China seeks Gulf trade deal as Xi urges end to regional power struggle
Oman's sultan arrives in Beijing for the first state visit since 1978, signaling openness to a bilateral trade agreement amid the Iran war.
By Jonathan Hoffmann ·
Oman has opened the door to a preferential bilateral trade and investment agreement with China. Sultan Haitham bin Tariq al-Said made this offer during a two-day visit to Beijing, marking the first time an Omani head of state has traveled to China since the two nations established diplomatic ties in 1978. The announcement comes as global energy and shipping costs rise due to tensions in the Strait of Hormuz.
China President Xi Jinping met with the Sultan on Monday. Xi described the global situation as undergoing profound changes unseen in a century. He stated that the Middle East and Gulf region should not become an arena for great-power rivalry or geopolitical conflict. According to China's Foreign Ministry, Xi said peace and stability require joint nurturing and protection by all parties.
Xi expressed China's willingness to strengthen communication and coordination with Arab countries, including Gulf Cooperation Council states. The goal is to work toward restoring peace and achieving lasting stability and security. China has traditionally played a low-key diplomatic role in the region but has recently increased its efforts to help end tensions. These tensions stem from the US-Israeli war on Iran, which has disrupted shipping in the Strait of Hormuz.
The Sultan responded by expressing deep appreciation for China's positions on key regional issues. Omani state media reported his statement that development and stability are inextricably linked. He noted that national prosperity requires an environment defined by security, peace, respect for state sovereignty, and adherence to international law. He emphasized that disputes should be resolved through peaceful means.
China is currently Oman's largest trade partner. Direct flights between Beijing and Muscat have boosted tourism and business links since November of last year. Oman exports crude oil and energy products to China while also seeking to develop its renewable energy supply chains and digital commerce. The Sultan highlighted the potential for new avenues for trade and investment through the proposed agreement.
Last week, China's Foreign Ministry announced that the country would soon dispatch special envoys to the Middle East. The envoys are intended to promote engagement and de-escalation in the region. The Sultan's arrival in Beijing was marked by a formal welcome on the tarmac by People's Bank of China Governor Pan Gongsheng.
The Sultan also emphasized the importance of cooperation between investment and financial institutions. He stated that the proposed trade and investment agreement would facilitate and enhance commercial exchanges between the two nations. This diplomatic engagement coincides with China's stated commitment to contributing wisdom and solutions to the region's security dilemmas.
