June 2018

The coverage of Chinese activities in the Mediterranean region published by regional media in June was rather sparse. As usual, most of the articles published touched upon economic issues. We expect to see something more next month, especially regarding the Sino-Arab Cooperation Forum that closed in Beijing several days ago. Indeed, most of the articles published last month were editorials and commentaries written by Chinese and Middle Eastern officials emphasizing the importance of the Forum. Moreover, the seventh annual Central Eastern Europe-China Summit, better known as "16+1", was held in Bulgaria's capital on July 6th and 7th. We hope to see something interesting during the next month as the dust settles.

We start this month's Bulletin with an article about a recent meeting between the Chinese ambassador to Algeria and the head of Algeria's General Directorate of National Security, General Abdulghani Hamel. They met to discuss the security situation, and, as reported in Chinese media this month, the attacks against Chinese citizens in the country. Both officials declared the meeting "fruitful," seemingly laying down the foundations for deeper bilateral cooperation between the police forces of Algeria and China. At the multilateral level, China, together with France, the United States, the United Kingdom, Saudi Arabia, and Russia, was reported as an observer to the7th Meeting of Ministers of Defense of the Sahel and Sahara States, which was held in late June in Nigeria.

According to the Palestinian electronic newspaper Donia Al-Watan, a Fatah delegation, led by Fatah's Central Committee member Abbas Zaki, arrived in Beijing at the invitation of Song Tao, the head of the International Liaison Department of the Communist Party of China. Other Fatah members traveled to Beijing in May to sign a Memorandum of Understanding (MoU)aimed at strengthening the dialogue between the two parties. In June, Zaki reportedly told his Chinese interlocutors that the Palestinian people welcome China to play a larger role in the Middle East and to support President Mahmoud Abbas’s proposal at the United Nations to establish the state of Palestine with Jerusalem as its capital. According to Zaki, the two recent visits of Fatah officials to China is a continuation of the support provided by China to the Palestinian people, especially the military training of Fatah members at the PLA Nanjing Political College.

The repeated attempts by Palestinians to court Beijing coincides with growing concerns in Israel about the implications of Chinese involvement in its economy. In April, Israeli media noted that the acquisition of the dairy giant Tnuva by the Chinese state-owned company Food Bright did not generate the projected growth in revenue. There are growing concerns over the possibility that the new Chinese leadership of the company will decrease the purchase of milk if the prices set by the government will not decrease. This could significantly damage the Israeli economy. Given Tnuva’s iconic role in Israel, it seems evident from the article that there is much more at stake than just the economics of the dairy industry. In fact,  many saw China’s investment as a commitment to Israel's economy and a test for what economic engagement with China might look like.Meanwhile, high-ranking officials from the Chinese embassy in Israel, together with officials from Shanghai's government and its Bureau of Foreign Affairs, and also from Shanghai International Port Group (SIPG) were welcomed in Haifa by the mayor Yona Yahav to celebrate the 25th anniversary of the connection between Haifa and Shanghai, and also the transfer of management to SIPG over the first part of the new port in Haifa (180 square kilometers out of 800 square meters in total).

As to Iran, the Persia Digest reported that China's state-owned train giant CRRC will not cut down its level of investment in Iranian railways, despite the American pressure on companies operating in Iran. It also seems that Iran is also trying to expand its presence in China by opening its second business center in Ningbo following the establishment of its first one in Shanghai in March. According to Ali Dehqani, Iran's commercial attaché to Shanghai, the opening of these business and trade centers in cities where the Chinese government has created special economic zones will contribute to the trade relationship between the two countries. Last year, the total trade volume between China and Iran grew by 9,3%, and China has been Iran's main trading partner over the past ten years.

Finally, the discussion about the role and operations of Chinese telecom companies abroad has become a hot topic among commentators of international affairs. Enrica Banti, the Head of External Relations at Huawei in Italy, told Italian media that companies like Huawei are becoming increasingly active in countries included in the Belt and Road Initiative, aiming to create the digital backbone of the trade expansion that the initiative entails. According to Banti, Huawei plans to expand its training programs for young foreign engineers at its headquarters in China to boost the exchange of technological expertise between China and its partners.

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