|
Item of Interest
October 15, 2008
|
SUSRIS
EXCLUSIVE
The Vital Triangle: China, the United States,
and the Middle East
Chapter Three - Saudi Arabia: The Pivotal State
Jon B. Alterman & John W. Garver
|
|
Editor's Note: This is the second and last of two excerpts from a new book by Jon Alterman and John Garver addressing the multi-dimensional relationships among China, the United States and the Middle East. You can find the exclusive SUSRIS interview with Jon Alterman published on October 13, 2008 and the first excerpt, the Introduction, through the links below.
Ordering
Info - "The Vital Triangle: China, the United States, and
the Middle East"
The Vital Triangle: China, the United States, and the Middle East
Chapter Three - Saudi Arabia: The Pivotal State
Jon B. Alterman & John W. Garver
|
Of all the Arab states finding themselves between the United States and China, Saudi Arabia is the most pivotal among them, and of all of the Middle Eastern countries, Saudi Arabia has courted China most assiduously. As mentioned above, King Abdallah's first overseas trip upon ascending the throne was to China.
His visit in January 2006 made him the first Saudi king ever to visit the People's Republic. In 2007, Saudi Arabia (along with Angola) was China's largest source of foreign oil, exporting more than a half million bbl/d. By the end of the decade, Saudi and Chinese officials expect that number to double. Saudi exports to China have grown remarkably quickly; as recently as 1995, Saudi Arabia ranked twenty-fifth among China's suppliers.
China is well positioned to build an energy partnership with Saudi Arabia. Relative to other energy producers, Saudi Arabia's energy development is well organized and well capitalized. It needs steady consumers rather than investment, and it is here that China provides a welcome alternative to the seemingly capricious consuming markets of the United States. Of the estimated 8.6 million bbl/d of petroleum liquids exported by Saudi Arabia, half of Saudi production currently goes to markets in Asia
(including
Japan, South Korea, China, and India), and the demand is growing [Figure 3.1 (Link below)]. In 2007, China imported an average of 500,000 bbl/d from Saudi Arabia. By comparison, Japan, Saudi Arabia's largest customer, imported an estimated 1.5 million bbl/d.
One of Saudi Arabia's most important needs is a market for its "distressed" medium-grade crude oil -- a viscous, acidic, often sulfurous product that Saudi Arabia has in abundance but that has very few takers on the international market. Also referred to as heavy crude, it sells at 15 to 25 percent discount over premium grades of oil, but there are a limited number of refineries that can transform it into products such as heating oil and gasoline. Building new refineries in the United States is virtually out of the question, because a range of environmental concerns. Heavy crude may constitute an increasing percentage of Saudi energy production in the future, particularly as its main fields grow old and as Aramco develops an offshore Gulf field in Manifa that aims to produce 900,000 bbl/d of heavy crude by 2011.
Saudi Arabia has been working to develop China's capacity to purchase and use Saudi heavy crude, investing in two refineries along China's coast. These investments include Saudi Aramco's pending purchase of a 25 percent stake in the Qingdao refinery in China's Shandong province, scheduled to refine 200,000 bbl/d by 2008. Aramco will also by in the primary long-term crude provider for the Quanzhou refinery in the Fujian province, scheduled to refine 240,000 bbl/d by early 2009. In addition Saudi Arabia is developing two new refinery projects in Saudi Arabia designed to handle the heavy crude for export, including 400,000 bbl/d facilities in Yanbu' on the Red Sea coast and Jubail on the Gulf coast that will receive crude oil from the Manifa offshore field beginning in 2011. Both sides evince a keen desire to create a steady and reliable commercial relationship based on Saudi Arabia's export of heavy crude.
|
This is not to say that the Saudis have turned against the United States, which remains both the world's largest consumer of oil and the principal destination for Saudi students studying abroad. Over the last decade of U.S. crude oil imports, Saudi Arabia has consistently been among the top five sources and in 2007 ranked second after Canada. Total U.S. gross imports were around 13 million bbl/d in 2007, and of that nearly 1.5 million bbl/d came from Saudi Arabia [Figures 3.2 and 3.3 (Link below)].
The Saudi government is also investing in the U.S. bilateral relationship. It is putting millions of dollars into scholarships for students to study in the United States, and government-to-government cooperation on a range of security issues remains intimate. But the U.S. demand for oil is relatively flat, and politics continue to complicate bilateral relations. For all of the closeness of the Saudi-American relationship, Saudis clearly judge it as increasingly insufficient to meet Saudi security needs. There is a growing sense that U.S. policymakers are making critical mistakes across the region that ultimately threaten Saudi interests, most importantly in Iraq. For their part, Americans have never judged the relationship to be more than a single piece in a very large global puzzle.
|
SECURITY
Where the United States remains preeminent in Saudi minds is in the area of security. The U.S.-Saudi defense relationship dates to World War II and actually predates the large-scale production of oil in Saudi Arabia. Most of the smaller Gulf sheikhdoms had established defensive ties to the United Kingdom decades before the discovery of oil; the Al Saud on the Arabian Peninsula were not only not part of the British domain, but they often threatened British power. It was the presence of UK defense relationships that helped protect sheikhdoms such as Bahrain, the Trucial States, and Transjordan in the 1920s from the advances of Saudi forces from the deserts of Najd in central Arabia, as the new kingdom of Saudi Arabia was defining its territorial scope. By the time they stopped, Saudi troops had brought Arabia's two greatest assets under Saudi control: the Muslim holy places of the Hijaz and what were swiftly discovered to be the oil-rich lands in the Eastern Province.
By the 1940s, the new Saudi state was potentially rich but in fact quite poor. With a huge strategic asset under its sands, it needed the protection of a great power it could trust. King Abdel Aziz ibn Saud chose the United States over the United Kingdom. President Franklin Roosevelt helped solidify that trust in 1943 when he extended Lend-Lease aid in exchange for permission to establish an airbase at Dhahran and
met ibn Saud on the Bitter Lake on the Egyptian coast in 1945. Even so, the relationship was somewhat distant and relatively straightforward.
It was not until a quarter century later that the U.S.-Saudi relationship became strategically vital for both countries. The sharp rise in oil prices in the early 1970s made Saudi Arabia a spectacularly wealthy place and consequently a suddenly far more influential one. The country's effective use of "the oil weapon" after the 1973 Arab-Israeli War thrust it into the leadership of the Arab world, which was still searching for a leader after the demise of Egypt's Gamal Abdel Nassar. U.S. trade with Saudi Arabia skyrocketed, mostly on trade in oil: from $2.6 billion in 1974 to $8.6 billion in 1976 to $10.2 billion in 1978. Equally important, Saudi decisions to pump or not to pump oil (in those days of plentiful excess capacity) had a material impact on the U.S. economy and thus on the political fortunes of U.S. politicians.
It was in this period that the U.S. military became intimately involved in supplying and training the swiftly growing Saudi military forces and also established an exceedingly close relationship with the National Guard, the tribal force close to the king. U.S. primacy in the region grew still further in the wake of the British pullout from the Gulf in 1971. The decades-long Saudi bet on the United States seemed vindicated.
|
But as the U.S.-Saudi relationship grew deeper, it also grew more complicated. King Faisal was a determined supporter of the Palestinian cause, and through the 1960s and 1970s the United States became a closer and closer ally of Israel. Differences over policy toward Israel (articulated in bitter Saudi opposition to the 1978 Camp David negotiations) helped highlight the stark differences between U.S. and Saudi society. Saudi Arabia in the 1970s was becoming a more cosmopolitan place, as earlier efforts to promote literacy, communication, and transportation in the desert kingdom had begun to yield fruit. Just as the oil embargo of 1973 had given Saudi Arabia a leadership role in the Arab world for the first time, it also created an intimate tie between a foreign policy issue and the Saudi populace. For the United States, the embargo took Saudi Arabia out of the category of curious, out-of-the-way places that happened to have valuable commodities and put it into the category of a potential threat to U.S. allies, global energy supplies, and U.S. ideals.
|
By the late 1970s, U.S. policy towards Saudi Arabia had become something that had to be explained, and Saudi behavior had become something that had to be excused. To Saudis, this felt like a strategic ally was going soft. The peril became even more pointed after the Iranian Revolution of 1979, which collapsed a decade-long "Twin Pillar" strategy of U.S. support for Iran and Saudi Arabia to "fill the vacuum" left by Britain's withdrawal from the Gulf. The renewed Iranian threat and attempt to "export" the Iranian revolution made the Saudis once again agonize over their security. President Jimmy Carter committed U.S. forces to the defense of Persian Gulf oil in
the aftermath of the Iranian revolution and the Soviet invasion of Afghanistan, but he had few forces to actually commit to that effort. The Carter Doctrine nonetheless signaled a strong U.S. commitment to the security of the Gulf. It was the Reagan administration that created those forces and gave substance to the U.S. commitment to Gulf security.
A new actor on the Saudi side also contributed to the deepening of U.S.-Saudi relations; an energetic and charismatic ambassador.
Prince Bandar bin Sultan became the Saudi ambassador to Washington in 1983 and quickly made himself a darling of the Reagan administration with its vigorous anti-Soviet efforts by helping to fund adventures in Afghanistan and Latin America and later cautiously opening ties between Saudi Arabia and Jewish American groups (and later Israel). This "extracurricular" assistance helped underline to American officials the strategic need for close ties to Saudi Arabia.
Still, the relationship was rocky. In 1981, Congress balked when
President Ronald Reagan proposed selling radar surveillance planes known as AWACS (Airborne Warning and Control System) to Saudi Arabia, and the president scraped by after a long and difficult political battle with Congress. The congressional battles have continued since, most recently with a proposed
$20 billion arms sale in 2008 meant to steel Saudi Arabia and other Gulf allies against a threat from Iran. A group of 93 House members quickly objected to the inclusion of $123 million worth of precision-guided bombs.
On internal security, U.S.-Saudi cooperation has been increasing dramatically -- not so much after September 11, 2001, but more after
May 12,
2003. On that date, and again on November 10, 2003, Saudi-based militants attacked foreigners' housing compounds in the Kingdom, killing dozens and sending a very clear signal that radical jihadis were a Saudi domestic problem and not merely a complication for Saudi foreign policy. The Saudi government embarked on a number of changes at home, ensuring that clerical voices fell into line, cutting funding for radical overseas activities, arresting scores, and imploring families to keep better track of their sons. But equally important, the United States dramatically improved its counterterror cooperation with Saudi Arabia, especially through the FBI, the U.S. State Department, and the U.S. Department of Treasury. Immediately following the May 2003 bombings in Riyadh, the FBI sent an investigative team to the Kingdom that cooperated with Saudi law enforcement and intelligence services to complete a thorough inquiry into the terrorist attack. Although concern has lingered, U.S. officials publicly praised the greater security cooperation and Saudi counterterrorism efforts as well as specific Saudi steps such as the creation of a Financial Intelligence Unit (FIU).
All of this suggests a vital role that the United States plays in security in Saudi Arabia -- from without and from within. China cannot begin to play a similar role. At the same time, however, there is also a growing sense of grievance against the United States that a more developed Chinese relationship helps slake. Saudis feel particularly aggrieved that U.S. visa policy tightened so profoundly after 2001, not only required all Saudis to appear in person to apply for a visa, but denying visas to many (especially young men), subjecting the entire process to capricious timing and decision making and subjecting many Saudis to secondary inspection or interrogation upon arrival in the United States. It is not coincidental, for example, that Saudi Aramco's annual training trip for up-and-coming managers in 2007 was held in China rather than the United States, in part to express displeasure over the persistent difficulties obtaining visas for Aramco engineers in years past.
Whereas the United States was the destination of choice for Saudi students abroad throughout the 1970 s and 1980s, an increasing number are now moving to other English-speaking countries and to Asia. Some Saudis lament the shift, especially those who were educated and lived in the United States.
A concerted push by the Kingdom has increased the number of Saudi scholarship students in the U.S. institutions to a new high of more than 10,000 -- more than twice what it was in the wake of September 11. Meanwhile, 400 Saudis now are slated to study in China, a number up from zero just a few years ago.
WEAPONS SALES
Weapons sales have been an important part of Middle Eastern states' relations with both the United States and China. The region is one of the world's top consumers of arms. Overall, the seventh highest defense spenders as a percentage of GDP are all in the Middle East, and a significant portion of this spending goes to arms purchases. Although the Middle East arms market contracted from 2002 to 2005, it nonetheless accounted for 39 percent of all arms transfers in the developing world, and the top customers were Saudi Arabia, the UAE, Egypt, Israel, and Kuwait. Weapons purchases have been a central component of defense strategies for the states of the Middle East, and the United States and China have been some of the leading providers of arms to the region. From 1995 to 2002, China supplied more than $1.2 billion dollars in military equipment to Iran, Algeria, Kuwait, and Libya. Yet three metrics have generally informed the arms relationships: quality, price, and political constraints.
The quality of the weaponry flowing into (and out of) the Middle East has been a function of the technology, price, and seller. The United States possesses the world's best military technology, and the demand for U.S. defense products has traditionally been strong. From 2003 to 2006, the United States accounted for 38 percent of total arms transfers to the region, and much of it has been for high-quality products unavailable elsewhere (the percentage represented a significant drop from the previous five-year period, as Western European and Russian exports expanded). China has rarely been a provider of high-tech weaponry to the Middle East, and the greater emphasis in recent years on advanced systems has hurt Chinese exports.
However, Chinese defense products have had an advantage over their U.S. rivals in price. Concerns about price are generally a reflection over budgets, and the region's poorer states may have been more inclined to purchase cheaper Chinese alternatives.
Finally, political constraints have been central in determining the flow of weapons into the Middle East. As consumers, there is a unanimous preference for simple commercial transactions that avoid political complications. The reality is that political concerns have played a major role at least in U.S. sales, and they have potentially made other partners more attractive. The relatively fewer political barriers that Middle Eastern consumers face in China may boost China's profile as a weapons provider to the region in the future, to the detriment of U.S. companies.
Yet given these metrics, no Middle Eastern state has opposed China's entrance into the weapons sales arena. States as diverse as Israel and Iran have sought to develop arms relationships with China, driven by the direct benefits to their militaries as well as the indirect political gains.
Aside from arms sales to Iran during the Iran-Iraq War, China has not become an alternative to the United States as a source of arms. Once the Iran-Iraq War was over, Russia quickly replaced China as Iran's preferred arms supplier. China has, however, occasionally served to remind U.S. officials that Saudi Arabia has alternatives to relying wholly on the United States for its weapons. In 1988, it was revealed that China sold Saudi Arabia 50 CSS-2 intermediate range ballistic missiles, which are capable of carrying a nuclear payload. Many in the United States viewed the act as a provocative one, and no Chinese deal of similar impact has been consummated since. Still, Saudi Arabia has become the third largest buyer of Chinese arms in the Middle East, lagging only behind Egypt and Iran. Compared with sales by the United States, Russia, and European states, Chinese sales were minor. Chinese arms were cheap and rugged, but so too were Russian arms. In terms of technological edge, European and U.S. weapons are superior to both, a fact that is recognized by Middle East defense procurement agencies.
Reprinted with permission.
Copyright 2008 by Center for Strategic and International Studies
|
Reprinted with permission.
Copyright 2008 by Center for Strategic and International Studies
About Jon B. Alterman
Jon Alterman is director and senior fellow of the
CSIS Middle East Program. Prior to joining CSIS, he served as a member of the Policy Planning Staff at the U.S. Department of State and as a special assistant to the assistant secretary of state for Near Eastern affairs. He served as an expert adviser to the Iraq Study Group (also known as the Baker-Hamilton Commission) and is a professorial lecturer at the Johns Hopkins School of Advanced International Studies.
Before entering government, he was a scholar at the U.S. Institute of Peace and at the Washington Institute for Near East Policy. From 1993 to 1997, Alterman was an award-winning teacher at Harvard University, where he received his Ph.D. in history. He also worked as a legislative aide to Senator Daniel P. Moynihan (D-NY), responsible for foreign policy and defense. Alterman has lectured in more than 20 countries on subjects related to the Middle East and U.S. policy toward the region.
He is the author or coauthor of three books on the Middle East and the editor of a fourth. In addition to his academic work, he is a frequent commentator in print, on radio, and on television. His opinion pieces have appeared in the
Washington Post, Los Angeles Times, Wall Street
Journal, Financial Times, Asharq al-Awsat, and other major publications. He is a member of the editorial boards of the
Middle East Journal and Transnational Broadcasting Studies and is a former International Affairs Fellow at the Council on Foreign Relations.
CSIS Profile - Jon B. Alterman
About John W. Garver
John W. Garver is a professor in the Sam Nunn School of International Affairs at Georgia Tech. He is a member of the editorial boards of the journals
China Quarterly, Journal of Contemporary China,
Issues and Studies, and Asian Security, and a member of the National Committee on U.S.-China Relations.
Garver is coauthor of seven books and more than 60 articles dealing with China relations. His books include
China and Iran: Ancient Partners in a Post-Imperial World (2006);
Protracted Contest: Sino-Indian Rivalry in the Twentieth Century (2001);
Face Off: China, the United States and Taiwan's Democratization (1997); the
Sino-American Alliance: Nationalist China and American Cold War Strategy in Asia (1997);
The Foreign Relations of the People's Republic of China (1993);
Chinese-Soviet Relations, 1937-1945; The Diplomacy of Chinese Nationalism (1988); and
China's Decision for Rapprochment with the United States (1982).
Dr. Garver has received grants from the Fulbright Foundation, the Smith Richard Foundation, the U.S. National Academy of Science, the U.S. Department of Education, the Chiang Ching-kuo Foundation, and the U.S. Institute of Pakistan Studies. He has lived in various part of China for more than six years, has traveled widely throughout Asia, has conducted formal research in a number of Asian countries, and is fluent in Chinese. He served in the U.S. Army from 1969 to 1971.
Ordering Info - "The Vital Triangle: China, the United States, and the Middle East"
Related Material:
-
SUSRIS EXCLUSIVE - The Vital Triangle: China, the United States, and the Middle East: A Conversation with Jon Alterman
-
SUSRIS Special Section - On the Bookshelf - The Vital Triangle: China, the United States and the Middle East - Jon Alterman & John Garver
-
SUSRIS EXCLUSIVE - Reforms and Relations: Perspectives on the Kingdom - A Conversation with Amb Chas Freeman - SUSRIS Interview - Oct 8, 2008
-
SUSRIS EXCLUSIVE - American Businesses and Saudi Opportunities: Missing the Action? - A Conversation with Khaled Al Seif
-
SUSRIS EXCLUSIVE - Understanding Saudi-US Relations: A Conversation with CSIS' Jon Alterman - SUSRIS Interview - May 21, 2008
-
President Bush's Trip to the Middle East Briefing by Anthony Cordesman and Jon Alterman of CSIS - SUSRIS IOI - May 14, 2008
-
CSIS Middle East Notes - Jon B. Alterman - May 2008
-
Views from the Middle East - Public Opinion in the Arab World - SUSRIS IOI - Apr 25, 2008
-
The Future of U.S.-Saudi Relations - Conference sponsored by CSIS and Asharq
al-Awsat
-
The New Silk Road - Afshin Molavi - SUSRIS IOI - Apr 10, 2007
-
U.S./Saudi/Chinese Five Billion Dollar Energy Deal - SUSRIS IOI - Apr 1, 2007
-
SUSRIS EXCLUSIVE - National Security Issues and the Saudi-US Relationship: A Conversation with Jean-Francois Seznec - SUSRIS Interview - Mar 12, 2007
-
Doubtful of the US, Saudi Arabia Begins Looking East - Jean-Francois Seznec - SUSRIS IOI - Sep 28, 2006
-
SUSRIS EXCLUSIVE - Strengthening the Relationship: Whose Job? - A Conversation with Chas W. Freeman, Jr. - SUSRIS Interview - Aug 14, 2006
-
The Arabs Take a Chinese Wife: Sino-Arab Relations in the Decade to Come - Chas W. Freeman, Jr. - May 29, 2006
-
With China It's Simply Business, Not a Clash of Civilizations - Tang Li - SUSRIS IOI - May 29, 2006
-
Saudi-Sino Relations: President Hu in Riyadh - SUSRIS NID - Apr 24, 2006
-
China Visit Wrap-Up - SUSRIS NID - Jan 27, 2006
-
King Abdullah Prepares for China Visit - SUSRIS NID - Jan 21, 2006
|
| |
|
|