ABSTRACT

While the economic crisis has thrown open many more opportunities, the Middle East's Look East policy in the economic realm also came at a time of regional introspection in the political arena, which was likely to shape international relations in the coming decades. The region realized that it requires American military power for protection in a volatile region, especially given perceived threats in the Arab Gulf from Iran. Beijing was keen to use Gwadar as a transit terminal for Iranian and African crude oil imports. A road, and eventually a pipeline, from Gwadar could give China the alternative energy route that it urgently needs and spur the development of its western provinces. China's shift from exporter to consumer market was seen as an opportunity for the Middle East to increase its share in the world's largest market, as well as play a pivotal role in re-exporting Chinese goods to European countries.