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Chinese President Xi Jinping on Tuesday pledged a package of $20 billion in loans and $1.6 billion in financial aid to countries in the Middle East, as part of what he called an "oil and gas plus" model to revive economic growth in the region.
Beijing has ramped up engagement in the Middle East in recent years as Arab nations play an important role in Xi's signature Belt and Road foreign policy plan for strong trade routes linking China with central and southeast Asia.
Development was key to resolving many security problems in the Middle East, Xi told a gathering with representatives of 21 Arab nations in the Chinese capital.
"We should treat each other frankly, not fear differences, not avoid problems, and have ample discussion on each aspect of foreign policy and development strategy," he said.
Israel on Monday imposed fresh sanctions on the blockaded Gaza Strip, including restrictions on the movement of goods and a reduction of the area off Gaza’s coast in which Palestinian fishermen are allowed to ply their trade. According to a statement released by the Israeli army, the Kerem Shalom border crossing will be closed in response to “incendiary kite attacks” by Palestinian activists.Israel says closing Gaza's main trade terminal in anti-Hamas crackdownThe restrictions mean goods entering the territory will face additional bureaucratic hurdles, while the export of locally-manufactured commodities will become more difficult.Humanitarian aid, including food and medicine, will be exempted from the restrictions, although this, too, will still require the army’s approval.The army statement did not say how long the Kerem Shalom crossing, which had served as Gaza’s only functioning commercial crossing, would remain closed.Palestinian activists have been flying incendiary kites and balloons over Israeli territory as part of ongoing popular demonstrations near the Gaza-Israel security fence.Since the demonstrations began on March 30, at least 137 Palestinian protesters have been martyred -- and thousands more injured -- by Israeli army gunfire.Protesters demand the “right of return” to their homes and villages in historical Palestine from which they were driven in 1948 to make way for the new state of Israel.They also demand an end to Israel’s 11-year blockade of the Gaza Strip, which has gutted the coastal enclave’s economy and deprived its roughly two million inhabitants of basic commodities.
Israel imposes fresh sanctions on blockaded Gaza
China would offer aid worth 1 billion yuan ($150 million) to Palestine to support economic development, besides providing a further 600 million to Jordan, Syria, Lebanon and Yemen, he added.
A consortium of banks from China and Arab nations, with a dedicated fund of $3 billion will also be set up, he said.
It was unclear what the relationship between the bank consortium, financial aid and the overall loan package would be.
The loans will fund a plan of "economic reconstruction" and "industrial revival" that would include cooperation on oil and gas, nuclear and clean energy, Xi said.
Israel is closing the Gaza Strip's main commercial crossing in a crackdown against the Palestinian enclave's dominant Hamas , Prime Minister Benjamin Netanyahu said on Monday."We will crack down immediately on the Hamas regime in the Gaza Strip. In a significant move, we will today shut down the Kerem Shalom (border) crossing. There will be additional steps. I am not detailing them," he told his parliamentary faction in broadcast remarks.
Israel says closing Gaza's main trade terminal in anti-Hamas crackdown
He urged "relevant sides" to respect the international consensus in the Israel-Palestine dispute, and called for it to be handled in a just manner, so as to avoid regional disruption.
China, which traditionally played little role in the Middle East conflicts or diplomacy, despite its reliance on the region for energy supplies, has been trying to get more involved in resolving long-standing disputes.
China says it sticks to a policy of "non-interference" when offering financial aid and deals to developing countries, which, coupled with development, can help resolve political, religious and cultural tension.
It applies this pattern of economic support, as well as a strict security regime, to its restive western region of Xinjiang. But rights groups have criticised the approach, saying the clampdown has further stoked, not eased, tension between the Muslim Uighur minority and the ethnic Han majority.