China’s influence in the Persian Gulf region is increasing dramatically. In July 2020, Western media outlets reported that China and the Islamic Republic of Iran had drafted a tentative agreement that would significantly strengthen their economic and security partnership. Meanwhile, in August, reports indicated that Saudi Arabia, with the help of China, had built a previously undisclosed nuclear facility to extract uranium yellowcake.

Beijing’s actions coincide with increased trade and investment between China and other countries in the Persian Gulf, including Saudi Arabia. In fact, a closer look at the data shows that trade between China and Washington’s Persian Gulf allies, especially oil trade, far exceeds trade between China and Iran. By bolstering its economic influence in the region, Beijing hopes to augment its prestige and political power, thereby subverting the global leadership role of the United States.