By James McKee
As the United States experiences worsening relations with the Middle East China is nurturing their influence and trust with the desert nations. In the Gulf there sits a Chinese strip mall that attracts shoppers from hundreds of miles in every direction. Selling a vast variety of goods at very low prices the Chinese are making a huge impression on the Arab people. China’s Dragon Mart goes a long way in assuring the Arab people that China is invested in their economy and their society at large. This goes a long way in cementing some very needed influence for China who is fast approaching the world’s position as its next superpower.
When this occurs will surely find close ties with the Middle East to be quite advantageous to China’s position globally should they in fact seize power. A steady oil supply is key to the success of any Western or ruling nation where the world at large is concerned. China is working very hard to preserve its place in the Arab world as a trusted ally and business partner. One has to wonder what China’s place will be in the Middle East once the regime changes have run their course in Egypt and Libya.
The prices seen at the Dragon Mart are far less expensive than those seen for Chinese products in Western countries. Western currencies including the USD will be at odds if China solidifies ties with the Arab world to the point of achieving favoritism. At this point China would receive cheaper oil and as a result their country’s operations would be more affordable and able to directly compete with the likes of the United States. The Forex market could see very real changes in the value of all major currencies if China does in fact begin receiving discounts on its fuel from the Middle East; China is quick becoming Japan’s chief importer which will bolster the Japanese Yen (JPY) once China’s demand increases further.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
