Introduction: This research examines the neo-mercantilism of the US and China in the Persian Gulf region and Iran in relation to the fossil fuels energies. One of the recent developments in the Persian Gulf region is the widespread presence of China in the form of the New Silk Road. China depends on the fossil energy of this region and Iran to maintain its industry and economic growth. The US is also the great power that has made the region the arena of its energy competition and is unhappy with China’s presence there.

Research Question: The main question concerns how the New Silk Road project has affected the relationship between China and the US in the region in the field of energy in recent years?



Research Hypothesis: The hypothesis of this research is based on the fact that China needs huge energy and diversified its energy routs which has risen the US sensitivity.



Methodology (and Theoretical Framework if there are): In this paper, the qualitative research method for studying the hypothesis is based on analytical descriptive method. Data collection tools are libraries and internet resources. The proposed research theoretical framework is the neo-mercantilism which pays attention to economic development and increasing wealth of the great powers.



Results and discussion: Analyses in this research indicate that with less than five percent of the world’s population, America is the largest consumer of energy, especially oil. According to British Petroleum (BP), America has less than three percent of the world’s oil reserves. While it consumes 20 per cent of the world’s oil resources, the Persian Gulf, having rich energy resources, and is an important area for America’s neo-business. America has the largest shale gas reserves in the world. The increase in gas consumption is an incentive for the development of shale gas exploitation. America’s strategy is to reduce dependence on the Middle East energy, which shows the prospect of independence and self-sufficiency. But with this decrease in dependence on the energy of the Persian Gulf, the importance of the region does not decrease, because no other region in the world is as influential on the energy market as the Persian Gulf.

The increasing growth of China’s economy in recent decades has increased the need for energy imports in this country. By adopting a neo-business approach in the field of energy, China seeks to control and penetrate the markets of gas-bearing countries and emphasize long-term access. China’s strategy has been developed through state-owned energy companies, especially the China National Oil Company, to meet China’s energy needs within the framework of economic and commercial integration policies in the energy field. China has used various means to gain access to energy resources and influence in the Persian Gulf, some of which include acquiring stakes in oil and gas fields, diversifying energy suppliers, bilateral agreements, investing in hydropower, materials mining and energy infrastructure.

China is looking for an energy transmission corridor (like Iran, Oman, Pakistan, India and China) to supply energy and reduce dependence on dangerous routes and straits. Therefore, the initiative of the new Silk Road in the Persian Gulf is very important for China in terms of sea and land routes of energy transfer. In recent years, China’s emerging economy is heavily dependent on energy imports. Based on this, the issue of energy is effective for the cooperation between China and America. The Persian Gulf energy can be safely and quickly transferred to China through the pipeline. But America is still sensitive to the presence of other powers in the Persian Gulf. The Americans prefer the presence of other powers in the Persian Gulf, especially China, through them and to be aware of all the ongoing affairs.

Almost 75 per cent of China’s oil imports take place through the Middle East, but China is also thinking of alternative ways to create new routes by investing in infrastructure, finance and trade in Pakistan’s Gwadar port and connecting China to West Pakistan. In such a situation, Iran gains a special position. Iran has two options to participate in the new Silk Road, which includes securing the Strait of Hormuz and commercializing the Makran coast.

By following the policy of looking east and getting closer to China, the countries of the Persian Gulf are preventing the influence of America and European countries in their countries. Chinese politicians are willing to have natural partnerships in the fields of energy, financial investment, new technologies, space, language and culture with Arab countries, although China’s focus is on energy, technology and trade.

The initial reactions of China and America towards each other’s actions have been accompanied by caution. The Chinese cite US objections to try to stop China’s economic expansion. Some consider the New Silk Road as a response to America’s initiative to rebuild a better world. Although the parties have intense competition in this region and have recently tried to reduce the competition, there is no possibility of a military conflict in the Persian Gulf region.

China’s role in the Persian Gulf is not 100 percent confrontation and interaction, but a soft balance approach in the form of interaction. Competition and cooperation at the same time shows the success of this model for China. In terms of cooperation, stability in the region is important for China and the US, and the US military presence is important as long as it does not harm the security of the Persian Gulf.

Conclusion: Four factors have been involved for China and the US neo-mercantilism. First, America is one of the largest consumers of energy in the Persian Gulf, although today the production of shale gas has reduced dependence on the energy resources of the Persian Gulf to some extent, but it does not mean that the importance of the Persian Gulf region has decreased, because no region is as sensitive to energy prices as this region. China also needs more and more energy with the ever-increasing growth of energy.

Second, the new Silk Road initiative in the Persian Gulf is very important for China in terms of sea and land routes, and it also gives more stability to the energy-dependent economy of the Persian Gulf countries. China's infrastructural and commercial investments in Pakistan's Gwadar port and Iran's role in the commercialization of the Makran coast provide the basis for the movement of Chinese goods. By investing in oil and gas and exporting to China, Iran reduces the cost to China.

Third, China has started a wide relationship with the countries of the Persian Gulf, which limits the influence of America in these countries to some extent. The construction of the largest oil refineries in Saudi Arabia, extensive bilateral trade with the UAE, extensive investments in Qatar and the import of gas from Qatar, the construction of petrochemical plants and refineries in Kuwait are part of China's investments in the region, which are a strong barrier against excesses and monopolies. America's demand has created in the region and this has aroused America's sensitivity.

Fourth, the overall findings of the research show that China has adopted a soft balance approach in the form of interaction with America in the Persian Gulf, and America and China see their interests in maintaining the status quo and avoid radical policies with high risks, and America avoids endangering China's energy security in the Persian Gulf is denied.