US-China Economic Rivalry and Prospects for Peace in the Middle East

An economic interpretation of history suggests that war is a continuation of economic rivalry in pursuit of the object of desire in economics – economic rent. For the Middle East, competition for control of its vast oil reserves subjected it to the “natural resource curse” of under-development and conflict. The escalation of US-China competition to dominate the key technologies of the modern digital economy into a full-blown economic and technological war squeezed China in the markets of the United States and its allies, pushing China to alternatives, including the Middle East, where it now has a pervasive economic presence through the Belt and Road Initiative, which has provided it a platform for diplomatic engagement. While China’s rise has ceased to be peaceful, US-China competition in the region is, however, asymmetric, which is a positive for the Middle East itself