U.S. President-elect Donald Trump is not a fan of the Biden administration's climate legislation known as the Inflation Reduction Act (IRA), describing it as a "green scam." Trump has promised to repeal it, which will undoubtedly be welcome news in Indonesia.

Indonesia is home to the world's largest nickel reserves, a critical ingredient for manufacturing EV batteries. But the IRA aims to limit China's role in the battery supply chain, presenting a huge headache for Indonesian nickel suppliers given the outsized role that Chinese smelters play in the country's mining sector.

Putra Adhiguna, managing director at the Energy Shift Institute, an independent non-profit energy finance think tank in Jakarta, joins Eric to discuss Indonesia's uncomfortable position squeezed between China and the U.S. in the race to dominate transition mineral supply chains.

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Chinese contractors have been renovating the Ream Naval Base in Cambodia for the past two years, leading to widespread suspicion that the upgraded facility could eventually serve as a future outpost for the PLA Navy in Southeast Asia.

Despite compelling evidence that Chinese naval forces have been stationed at the base for much of the year, both the Chinese and Cambodian governments deny these claims.

Christopher Woody, an independent defense journalist based in Bangkok, argues that while it seems the Chinese military is set to maintain a presence at the base, it may not resemble a traditional military installation.

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U.S. President-elect Donald Trump has already indicated that the Middle East is going to be a central focus of his second term's foreign policy. He's already named Elise Stefanik, a fiercely pro-Israel lawmaker, to be his ambassador at the United Nations and he's been in regular contact since his election last week with both Arab and Israeli leaders.

But Trump is coming back to power at a time when the region is very different than when he left office in 2020. Back then, China was a marginal player in Mideast diplomacy which is no longer the case. China's economic and diplomatic influence in the region has increased significantly over the past four years.

In this special edition, produced in partnership with The ChinaMed Project, Eric hosts six of the world's leading China-Mideast scholars to discuss their forecast for how Donald Trump's re-election will impact U.S.-China relations in the region.

The conversation is divided into two parts:

Panel 1: How the arrival of a new U.S. President fits in the national strategies of regional actors and their relations with China

• Ahmed Aboudouh is the head of the China studies unit at the Emirates Policy Center and an associate fellow at the Chatham House in London.
• Gedaliah Afterman is the head of the Asia-Israel policy program at the Abba Eban Institute for Diplomacy and Foreign Relations and a lecturer at Reichman University and Tel Aviv University.
• Jonathan Fulton is an assistant professor of political science at Zayed University in Abu Dhabi and a nonresident senior fellow for the Atlantic Council's Middle East Programs and the Scowcroft Middle East Security Initiative.

Panel 2: How a new US President will/might shape US-China relations in the Middle East

• Dawn Murphy is an associate professor of national security strategy at the U.S. National War College.
• Zhang Chuchu is an associate professor of international relations in the School of International Relations and Public Affairs at Fudan University in Shanghai and she is the deputy director of the Center for Middle Eastern Studies at Fudan University.
• Mohammed Al Alsudairi is a lecturer in politics and international relations of the Arabic speaking world at the Australian National University in Canberra.

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There's been a lot of talk in recent years about the new "small and beautiful" doctrine that now guides China's Belt and Road Initiative. The problem is that a lot of people still do not understand what it actually means in practice.

President Xi Jinping first unveiled the concept at the Third Belt-and-Road Symposium in 2021 when he said that China's overseas development finance would focus more attention on "better connectivity" for telecommunications, energy, and financial services.

China has also had to scale down its financing of large-scale infrastructure projects because of economic challenges at home and debt sustainability issues among borrowing countries.

Lui Kanyi, a Beijing-based project finance lawyer and head of China at a large international law firm, has been closely following the transformation of the BRI for many of his Chinese clients. Kanyi joins Eric & Cobus to discuss the "small and beautiful" trend and what people should know about the future direction of the BRI.

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Even though the five countries in Central Asia are among the world's largest fossil fuel producers, the region faces chronic electricity shortages due to a lack of refining capacity. The energy crunch is further compounded by a reluctance to become overly dependent on Russian fuel.

To solve both problems, several Central Asian governments are looking to source renewable energy technology from China. While wind and solar still account for a small share of Central Asia's total energy production, that may soon change as more affordable Chinese green tech enters the market.

Yunis Sharifli, an independent Eurasia foreign policy analyst, recently explored this trend in an article published by the Carnegie Endowment for International Peace. Yunis joins Eric & Cobus to explain the geopolitics powering the green energy transition in Central Asia.

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India and China have reached a deal to de-escalate tensions along their bitterly disputed border in the Himalayas, potentially ending a contentious four-year stand-off between the two Asian powers.

Indian Foreign Secretary Vikram Misri said on Monday that the two countries agreed to conduct joint military patrols along the border known as the Line of Actual Control. No details of the pact have been released and the Chinese government has yet to comment on the arrangement.

If the two countries have, in fact, agreed to pull back their forces and disengage, it would have wide-ranging geopolitical consequences throughout Asia. Sushant Singh, a lecturer in South Asian studies at Yale University and contributing editor of The Caravan magazine in New Delhi, joined Eric & Cobus to discuss the ramifications of de-escalation along the Sino-Indian border.

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Chinese Premier Li Qiang is in Pakistan this week to get ties with its South Asian neighbor back on track after a series of terrorist attacks this year. The latest incident occurred earlier this month near the airport in the southern port city of Karachi when separatist militants with the Baloch Liberation Army (BLA) killed two Chinese nationals in a suicide bombing.

Pakistan has vowed to crack down on the militants but, so far, to little avail. In turn, Beijing has become increasingly frustrated with Islamabad's inability to better protect Chinese interests in the country.

Eram Ashraf, a China-Pakistan relations scholar, explained in a column published in The Diplomat how the violence is taking a toll on this vital Chinese diplomatic relationship. She joins Eric & Cobus to explain what's at stake for both sides if the Pakistani government can't contain the BLA.

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Chinese lending to African countries rebounded in a big way in 2023 after seven consecutive years of decline. Last year, Chinese lenders approved loans totaling $4.61 billion to African borrowers, a dramatic increase over the $922 million lent in 2022, according to Boston University's Global Development Policy Center (GDPC).

In the past, China lent billions to countries like Kenya and Nigeria to build massive infrastructure projects like ports and railways. That is no longer the case today as Chinese lending focuses on smaller, more sustainable initiatives, mainly in the energy, telecom, and logistics sectors.

Kevin Gallagher, director of the GDPC, and Diego Morro, a data analyst at GDPC, join Eric & Cobus to discuss the latest trends in Chinese development finance in Africa and a few of the surprises their research uncovered about which countries are getting the most financing.

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The rapidly escalating conflict between Israel and Hezbollah in Lebanon prompted a strong reaction from the Chinese government this week. Chinese Foreign Minister Wang Yi met with his Lebanese counterpart Abdallah Bou Habib on Monday at the UN in New York and condemned Israel's actions as “indiscriminate attacks against civilians."

It's notable, though, that neither Wang nor other Chinese officials made any mention of Hezbollah's missile strikes on targets in Israel, including those that hit civilian areas.

The deteriorating security environment in the Middle East is a critical time for China, which is transitioning from a strategy of "hedging" to one that is increasingly focused on "wedging."

Jonathan Fulton and Michael Schuman, senior nonresident scholars at The Atlantic Council in Washington, D.C., join Eric & Cobus to discuss their new report on China's Mideast strategy and Beijing's new regional priorities.

SHOW NOTES:

• The Atlantic Council: China’s Middle East policy shift from “hedging” to “wedging” by Jonathan Fulton and Michael Schulman: https://tinyurl.com/286pyh3o
• Subscribe to The China-MENA Newsletter by Jonathan Fulton: https://chinamenanewsletter.substack.com/
• Subscribe to The China-MENA Podcast on Spotify: https://tinyurl.com/256tdywu

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For much of the past thirty years, since the end of the Cold War, the United States has been largely unrivaled in its power in the Middle East and the Persian Gulf. Today, that is no longer the case as the U.S. faces new challenges both from regional powers like Iran and Saudi Arabia as well as international competitors, including China and Russia.

This transition to multipolarity is transforming the region and served as the thesis of a special edition of the academic journal Middle East Policy that came out earlier this year.

Three of the journal's editors on this project, Andrea Ghiselli from Fudan University in Shanghai, University of Naples China scholar Enrico Fardella, and Durham University international relations professor Anoushiravan Ehteshami, join Eric to discuss how the different countries in the region are adapting to the Sino-U.S. rivalry.

SHOW NOTES: Download the Spring 2024 edition of Middle East Policy (you'll need institutional access or have to pay a small fee): https://bit.ly/3XvvLUm

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JOIN US ON PATREON! Become a CGSP Patreon member and get all sorts of cool stuff, including our Week in Review report, an invitation to join monthly Zoom calls with Eric & Cobus, and even an awesome new CGSP Podcast mug! www.patreon.com/chinaglobalsouth