Egyptian President Hosni Mubarak and Syrian President Bashar Assad (AP)
Chinese imports from entire Middle East in 2006: $41.8 billion (5.3% of total imports; 32.9% increase from 2005)
Chinese imports from the six Persian Gulf states alone in 2006: $26.6 billion (3.4% of total imports; 32.9% increase from 2005)
Chinese exports to the entire Middle East in 2006: $40.2 billion (4.2% of total exports; 40.3% increase from 2005)
Chinese exports to the six Persian Gulf states alone in 2006: $1.8 billion (1.9% of total exports; 33.6% increase from 2005)
Chinese crude oil imports in 2006: $6.6 billion
Percentage of 2006 oil imports that originate in the Middle East: 58%
Expected total Chinese oil imports from the Middle East by 2015: 70%
Saudi Arabia
Saudi Arabia was China’s largest oil supplier until 2006, when Angola moved into the premier position. A planned 9% increase in oil imports from Saudi Arabia in 2007 may place it in first again. The two countries remain close business partners. China and Saudi Arabia have undertaken several joint business ventures, including building refineries in China and laying pipelines in Saudi Arabia. In 2006 China signed an agreement with Saudi Arabia allowing for greater access to Saudi oil markets in exchange for Chinese arms and technology.
Israel
China is Israel’s largest Asian market, with 2006 trade reaching $3.3 billion, a 28% increase from 2005. The majority of China-Israel trade is in telecommunications, high-tech equipment, machinery, and electrical equipment. China has been designated an “Israeli export target country” since 2005. The two countries have not been engaged in weapons trade since a 2005 deal folded under U.S. pressure, but there are signs that the Sino-Israeli arms relations may be warming.
Iran
Iran, the world’s fourth-largest exporter of oil, is China’s third-largest supplier. In the first four months of 2007, its exports to China have increased 11%. Chinese company Sinopec is currently in negotiations to become the first foreign company to own a majority stake of an Iranian oil field (the Yadavaran field, near Iran’s Iraqi border). The deal is worth $100 billion, and will provide China with 150,000 barrels of oil per day. China is also engaged in arms trade with Iran, and the appearance of Chinese-made weapons in Iraq and Afghanistan has caused concern.

