Can Sino-Arabian business ties replace Sino-American ones?

WHEN CHINESEFIIPIFPIFPIFMAMALSEG and Middle Eastern moneymen meet, it is usually behind closed doors. Last month they mingled openly in the lobby of the Hong Kong Stock Exchange, at the “ Priority” summit, an event organised by the Public Investment Fund (), a $780bn vehicle for Saudi sovereign wealth. It was the first meeting of its kind in east Asia. It will not be the last. The announced it was planning to set up an office in China. Mubadala and the Investment Corporation of Dubai, two Emirati sovereign wealth funds, the Qatar Investment Authority and Kuwait Investment Authority are all said to be preparing to deploy more capital in the world’s second-biggest economy. They think they can to do this without angering the increasingly China-wary West. “We are friendly people, we are friends with everyone,” Jerry Todd, an executive at the , told the conference in Hong Kong.China’s investment firms and the companies they back need friends right now. As Sino-American geopolitics sour, American investments in China have collapsed. Chinese tech firms got $1.2bn from American venture capitalists in 2022, down from $14bn in 2018. Mergers and acquisitions (&) by American firms in China fell below $9bn in 2023, down from $20bn five years earlier. Meanwhile & deals by Gulf entities have ballooned—from next to nothing in 2019 to nearly $9bn in 2023, according to data from , a financial-information firm (see chart).