits in the following years. Sheikh Zayed bin Sultan Al Nahyan, was the first UAE King to visit China in 1990. Both the UAE and China have signed 150 MoUs and bilateral agreements which aided to strengthen the relationship between them. 60 percent of China’s goods are exported to the UAE through ports and free zones. 

When the geography of China is observed keenly, it clearly explains the strategic plan of China’s BRI. The Belt and Road Initiative (BRI), which connects the regions of South Asia, Russia, Africa, Europe and the Middle East through roads. This could enhance the trade between China and the other nations easily. The UAE has also agreed to this to encourage infrastructure, trade and economic development. The projects under BRI are

• CPEC – China-Pakistan Economic Corridor. This project focused on the development of infrastructure and energy in Pakistan.
• New Silk Road. This road connects China to Europe via Central Asia.
• Maritime Silk Road. It will implement the development of ports in South and Southeast Asia, African and Mediterranean regions.

Friendly Investment Environment

Chinese Companies are attracted towards the free zones offered by the UAE which includes the Jebel Ali Free Zone, Dubai Multi Commodities Centre (DMCC) with 100% ownership for the foreigners who invest and it gets more attractive with the tax exemptions. They have allowed the Chinese firms like Huawei and China State Construction Engineering Corporation to establish their open investment strongly. This has made an enticing and friendly destination for China and their investors. The following reasons invigorates their partnership for mutual economic and strategic interests.

• Economic Cooperation
• Energy Security
• Economic Diversity 
• Technology & Investment

This bilateral relation of China and UAE satisfies the complementary goals of both the countries.

Agreements and Bolster amidst the Western Pressure

Various agreements have been signed between China and UAE even after encountering the pressure from the Western countries and USA. Over the past 40 years, both the countries have signed several agreements for the economic betterment. In 2018, the Comprehensive Strategic Partnership was signed for the cooperation in different disciplines which includes trade, investment, technology and cultural exchange. A Preliminary agreement has been signed between the UAE’s General Civil Aviation Authority and the Civil Aviation Authority of China to regulate the trade and investment of the civil aviation sector. 

With an initial capital of $20 billion, the Joint Investment Fund agreement was signed to catalyse the investments in technology, renewable energy and infrastructure sector. The Chinese government has extended their hand to develop the Nuclear Power Plant in UAE. The agreement which is focused on Cultural and Educational exchanges promised to promote the collaborations of art, education, language and tourism between China and the UAE. They also fortified their association by signing an agreement in the Defence and Space sectors.

China met with many pressures from the Western countries, particularly the USA. China is the biggest competitor in 5G technology and electronics exports. This interrupted the U.S. dominance in the technology; to cut down the export of China’s Huawei and 5G technology in the global market U.S. and its allies raised concerns by stating that these technologies could enable the surveillance and espionage of the users. But UAE has never failed to bolster their ally China and they accepted to adopt the 5G infrastructure of Huawei.

The U.S. tried to influence the UAE by raising concerns over China’s growing influence in the Gulf regions because China is largely dependent on energy imports from the UAE. Even after imposing heavy tariffs on Chinese goods by the Western countries, the UAE has become the hub of investment for China. 

The consecutive agreements and events where both China and the UAE never gave up the opportunities in strengthening their bilateral ties amidst the friction between China and the Western countries.