Q&A: Why China has become the Middle East's favorite customer

What does this mean for the US?

Middle Eastern governments generally prefer working with China because it doesn't tell them what to do. While the US pushes reforms, China does business.

"When we do business with you, unlike the United States, we aren't going to tell you about how you're supposed to democratize or how you're supposed to treat women," says Leverett, paraphrasing China's pitch.

But the Chinese cannot compete with America militarily. "The US is consequential in terms of security; there's nothing the Chinese will do to secure these countries," says Jon Alterman, director of the Middle East program at the Center for Strategic and International Studies (CSIS).

Why did China vote for UN sanctions on Iran?

Beijing is genuinely worried that a nuclear-armed Iran will spark an arms race in the Middle East, encouraging other nations such as Turkey to follow suit. That could endanger the flow of oil from two of China's top sources of crude: Saudi Arabia and Iran, which account for 20 percent and 11 percent of its oil imports, respectively.

Neither did Beijing want to irritate Washington, given that its ties with the US are by far the most important element in its foreign policy. Voting against the sanctions would have damaged the image China wants to project as a responsible player on the global stage.

Still, Chinese diplomats ensured during the five months of negotiations that preceded the sanctions resolution that the measure would not restrict foreign investment in Iran's energy sector. Absent most Western oil companies, Chinese firms have become the Iranian oil industry's most important source of investment and technology, and Beijing is keen to protect its huge investments in Iran.

Will China forsake the US for Iran?

China is now Iran's largest trading partner, and bilateral trade has almost doubled in the past five years (from around $10 billion in 2005 to more than $20 billion in 2009).

Still, that's less than 10 percent of China's trade with the US. In 2009, China's exports to the US totaled $221 billion, while imports stood at $77 billion. "The Chinese would be crazy to trade the US relationship for an Iranian relationship. What they want is to have a relationship with both," says Mr. Alterman. "[China] can get 95 percent of what they want at 5 percent of the cost if they can ... have the US do all the heavy lifting on security issues in the Middle East ... and let China reap the benefits and integrate itself."

Staff writer Peter Ford contributed from Beijing.

Related stories:

• At Shanghai Expo, Ahmadinejad polite despite China's support for Iran sanctions
• Iran sanctions: Which way will China go?
• All China news coverage

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