BEIJING: Chinese President Xi Jinping on Tuesday pledged a package of $20billion in loans, and about $106 million in financial aid, to Middle Eastnations, as part of what he called an “oil and gas plus” model to reviveeconomic growth in the region.
Beijing has ramped up engagement in the Middle East in recent years as Arabnations play an important role in Xi’s signature Belt and Road foreignpolicy plan for strong trade routes linking China with central andsoutheast Asia.
Development was key to resolving many security problems in the Middle East,Xi told a gathering with representatives of 21 Arab nations in the Chinesecapital.
“We should treat each other frankly, not fear differences, not avoidproblems, and have ample discussion on each aspect of foreign policy anddevelopment strategy,” he said.
China would offer aid worth 100 million yuan ($15 million) to Palestine tosupport economic development, besides providing a further 600 million yuan($91 million) to Jordan, Lebanon, Syria and Yemen, he added.
A consortium of banks from China and Arab nations, with a dedicated fund of$3 billion, will also be set up, he said.
It was unclear what the relationship between the bank consortium, financialaid and the overall loan package would be.
The loans will fund a plan of “economic reconstruction” and “industrialrevival” that would include cooperation on oil and gas, nuclear and cleanenergy, Xi said.
He urged “relevant sides” to respect the international consensus in theIsrael-Palestine dispute, and called for it to be handled in a just manner,so as to avoid regional disruption.
China, which traditionally played little role in the Middle East conflictsor diplomacy, despite its reliance on the region for energy supplies, hasbeen trying to get more involved in resolving long-standing disputes.
China says it sticks to a policy of “non-interference” when offeringfinancial aid and deals to developing countries, which, coupled withdevelopment, can help resolve political, religious and cultural tension.
It applies this pattern of economic support, as well as a strict securityregime, to its restive western region of Xinjiang. But rights groups havecriticised the approach, saying the clampdown has further stoked, noteased, tension between the Muslim Uighur minority and the ethnic Hanmajority. – Agencies