The China-Palestine relationship, explained

THE CHINA PROJECT

China has been trying to keep good relations with Israel, Palestine, and other heavy-hitting Middle Eastern players. Which is why the Israel-Hamas war is a worst-case scenario of sorts, making it impossible for Beijing to exert influence. Its chances of brokering a peace deal seem lost at the moment, this after it had made progress earlier this year after achieving detente between old enemies Saudi Arabia and Iran.

Last week, Beijing consistently refused to condemn Hamas for its surprise attack or name it a terrorist organization. Instead, “China condemns all violence and attacks on civilians,” according to the Ministry of Foreign Affairs spokesperson.

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Beijing has never labeled Hamas a terrorist group. Nor has it, according to Guy Burton, author of China and Middle-East Conflicts, for any other faction in the complicated web of Palestine’s dubious governing body, which includes the authoritarian Fatah that governs parts of the West Bank.

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“A look at the big picture is probably useful,” says Burton. He explains that so far, important Islamic partners in the Middle East, such as Saudi Arabia, have not previously condemned Hamas, whereas Europe and the U.S. have repeatedly. For China, “this may be a way of maintaining outreach to the Arab world and demonstrating its difference toward the West.”

However, Chinese banks and businesses have also invested over $965 billion in Israel. Israel is a “cooperative strategic partner,” ranking higher than Palestine in China’s hierarchy of diplomatic relations. Yet this has not assuaged “an underlying suspicion and distrust among some Israelis, owing to China’s historic solidarity with the Palestinians,” says Burton.

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China’s State Taxation Administration reported that in 2018, a paltry $8 million contract agreement in Palestine had made China’s total investment there rise by 194%. The Belt and Road Initiative has not helped much, either — projects are limited to a seven-kilometer-long road, and solar panels in the West Bank and Gaza Strip. Burton cites a lack of interest by Chinese businesses in Palestine’s small market, a lack of certainty on which government to obtain permits from, and reluctance to make risky investments in a conflict-ridden area.

The two sides boosted their diplomatic relations during a visit by Palestinian leader Mahmoud Abbas to Beijing in June this year, with Xi reaffirming China’s commitment to Palestinian statehood and peace talks. Abbas said the two signed agreements for more solar panels and roads, a solar panel factory, and a steel plant. Burton thinks this won’t make a real difference to the relationship — not when Chinese investment and trade with Israel is “magnitudes larger.”

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