China And Mideast Expand Ties As Oil, Oil Money Seek Homes

Mideast oil producers are cash-flush with crude over $130 a barrel. That huge pool of liquidity is increasingly flowing to the world’s fastest-growing economy: China.

Some say that could lead to a big shift in global financial power.

In the last year, bankers in Abu Dhabi, Dubai, Saudi Arabia and other Persian Gulf nations have shown a growing interest in investing in China.

… Robert Lawrence Kuhn, a senior Citigroup adviser on China, says Chinese officials welcome such interest because the Mideast has what China covets: oil.

“Energy is crucial to China’s future,” Kuhn said, alluding to growing Chinese efforts to access new supplies of crude.

If China gives greater access to its lucrative markets to nations like Bahrain, it hopes to secure more stable supplies of oil in the future.

Investor’s Business Daily