The Studies and Economic Media Center (SEMC) issued a new position paper titled “Trade and Investment Relations Between Yemen and China: Deferred Understandings Amid Geopolitical Conflict,” prepared by the SEMC’s Chairman, Mustafa Nasr. The paper examines the current state and future prospects of economic relations between Yemen and the People’s Republic of China in light of the ongoing war in Yemen and international competition in the Red Sea.
The paper reviews the trajectory of Yemeni-Chinese relations, noting that China is one of Yemen’s key trading partners. Yemen is viewed from a geopolitical perspective linked to maritime security and the Belt and Road Initiative, particularly given the strategic importance of the Bab al-Mandab Strait, through which approximately 12% of global trade passes.
It highlights that despite the complexities of the war in Yemen and overlapping regional and international interests, diplomatic relations between the two countries have remained relatively consistent in recent years. However, these relations have not yet evolved into broad economic and investment partnerships, due to the ongoing internal conflict, the multiplicity of local actors, and geopolitical competition among international powers in the region.
The paper also discusses the nature of official engagement between the two sides during the war since 2015, including high-level diplomatic meetings, China’s positions on the Yemeni conflict, and the controversy surrounding the alleged links between some Chinese companies and the Houthis, as well as U.S. sanctions imposed on them.
Additionally, the paper explores opportunities for Chinese investment in Yemen, particularly in the ports and infrastructure sectors, including recent reports of understandings to develop the Port of Aden in cooperation with Chinese companies. It confirms that these understandings remain preliminary and have not yet been formalized into official agreements with the Yemeni government.
The paper concludes that the future of Yemeni-Chinese relations may follow one of three main scenarios: accelerated economic and diplomatic cooperation if Yemen’s political and security conditions improve; increased international competition in the Red Sea, negatively affecting partnership prospects; or the continuation of the current situation, active diplomatic relations without translation into strategic projects on the ground.
SEMC emphasized that this paper is part of its ongoing research efforts to analyze economic and geopolitical transformations affecting Yemen, and to provide analytical insights that support decision-makers and enhance understanding of the opportunities and challenges shaping the future of Yemen’s economy and its international relations.
For more details click here:
http://www.yemenief.org/Download_Center/docment/doc_4154.pdf