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Strategic Hedging and China’s Economic Policy in the Middle East

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  • Mohammad Salman

    (Brussels Institute of Contemporary China Studies (BICCS) Vrije Universiteit Brussel (VUB), Belgium)

  • Gustaaf Geeraerts

    (Brussels Institute of Contemporary China Studies (BICCS) Vrije Universiteit Brussel (VUB), Belgium)

Abstract

This study presents the strategic hedging framework as a way to trace the determinants of the foreign policies of hedging states. We use the case of Chinese energy security strategy in the Middle East as an illustrative case study. It first uses four criteria to establish that China’s energy security strategy in the Middle East is a strong example of strategic hedging behaviour. Then it examines the impact of oil production in the Middle East countries on the growth of Chinese economic relationships with these countries. The results of this study show clearly that oil production plays an important role in the Sino-Middle East relations. We find a positive relationship between oil production in Middle East countries, on the one hand, and the distribution and growth of China’s trade and investment with these countries, on the other hand. These results confirm that strategic hedging behaviour leads to developing China’s economic relations with the oil-producing countries in order to cover its growing needs for energy to support its economic growth. This article represents the first attempt to trace the impact of strategic hedging behaviour on the foreign policies of hedging states. Thus, it contributes to the support of the strategic hedging framework as a new theory in international relations.

Suggested Citation

  • Mohammad Salman & Gustaaf Geeraerts, 2015. "Strategic Hedging and China’s Economic Policy in the Middle East," China Report, , vol. 51(2), pages 102-120, May.
    • Handle: RePEc:sae:chnrpt:v:51:y:2015:i:2:p:102-120
    DOI: 10.1177/0009445515570440
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    References listed on IDEAS

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