Expert Analysis on Middle East Instability and Implications for US and China

Zongyuan Zoe Liu, a David M. Rubenstein Fellow at the Council on Foreign Relations, has published an analysis in Foreign Affairs examining the effects of Middle East instability on major global powers. Liu argues that increased regional turmoil does not directly benefit China, contrary to some assumptions.

The piece focuses on the Israel-Hamas war, which began on October 7, 2023, and has escalated into broader regional tensions involving groups like Hezbollah and the Houthis.

The conflict has disrupted global energy markets, with oil prices fluctuating due to attacks on shipping routes in the Red Sea and potential threats to Persian Gulf oil supplies. Liu's analysis highlights how these disruptions affect international trade and supply chains. Both the United States and China, as major importers of Middle Eastern energy, are exposed to these risks.

Liu emphasizes that the war's fallout extends beyond the region. The United States maintains significant military presence in the Middle East to protect allies and secure energy flows, while China relies on the region for a substantial portion of its oil imports. Disruptions could lead to higher energy costs worldwide, impacting economic growth in both countries.

The analysis also addresses China's diplomatic positioning. Beijing has called for ceasefires and positioned itself as a neutral mediator, but Liu notes that prolonged instability could strain China's economic ties with Gulf states. For the United States, the conflict diverts resources from other global priorities, such as competition with China in the Indo-Pacific.

The Israel-Hamas war has resulted in thousands of casualties and displaced populations in Gaza and Israel. International responses include UN resolutions and diplomatic efforts by the US, EU, and Arab states. Liu's piece underscores that neither superpower gains a clear edge from the instability, as both face shared challenges in maintaining global stability.