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Malaysia’s respond.io achieves WhatsApp Business Solution Provider status; joins 150 global providers recognised by Meta

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Businesses can manage WhatsApp business profiles from one centralised platform
Will complement respond.io’s automated integration with over 5k third-party apps

Omnichannel customer conversation management platform respond.io achieved WhatsApp Business Solution Provider (BSP) status last month, joining the ranks of fewer than 150 BSPs across the globe. Local businesses using respond.io will now be…Continue Reading

"Hong Kong to emerge as stock exchange of choice” – Dealmaking experts | FinanceAsia

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In: Asia, Finance, South-East Asia

Former Securities and Futures Commission (SFC) senior director, Roger Cheng, is set to join UK-headquartered law firm, Linklaters, at its Hong Kong base from August.

The move follows his nearly five years of experience at the special administrative region’s (SAR) financial regulator, where Cheng oversaw the operations of the Takeovers Team. The law firm’s announcement pointed to the instrumental role that he played during this time, developing Hong Kong’s takeovers and mergers policy, as well as driving forward other listing-related progress.

Prior to his tenure with the SFC, Cheng spent 13 years at Slaughter and May.

Offering some thoughts around trends affecting dealmaking in Hong Kong and China, Betty Yap, Linklaters partner and global co-head of the firm’s Financial Sponsor Group shared that there had been a noticeable rebound of M&A activity in the region post-pandemic, though activity has not yet returned to pre-pandemic levels.

“Inbound investment into mainland China is still somewhat marred by geo-politics and recent regulatory changes,” she told FinanceAsia, adding that her team is optimistic around sectors less affected by national security concerns, such as the consumer segment.

“Interest from Middle Eastern investors in M&A opportunities in China has increased as relations between [both] continue to strengthen.  We are also seeing a number of sales by private equity (PE) sponsors in the market, as investments made in prior years mature,” she continued.

Her colleague, Hong Kong-based partner, Xiaoxi Lin, noted that recent financial stress in the Chinese real estate market has presented interesting M&A opportunity in Hong Kong, through the sale of prime commercial and residential properties to generate cashflow and service restructuring debts.

“A cocktail of factors including the distress in the PRC real estate sector, rising interest rates, and regulatory restrictions have meant that commercial banks are reducing their exposure to the real estate sector, including loans secured by residential and commercial properties,” Yap said.

“Credit funds – who are not subject to the same regulatory restrictions – are stepping into this funding gap,” she added, highlighting that while the current elevated interest rate environment means that borrowing costs are higher, credit funds are able to provide financing on the back of higher loan-to-value (LTV) ratios and can offer swift deal execution.

IPO dynamics

In terms of the IPO landscape ahead, Lin told FA, “Market participants are cautiously expecting a stronger HK IPO market this year with more companies listed than in 2022”.

Corporate partner, Donnelly Chan, added that Hong Kong’s recent introduction of the Chapter 18C regime – which reduces the listing requirements threshold for firms operating in new economy industries – together with recent China Securities Regulatory Commission (CSRC) reforms, is likely to support the market’s advancement.

“The track record and proven success of the pre-revenue Biotech listing regime and the weighted voting rights (WVR) listing regime since their introduction in 2018, coupled with the concession route for Greater China companies to secondary list on the main board has demonstrated the Hong Kong market’s flexible approach and readiness to evolve and explore opportunities,” he told FA.

Chan added that, as a result, it is hoped Hong Kong’s bourse will become “the stock exchange of choice” compared to other regional fundraising hubs.

Opportunity elsewhere

However, Yap is bullish on opportunity across the full breadth of Asian markets.

“For the remainder of 2023, we believe there will be continued interest in M&A opportunities in Asia,” she told FA.

“As inbound investment interest in China remains mixed given geo-politics, other single jurisdiction markets in Asia that can provide scale will be of interest to financial sponsor investors looking for efficiency in the deployment of capital.”

She pointed to markets such as India and Japan as benefitting from investor appetite – with the latter offering attractive costs “because of the lower yen”.

Yap added that Southeast Asia will continue to draw capital: “in particular Indonesia, with its relatively young demographics and the consumption power of its growing middle class.”

In terms of sectors, she noted that energy transition will remain of utmost importance “with interest in targets from renewables to electric vehicles to batteries to de-carbonising assets,” while digital infrastructure and data centre investment will continue to support the rise of e-commerce.

In the Linklaters release, head of Corporate, Sophie Mathur shared, “We are delighted to welcome Roger to our corporate practice. We are confident that his insights into takeovers and mergers regulations and policy matters will be of immense value-add to our clients when navigating take-privates and other public market transactions.”

Unlike the typical structure of a corporation, Linklaters employs a limited liability partnership which enables the firm’s partner leadership-base to make long-term strategic decisions for the business together.

Cheng’s appointment follows other key hires in Asia in recent months, including the appointment of Yoshiyuki Asaoka as corporate partner in Japan. In June 2021, William Liu was appointed as regional managing partner for Asia Pacific.

 

¬ Haymarket Media Limited. All rights reserved.

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Police bust scam ring in Chiang Rai

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In: South-East Asia

CHIANG RAI: Officers from Provincial Police Region 5 and Immigration Bureau have arrested a Chinese national and 12 accomplices for online scam charges.

Pol Lt Gen Piya Tawichai, Provincial Police Region 5 commissioner, said yesterday the arrest followed a tip-off about a gang of scammers operating in Chiang Rai city.

Armed with a search warrant issued by Chiang Rai Provincial Court on Saturday, the police joined forces with immigration police to raid a commercial building in tambon Rob Wiang, Muang district the same day, where they found the gang busy scamming victims on their computers.

Police arrested Chu Huaixiang, a Chinese national who was identified as the gang leader along with 12 members of his team, which includes both Thai and Chinese nationals. Police also seized computers found in the building.

Pol Lt Gen Piya said the gang initiated the scam by creating fake profiles on Facebook, using photos of good-looking people taken from the internet as the profile pictures. They set up Facebook groups named Tam Boon Online (“making merit online”) and “Tour Boon” (“travelling and making merit”).

Thai members of the gang would then send Facebook messages to anyone they found on social media. If they get a response, they will continue talking with the victim to gain their trust. After a while, the gang members would trick the victim into making a cash donation and ask the victim to download a mobile application named App.Shaoxiang.cfd.

The application, developed by the gang’s Chinese members, was touted to be an online merit making application. It features pictures of temples in Chiang Rai to create the illusion of legitimacy. However, all the money donated through the app was actually transferred to proxy bank accounts, said the police.

The gang were charged with fraud and inputting fake data into the computer system.

The police will expand their investigations to find out who are behind the proxy bank accounts, in a bid to find other people who are involved with the scam.

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Chinese held over B10bn cyber fraud

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A Chinese couple living in a 67-million-baht house in Bangkok were arrested yesterday for alleged multinational fraud, with damages estimated at 10 billion baht, the Cyber Crime Investigation Bureau (CCIB) said.

Shaoxian Su, 31, and his girlfriend Keyi Ye, 25, were taken into custody at their house in the Palazzo Srinakarin housing estate in Prawet district on charges of public fraud and money laundering.

Police from the CCIB impounded 1.5 million baht in cash, the title deeds for the house, ownership documents for four condo apartments in the Sukhumvit area worth a total of 128 million baht, and 14 Bearbrick dolls also found on the premises.

A CCIB spokesman quoted victims as accusing the couple of using fake online profiles to approach them via social media and enticing them into “invest in digital currencies and assets”.

Victims in Bangkok and Prachuap Khiri Khan told police they lost about 35 million baht. About 20,000 similar complaints were filed overseas, including the United States and the UK, which are believed to be linked to the suspects’ network. Total damages are estimated at 10 billion baht.

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SC seeks to transform agri sector via fintech, alternative financing

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Access to finance is critical to agriculture’s future, said SC chairman
Capital market could help Malaysia achieve its food security agenda

The Securities Commission Malaysia (SC) encourages the broader adoption of financial technology (fintech) in agriculture to help achieve the country’s food security agenda.
SC Chairman Awang Adek Hussin (pic) said access to finance…Continue Reading

Chinese couple arrested for alleged B10bn fraud

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In: South-East Asia
Police outside the couple's luxury Bangkok house during their arrest for international public fraud on Wednesday. (Photo: police)
Police outside the couple’s luxury Bangkok house during their arrest for international public fraud on Wednesday. (Photo: police)

A Chinese couple living in a 67-million-baht house in Bangkok were arrested on Wednesday for alleged multinational fraud, with damage estimated at 10 billion baht, the Cyber Crime Investigation Bureau said.

Shaoxian Su, 31, and his girlfriend Keyi Ye, 25, were taken into custody at their house in The Palazzo Srinakarin housing estate, in Prawet district, on Wednesday morning on charges of public fraud and money laundering.

Police from the Cyber Crime Investigation Bureau (CCIB) impounded 1.5 million baht in cash, the title deed for their 67-million-baht house,  ownership documents for four condominium apartments in Sukhumvit area worth 128 million baht and 14 Bearbrick dolls also found on the premises.

A CCIB spokesman quoted victims as accusing the couple of using fake online profiles to approach them via social media and enticing them into “investing in digital currencies and assets”. Local victims were in Bangkok and Prachuap Khiri Khan. They told police they lost about 35 million baht to the suspects.

There were about 20,000 similar complaints filed in other countries, including the United States and Britain,  believed linked to the suspects’ network. Total damage was estimated at 10 billion baht.

The couple did not have jobs. They often travelled abroad and had purchased Thailand Elite Cards, which made it easier for them, the CCIB said.

CCIB police also raided nearby luxury houses and impounded more assets they believed were linked to the suspects and their alleged crimes.

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Jennifer Lawrence's secret filming in Afghanistan

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Jennifer LawrenceGetty Images
By Megha Mohan
Gender and identity correspondent

“You only oppress women,” the young woman says to the Taliban fighter.

“I told you not to talk,” he shouts back, “I will kill you right here!”

“Okay, kill me!” she replies, raising her voice to match his. “You closed schools and universities! It’s better to kill me!”

A camera phone has secretly, and shakily, captured this direct confrontation inside a car between the woman and the militant.

She had just been arrested following a protest and was about to be taken to a holding cell in Kabul.

It is a scene from the documentary Bread and Roses, which explores the day-to-day lives of three women in the weeks following the takeover.

The producer is the Oscar-winning actress, Jennifer Lawrence, who is telling the BBC why this moment in the film is so significant to her.

“My heart was beating so fast watching these women defy the Taliban,” Lawrence says. “You don’t see this side of the story, women fighting back, in the news everyday and it’s an important part of our film, and the stories of these women.”

She says it is devastating to think about the sudden loss of control Afghan women have endured.

“They currently have no autonomy within their country. It is so important for them to be given the opportunity to document their own story, in their own way.”

The film has been made by Excellent Cadaver, the production company Lawrence set up in 2018 with her friend Justine Ciarrocchi.

“This documentary was born out of emotion and necessity,” says Lawrence, who describes feeling helpless and frustrated about what she was seeing on the news.

Ciarrocchi says that Lawrence “had a seismic reaction to the fall of Kabul in 2021 because the circumstances were so dire for women”.

“And she said, ‘We’ve got to give somebody a platform to tell this story in a meaningful way.'”

That somebody was Sahra Mani, a documentary maker who co-founded the independent Kabul production company, Afghan Doc House.

The all women team of documentary Bread and Roses

Excellent Cadavar

Both Lawrence and Ciarrocchi had watched her critically-acclaimed documentary A Thousand Girls Like Me, which profiles a 23-year-old Afghan woman who goes on national television to expose sexual abuse by her father, after being ignored by her family and the police.

Ciarrocchi tracked down Mani, who said that she had already begun a project, following three women in the country as they tried to establish some kind of autonomy in the months following the Taliban takeover, as girls and women were barred from universities and schools.

Mani filmed using covert cameras, and even asked the women to film themselves at safehouses with their friends and families.

Another sequence captures a secret meeting in a windowless basement, off a side street in Kabul. More than a dozen women sit in rows of desks and chairs, arranged like a makeshift classroom. Steam rises from the drinks in their plastic cups.

They do not know each other, but all are from different groups who protested after the Taliban retook Afghanistan in August 2021.

One of the women, a dentist called Zahra, has led the viewer to this secret meeting. When she speaks to the group, she reminisces about wearing high heels and perfume and going to the park with her friends. The women around her smile.

Then a writer named Vahideh starts speaking.

“Women must write their own history,” Vahideh says passionately to the group, to murmurs of agreement. “Women are not properly celebrated around the world.”

Mani was well aware of the challenges of filming in such private and dangerous situations.

“I understand how to deal with difficulties because I am one of them.

“They are not victims,” she says, “they are heroes.”

But getting the balance right between keeping the women safe and telling their story was not easy. She tells the BBC that there were several late-night conversations between her, Ciarrocchi and Lawrence during the production process.

“They were there whenever I faced any issues or problems,” Mani says. “When women unite, everything is possible.”

A woman in a veil holds her hand to her forehead, looking upset.

Sami Murtaza

With Mani and the other women featured now all out of the country, the producers felt comfortable submitting Bread and Roses for wider distribution, starting at Cannes.

Ciarrocchi and Lawrence say their next challenge is to get the film in front of a large audience – not always easy when the story is a snapshot of an ongoing and devastating conflict.

“There’s not an end to this story,” says Lawrence, “and you feel pretty much helpless when thinking about how to do anything about it. It’s a hard thing to market.”

As women executive producers, Ciarrocchi and Lawrence are still in the minority in Hollywood. A 2022 study from the Center for the Study of Women in Television and Film showed that women comprised only 24% of directors, writers and producers in the top-grossing films, a decrease from 2021.

“I think there’s a long, long way to go, but I do feel inspired and positive by the end product when you have more diversity in filmmaking,” says Lawrence. “It’s what people want. The audiences want it.”

Ciarrocchi adds: “That’s why we take the responsibility of Jen’s platform so seriously as a woman who’s giving opportunities to other women… to employ women, to tell women’s stories, to always employ a diverse body of people.”

“That’s also because I am a woman,” replies Lawrence.

“I’m lucky enough to not have the biased idea that women aren’t as good at things!”

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Exchanging views on crypto: Exclusive interview with Coinhako’s co-founder and CEO, Yusho Liu | cryptocurrency, crypto, coinhako, founder, exclusive interview, yusho liu, singapore, digital assets | FinanceAsia

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From the fallout of FTX in November 2022, to the collapse of Silicon Valley Bank (SVB) and other US lenders associated with start-up clients, the last few months have been challenging for the crypto industry.

Singapore-based cryptocurrency exchange, Coinhako, however, remains optimistic in terms of its industry outlook as sector participants focus on “rebuilding trust and faith” across the digital asset universe.

Coinhako was conceptualised in 2014 and started off as a bitcoin wallet service for Singaporeans. Today, it is a multi-currency trading platform for cryptocurrencies and is licensed, regulated and headquartered in the city-state.

Receiving its Major Payment Institution licence from the Monetary Authority of Singapore (MAS) in May 2022, the firm is one of nine financial institutions in the market permitted to provide Digital Payment Token (DPT) services.

Confident about Singapore’s future as a Web3 hub, its team wants to play a part in growing the market’s ecosystem. To do so, the company founders recently launched Berru.co, a separate entity that seeks to support Web3 start-ups as they navigate setting up in the city.

In this interview, Coinhako’s co-founder and CEO, Yusho Liu speaks to FinanceAsia about the challenges faced by the crypto industry; the future of Singapore as a digital asset hub; and where exactly the company has its sights set on next.

Excerpts from the interview have been edited for clarity and brevity.

FA: What’s your take on the cryptocurrency market and what developments are you focussed on?

2023 is the year of reset. With the developments of the last few months and bad actors bringing the industry back several steps, we need to rebuild trust and faith in the sector.

Beyond this, we are seeing more regulatory clarity from the likes of the Hong Kong and EU authorities, which paves the way for Asia and Europe to lead when it comes to innovation in the space.

Given that Washington’s current regulatory environment is less hospitable – coupled with the issues faced by the wider US tech industry, it will be challenging for innovation to emerge from the market.

FA: Was Coinhako exposed to any of the US banks that recently collapsed?

We had zero exposure to Silvergate and SVB. We did have some exposure to Signature Bank, but no money parked there. The collapse of these banks has affected many companies but thankfully, our strongest banking relationships are based in Asia.

FA: Is Coinhako looking to raise funds to expand further? How do you view the fundraising environment?

Overall, global and regional venture capital (VC) firms have poured record amounts of money into Southeast Asian technology companies because they consider them to be at the next frontier of growth and these countries have shown very high rates of adoption and interest in digital assets. They have focussed less on companies based in more mature, traditional markets, such as the US, Europe, China, South Korea or Japan.

However, it is currently a challenging climate and investments into crypto start-ups or in the broader technology space have slowed down. While we are continuing conversations with investors, we do not think this is the right timing or environment in which to be actively fundraising.

FA: Do you have any expansion plans?

We do have plans to expand, but this year our focus is on embedding deeper into Singapore, because we think the city-state is going to be a relevant crypto hub, regardless of what the rest of the world is doing.

We see a lot of Web3 founders building a nexus in the market. There is an influx of start-ups looking to establish their presence in Singapore and we’ve set up a separate, professional advisory entity, Berru.co, to support them. Since inception this year, we’ve connected with 10 or more clients and hope to grow this multi-fold further down the road.

Drawing on Coinhako’s experience since entering the market in 2014, we want to help founders navigate the crypto landscape. We’ve done the legwork and we know what works and what doesn’t – whether that be related to finance, accounting, tax or legal considerations. This is in line with Singapore’s status as a hub, and as such, we want to make sure that companies can develop easily. A bad user experience would likely make these founders consider going elsewhere.

FA: Where else in Asia do you see opportunity?

We are watching developments in Hong Kong, with the government having recently come up with a crypto framework to foster growth in the industry. But Hong Kong is just one of the markets we’re looking at for expansion, alongside other countries in Southeast Asian and the broader Asia region.

Coinhako has a domicile-registered licence in Singapore and the beauty of being based here, is that we can use it as a centre from which to reach the rest of the region.

FA: What’s your view on Singapore’s future as a crypto hub, given that many peers have relocated to Dubai?

I’ve always said that time will tell the story.

Dubai was a hot spot when its authorities announced updated licensing frameworks. But I think that, to date, we haven’t really seen or heard much about crypto exchanges moving to the market, except for Bybit, that is trying to establish global headquarters there.

The reality is that Dubai is a regional hub for the Middle East and North Africa (MENA), but if you’re trying to establish a global or Asian base, Singapore might be more suitable.

FA: Is Dubai perceived to be friendlier from a regulatory perspective, compared to Singapore?

I think it’s important to differentiate between what people say, versus what people do.

From our perspective, we don’t see many licensed entities going to Dubai, but we’re seeing unlicensed entities go there to try to obtain a licence.

FA: How optimistic are you about the growth of the Web3 and crypto industries in Asia?

We remain optimistic about the growth of the Web3 sector, in general. Yes, the industry is volatile, but most nascent industries are.

Of course, where money is involved, so too will there be bad actors. And indeed, we are seeing more overlap between the tech and finance industries.

However, as long as builders continue to come in to develop purposeful technology and applications – and good people enter the space, we remain positive.
 

¬ Haymarket Media Limited. All rights reserved.

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Can China broker peace in Yemen?

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After nearly a decade of grinding conflict, Yemen looks to be inching toward a peace deal.

Talks between the Houthi movement controlling much of the country’s north and Saudi Arabia, the regional power backing an anti-Houthi coalition in the war, are ongoing and being encouraged by international observers.

On May 1, 2023, the US announced that it had sent Special Envoy to Yemen Tim Lenderking to the Persian Gulf to “advance ongoing efforts to secure a new agreement and launch a comprehensive peace process.”

But the US has far less of a role in steering negotiations than Washington’s great global rival: China. The recent breakthrough in Yemen has been undergirded by a rapprochement between Iran and Saudi Arabia, facilitated by Beijing in March 2023.

As an academic who specializes in US and Chinese strategic engagement across eastern Africa and the Middle East, I appreciate that the diplomatic breakthrough brokered by Beijing has implications for the region. It has the potential to reduce rivalries and strengthen stability in Yemen, along with other countries prone to sectarian violence, including Lebanon and Iraq.

But it has also led to speculation over China’s emergence as a major regional player in the Middle East. The development not only challenges the United States’ long-established dominance in the Gulf, but it also raises questions about Beijing’s strategic agenda and motives.

Fragmentation and regional dynamics

It remains to be seen whether the Saudi-Iran breakthrough might contribute to a lasting peace in Yemen.

But given the role that the rivalry between the regional powers has had in fueling the fighting, international observers have expressed optimism.

The disintegration of Yemen began with the collapse of its central government in 2011 after the Arab Spring uprising. In 2014, the Houthi group, a Shiite militia backed by Iran, took control of the capital, Sanaa, and forced transitional President Abdo Rabbu Mansour Hadi to flee to Aden.

Hadi’s government struggled to establish itself in Aden and eventually relocated to Riyadh, Saudi Arabia, where he resigned in 2022.

Map: The Conversation CC-BY-ND. Created with Datawrapper

Viewing the Houthis as an Iranian proxy, Saudi Arabia intervened in the Yemeni conflict, backing those loyal to Hadi and bombarding Houthi areas from the air. These Saudi-led attacks contributed to a massive humanitarian crisis.

The conflict has resulted in the deaths of at least 377,000 Yemenis, the United Nations projected in 2021, many through indirect causes such as starvation and disease. It has also led to widespread displacement of civilian populations and the breakdown of infrastructure.

The country remains fragmented, with militias controlling separate territories and no functional central government.

China’s path through Saudi Arabia

So where does China come in? Beijing has no formal diplomatic, economic or political ties with any of the numerous militias that currently govern parts of the country. But before 2014, China had a healthy trading and economic relationship with Yemen. According to the World Bank, in 2013 China was Yemen’s second-largest trading partner after Saudi Arabia.

Since 2014, trade between China and Yemen persisted, albeit in a mostly informal manner. Data from the international trade-tracking Observatory of Economic Complexity indicates that China imported US$411 million worth of products, mainly crude oil but also copper, from Yemen in 2021. What remains unclear is which rebel factions have received revenue through the trade.

Meanwhile, China has maintained formal diplomatic and economic ties with Iran, Saudi Arabia and United Arab Emirates (UAE) – each of which back militias involved in Yemen’s war. In fact, China has been intensifying its economic and political connections with all three regional powers.

In recent years, Chinese leader Xi Jinping has visited both the UAE and Saudi Arabia to underscore Beijing’s growing role as a partner in the region. Xi also recently hosted Iranian President Ebrahim Raisi during a state visit to China.

What’s to gain from peace?

This expanding relationship with key players in the Yemeni conflict puts China in a unique position as a potential peace broker. Yet uniting the three regional powers around a common peace plan has to date proved difficult.

The UAE can influence Yemeni factions it has provided military and financial support to, including the “Security Belt” forces affiliated with the transitional government. However, the Emiratis’ goals may differ from those seeking a unified, independent Yemen. Since the conflict broke out, the UAE has displayed a tendency to undermine Yemen’s territorial integrity through, for example, taking control of some Yemeni islands, such as Socotra.

Similarly, Iran may be reluctant to accept any peace agreement that would diminish its influence in Yemen. Tehran’s relationship with the Houthis has not been as consistently solid as some outside observers suggest, but ties have grown as a result of the conflict. Should hostilities cease, the Houthis’ military dependence on Iran would decrease, diminishing Iran’s leverage.

Saudi Arabia, of the three, stands to gain the most from peace in Yemen. Cessation of conflict would likely halt Houthi attacks on the kingdom, save the Saudis money and resources dedicated to the Yemeni war, and potentially restore an international reputation tarnished by alleged war crimes in the conflict.

Yemen’s Houthi loyalists chant slogans during a tribal gathering in Sana’a on February 20, 2020. Photo: AFP / Mohammed Hamoud / NurPhoto

To broker peace in Yemen, China would presumably need to concentrate efforts on working with the Saudis.

The Chinese-backed rapprochement between Saudi Arabia and Iran could be a first step to this end. Although no direct mention of Yemen is made in the language of the agreement, it does talk of both sides’ support for “the non-interference in internal affairs of states” and “keenness to exert all efforts towards enhancing regional and international peace and security.”

And since that agreement in March, there has been progress toward peace in Yemen. A Saudi delegation led by the kingdom’s ambassador to Yemen held talks with Houthi leaders in Sanaa on April 9. The talks were the first direct negotiations between the two sides on Yemeni soil since the war began in 2015.

The thinking in Beijing

But why is China invested in what happens in an ongoing conflict far from its borders – especially when it is already consumed with perceived strategic and military threats closer to home?

The argument that a cessation of hostilities in Yemen would grant China economic benefits by providing access to the Bab el-Mandeb Strait – a key strategic channel on the Arabian peninsula for commerce and trade, with an estimated 4% of global oil supply passing through it – ignores some critical factors.

Rebuilding a war-shattered Yemen and establishing a stable government may take time – and the investment required to do so might outweigh short-term economic gains.

Moreover, China already has a military base in Djibouti, giving it access to the Bab el-Mandeb Strait even without peace in Yemen.

It could be that China is seeking to be seen as a global peacemaker as part of a strategy that has been referred to as “diplomatic whitewashing” – that is, making friends overseas and playing the “nice guy” to distract from China’s treatment of its Uighur minority at home and Xi’s increasingly confrontational posture on Taiwan and the South China Sea.

But it also fits a wider geopolitical trend. The counterbalance to China’s growing role in the Middle East is the declining influence of the United States in the region.

Priorities in Washington have shifted to strategic concerns in East Asia and Ukraine, leading to a diplomatic opportunity for China – one Beijing is seemingly keen to exploit.

Meanwhile, US relations with Saudi Arabia have cooled, in part due to the Yemeni war. And Washington has had no formal diplomatic relations with Iran for decades.

As a neutral player, China can engage with Tehran and Riyadh in a way the US simply cannot. That was evident in China’s role in the rapprochement, and it could be the case in resolving Yemen’s war.

For China, it provides opportunities for another diplomatic success from which it could emerge as a reliable partner in a changing geopolitical landscape.

Mahad Darar is a PhD student of political science, Colorado State University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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