China is struggling to maintain good relations with all countries of the Gulf, both Arab and Iran, even if it is under great pressure from the Americans to support the American demand for sanctions on Iran over its nuclear programme. The Chinese do not share American concerns over Iran, and they place a lot more importance on steady economic growth in China, which requires steady supply of oil from the Gulf.
The Chinese know they need better relations with the Arab states in the Gulf. They get more than half of their oil from the Gulf: Saudi Arabia is China's largest supplier of crude, and China is about to overtake the US as the biggest buyer of Saudi oil; and Qatar recently became China's largest supplier of liquefied natural gas.
It would make a lot of sense to convert the increasingly important economic relationship between China and the Gulf into a more strategic understanding of what both sides want. This is the background to this week's highest-level Chinese visit to the Gulf since 2009. Premier Wen Jiabao who is in Saudi Arabia, will visit Qatar, and the UAE, where he will speak at the World Future Energy Summit.
But even if the Arabs and the Chinese manage to find a closer working relationship, the Americans will still want Chinese support for sanctions on Iran, despite its reluctance. China knows that once the present crisis blows over, Iran will still be an important oil producer with which China needs to have good relations.
Nonetheless, the three Gulf states which will host Wen this week have a chance to make sure that he knows that they value a long-term relationship with China, which is of great importance to both sides, and is an important contributor to the general stability of the world.
