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SEMC Issues Position Paper: Yemen and China – Deferred Economic Understandings


Mar - 16 - 2026   Download The Version

Relations between Yemen and China extend back nearly seven decades and represent one of Yemen’s oldest diplomatic relationships with a major global power. Over the past 10  years, however, these relations have undergone significant changes. Some of these shifts are linked to the internal war in Yemen, while others stem from the intersection of regional and international interests, particularly those of Saudi Arabia, Iran, and the United States of America.

China remains one of Yemen’s most important trading partners. Beijing views Yemen through a broader geopolitical lens associated with the security of maritime trade routes and the Belt and Road Initiative (BRI). This perspective is reinforced by the strategic significance of the Bab al-Mandab Strait and the Red Sea in global trade flows. Approximately 12 % of global trade passes through the Bab al-Mandab Strait, underscoring the region’s critical importance to international shipping and energy supply chains.

This strategic importance helps explain recurring reports about Chinese ambitions to invest in Yemeni ports, particularly the Port of Aden. Recently, statements attributed to the Chairman of the Aden Gulf Ports Corporation circulated in the media suggesting the existence of understandings to rehabilitate and operate the Port of Aden in partnership with a Chinese company, reportedly under the sponsorship of Saudi Arabia and the UK.

Despite China’s growing interest in Yemen, the continuation of the Yemeni conflict, the multiplicity of local actors, and the intensifying geopolitical rivalry between China and the United States, combined with the sensitivity of Beijing’s relations with Arab Gulf countries and Iran, have led China to adopt a cautious approach toward deeper economic or investment engagement in Yemen. 

Against this backdrop, a key question emerges: What are the prospects for transforming Yemeni-Chinese relations into a broader economic and investment partnership amid the ongoing war in Yemen and rising international competition in the Red Sea?

This paper also examines the evolution of Yemen–China relations, including official meetings between the two countries, China’s positions toward the various parties in the Yemeni conflict, U.S. accusations regarding alleged links between Chinese companies and the Houthi group, and developments related to cooperation in port infrastructure, particularly Aden. It further explores the future trajectory of Yemeni-Chinese relations, especially in the fields of development and investment.

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