The Challenges of International Economic Partnerships in the Northern Economic Zone Project: The Kuwaiti-Chinese Economic Partnership as a Case Study.

This study aims to analyze the challenges that face the international economic partnerships in the Northern Economic Zone project, it specifically examines the economic partnership challenges with the most important rising and influential international powers, namely China. The study raises the following question: What are the most critical challenges that face the Kuwaiti-Chinese economic partnership in the Northern Economic Zone project? The study assumes that strained relationships and competition especially the economic and trade ones between the United States and China is one factor that may negatively impact the Kuwaiti-Chinese economic partnership in the project. Debt trap diplomacy that surrounded the Chinese economic deals with number of countries is another factor that may negatively impact the success of the Kuwaiti-Chinese economic partnership in the project. To answer its question and test its hypotheses the study applied the descriptive approach, and relied primarily on a field study, the study presents results based on six interviews with people involved directly in developing the project. These interviews were open-ended and each lasted two hours. The study concludes that rivalry between U.S. and China will cast a shadow on the project and it may put Kuwait in a situation where it has to choose either the investment and participation of its security partner, Washington, or the investment and participation of its economic partner, Beijing. So, the political decision maker should be prepared for a such situation by applying clear strategies aimed to balance Kuwait’s ties between the two partners and minimize the implications of this rivalry on the project’s success. The Chinese dragon participation in the project brings other additional challenges related to the nature and form of its economic deal, when negotiating with China regarding its participation in the project, Kuwait should take the lead regarding the nature, form, and limits of the Chinese participation in the project, and be cautious not to fall into debt trap diplomacy in order not to make compromises that negatively affect the success of the project and the state’s economic interest.