China is the World's Largest Exporter to the Middle East

In early 2009, China overtook the United States as theBusiness TV, a cable television channel. The channel
world's largest exporter to the Middle East, havingbroadcasts throughout the Middle East via Nilesat. It
already raced passed the United Kingdom andruns regular English-language promotional spots for
Germany. It was the first time in over 60-years thatChinese products and services to the Middle East's
the number one ranking had changed. The eventtraders.
marked an important milestone in what is a rapidlyBut there is hope. Production costs in China are rising.
strengthening relationship between China and theLand and labor are all increasingly expensive. The
Middle East.Chinese currency is also appreciating in value. Nearly
But it is not Arab-style Wal-Marts who are responsible10,000 factories have closed down in the southern
for the flood of "made-in-China" imports. It is insteadGuangdong province, neighboring Hong Kong, during
individual Arab traders. Many of the traders can bethe past year. More factories will close as the
found in Yiwu, a small Chinese city four-hours south ofgovernment is no longer willing to prop up low-value
Shanghai. The city claims the world's largest wholesaleadded manufacturers.
consumer goods market selling the type of cheap giftsSyria will never replace China. But it only has to
and household goods that sell in low-cost retail storescapture a small share of China's trade with Europe to
across the world.benefit. Consider this. China's exports to Europe have
The number of Arab visitors to China surged as arisen $225bn in the past decade. If Syria had captured
result, filling up flights between Dubai and the mainjust 1% of this trade it would have added 0.5
Chinese cities of Guangzhou, Shanghai, and Beijing.percentage points to the country's GDP growth
The economic crisis has only intensified the trend. It'sannually, not to mention reduced chronic unemployment
no wonder. The Middle East's imports fromrates.
China are still growing, albeit in low single-digit figures,The upshot is that relations between China and the
even as the United States imports from China collapseMiddle East might be flourishing. Yet they are also
at near twenty percent rates relative to last year'sdelicately poised. The fact China has pushed the
levels. And Chinese manufactures are searching forUnited States aside as the Middle East's largest
new markets in the Middle East as a result. It is justsupplier will rattle doors in Washington. But it is
one more sign of the change in demand.important to look beyond the trade figures to the social
There are other signs of the growing strength in tradeand political implications of this increasingly complex
relations. Wang Weishang, a local entrepreneur, alsorelationship.
from the coastal province of Zhejiang, has set up Asia