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    China Business
     Oct 25, 2012


Page 2 of 2
China, Qatar forge tricky partnership
By Chris Zambelis

Qatar's role as a base for US military forces has proved indispensible toward executing and sustaining the US-led wars in Iraq and Afghanistan and other military operations in the region. Qatar would be instrumental in any potential US attack against China's ally Iran.

Qatar has leveraged the massive revenues it derived from its energy exports to branch out into other fields, including media, culture, business and global finance. There are only about 300,000 Qatari citizens; a large majority of Qatar's 1,800,000 inhabitants are foreign nationals who comprise its labor force.

On account of its energy riches and small population, Qatar boasts the world's highest per capita gross domestic product. When adjusted for purchasing power parity, Qatar's per capita

 

income exceeds $88,000, making it the world's richest country.

The Qatari royal family owns and operates the al-Jazeera satellite television network, an enterprise that has revolutionized media in the Middle East and pushed the boundaries of political discourse in the Arabic-speaking world. Similarly, through its English-language programming, al-Jazeera has succeeded in capturing a global audience. Qatar also fashions itself as a global business and investment hub.

Just as important, Qatar has channeled its economic influence effectively through the QIA and other state-led investment mechanisms. The QIA purports to hold more than $100 billion in assets, including interests in China. In August, QH purchased a 22% stake in Citic Capital Holdings, a Chinese private equity firm, for an undisclosed figure. The QIA owns $2.7 billion in shares of the Agricultural Bank of China, the third-largest Chinese bank.

Through initiatives such as its Qatar Foundation (QF), the emirate also has set out to fashion itself as an advocate for technological and scientific innovation, social and economic development, political liberalization, philanthropy, cross-cultural dialogue, women's rights and other worthwhile goals in the Middle East and around the globe [2].

The popular Doha Debates and Education City are among the QF's most widely cited success stories. The QF also has helped build bridges between Qatar and China through cultural and educational exchanges. For example, a delegation of Chinese Muslims attended the QF's Faculty of Islamic Studies conference on Islamic Economics and Finance last December.

Despite its formidable economic influence and effective application of soft power, it is Qatar's foray into regional geopolitics that has perplexed Middle East analysts. The Qatar that bestows a contemporary and cosmopolitan image is replete with contradictions.

Qatar is a leading proponent of the militant Salafist and Wahhabi ideologies that have helped guide al-Qaeda-style radical Islamists. A onetime vocal proponent of the Palestinian cause, Qatar also hosted an Israeli trade office before shutting it down in response to Israel's invasion of Gaza in 2008. It also was widely criticized for its alleged exploitation of al-Jazeera to advance its foreign policy goals.

Despite Qatar's alliance with the United States, al-Jazeera provided a platform for dissenting positions on US foreign policy and authoritarian regimes to be aired across the Middle East - actions that led to numerous closures of its offices by angry governments. China already has confronted al-Jazeera over its coverage of Chinese affairs. A documentary titled Slavery: A 21st Century Evil produced by al-Jazeera English and aired in May examined the issue of forced labor around the world and devoted a segment to Chinese prison labor. In response, China refused to renew the visa of al-Jazeera English's only correspondent in the country, prompting the station to shut its office. Al-Jazeera's Arabic bureau in China, however, was not affected by the decision.

Qatar has interjected itself into the diplomacy between the United States and the Taliban by allowing the Taliban to open a diplomatic mission in Doha - possibly giving Beijing an alternative to working through Pakistan to deal with the Taliban.

Qatar has traversed a fine line that divides the United Sates and its Arab allies, especially the GCC, on one side and their rival Iran on the other. In a general sense, Qatar's stance toward Iran benefits China. Beijing depends heavily on imports of Iranian oil and is exploring ways to exploit Iran's natural gas reserves. As a result, China is loath to see the United States (or Israel) attack Iran.

In contrast to Saudi Arabia, for example, Qatar has taken a much softer line toward Iran overall - a position reflected in al-Jazeera's coverage of Iran's nuclear program. With the onset of popular unrest in the Arab world, al-Jazeera's editorial line is widely seen as having shifted in tone to accommodate Doha's interests, damaging the network's credibility for many.

Qatar has been on the forefront among its fellow Arab League members, namely Saudi Arabia, in lending financial and military support to the political and violent strains of the Syrian opposition. It even has called for military intervention in Syria.

A contingent of Qatar's tiny army and air force fought alongside the insurgency and North Atlantic Treaty Organization forces that eventually toppled Libyan Colonel Muammar al-Gaddafi. Despite official denials, Qatar is also believed to have doled out millions of dollars to the numerous Islamist political parties and movements that have contested elections in countries such as Libya, Tunisia, and Egypt, particularly entities competing with foreign-supported factions.

Qatar also has exploited the regional tumult to further enhance its image as a bastion of political and economic stability for foreign investors and members of the international community wary of the ongoing instability in the Middle East.

Conclusion
The dynamics behind Sino-Qatari ties in the energy and financial sectors suggest both countries stand to gain a great deal by further cooperation. At the same time, their respective positions on key issues diverge, including on the uprisings in the Middle East and the crisis in Syria. China's principled advocacy of non-intervention in the affairs of other nations clashes with Qatar's activist foreign policy and call for armed military intervention to oust the Syrian regime.

Sheikh Yusuf al-Qaradawi, an Egyptian Islamic cleric based in Doha who is best known for his weekly television program on al-Jazeera, called on Muslims to boycott Chinese products to protest their continued support for the Ba'athist regime at the United Nations.

China and Qatar were also on opposing sides during the conflict in Libya. Qatar does not shy away from exercising its clout by defying more powerful actors and recalibrating its foreign policy to further its own objectives. These aspects of Qatar's behavior in recent years will present China with an interesting set of dilemmas should their mutual interests deteriorate down the line.

Notes: 1. For more background on Qatar Holding (QH), see its official website, www.qatarholding.qa. For information about the Qatar Investment Authority (QIA), see its official website, www.qia.qa.
2. For more background on the Qatar Foundation (QF), see its official website, www.qf.org.qa.

Chris Zambelis is an analyst and researcher specializing in Middle East affairs with Helios Global Inc, a risk-management group based in the Washington, DC, area. The opinions expressed here are the author's alone and do not necessarily reflect the position of Helios Global.

(This article first appeared in The Jamestown Foundation. Used with permission.)

(Copyright 2012 The Jamestown Foundation.)

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