China "Worried" About Middle East Situation

Following mass Israeli bombing throughout Gaza, China has called the situation "worrisome" and "very serious" with regards to trade flows and security, with the situation close to spilling out into other countries.

China envoy Zhai Jun recently visited the Middle East and noted the conflict along the Israeli-Lebanese and Israeli-Syrian borders.

This has made "the outlook worrisome," he said.

China is a key global figure in such global fractures as it is a largely neutral superpower.

Zhai called on the international community to be "highly vigilant" and to take immediate action urging parties concerned to strictly abide by international humanitarian law and avoid a serious humanitarian disaster while putting in "joint efforts to control the situation".

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Zhai was also quoted as saying that China is willing to do "whatever is conducive" to promote dialogue, achieve a ceasefire, and restore peace.

Zhai made the statements after the US said it was willing to 'retaliate' against any insurgents who targeted its forces, while Iran has also warned Israel to curb its bombing campaign else the situation will "get out of control".

Impacts on the Supply Chain

Amid the tragic loss of human life under Israel's prolonged bombing campaign in Gaza, we are seeing a thawing of relations reverse between Israel and its Middle Eastern neighbours.

Saudi Arabia had been on the cusp of a 'normalization' process with Israel that would've seen more trade, technology sharing and cultural exchange between Israel and the Middle East, yet now that process seems highly jeopardised.

US President Joe Biden accused Hamas of intentionally scuppering that deal, while Saudi Arabia is said to be wary of any potential deal and has 'engaged' with regional competitor Iran.

Saudi Arabia is also continuing with plans as normal with its Future Investment Initiative set to start on October 24, 2023.

The conference, which is dubbed 'Davos in the desert' after the World Economic Forum event in Davos Switzerland, will see the world's financial heavyweights descend upon Riyadh to set the global agenda for the financial sector.

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