Facing a worsening economic crisis and with little chance of Western or oil-rich Arab countries providing assistance without substantial reforms, Lebanon's cash-strapped government is looking east, hoping to secure investments from China that could bring relief.
But help from Beijing risks alienating the United States, which has suggested such a move could come at the cost of Lebanese-US ties.
Follow Israel Hayom on Facebook and Twitter
A tiny nation of 5 million on a strategic Mediterranean crossroads between Asia and Europe, Lebanon has long been a site where rivalries between Iran and Saudi Arabia have played out. Now, it's becoming a focus of escalating tensions between China and the West.
In recent months, the Lebanese pound has lost around 80% of its value against the dollar, prices have soared uncontrollably, and much of its middle class has been plunged into poverty. Talks with the International Monetary Fund for a bailout have faltered, and international donors have refused to unlock $11 billion pledged in 2018, pending major economic reforms and anti-corruption measures.
Left with few choices, Prime Minister Hassan Diab's government – supported by the Iran-backed Hezbollah and its allies – is seeking help from China, an approach that the terrorist organization strongly supports.
Beijing has offered to build power stations, a tunnel that cuts through the mountains to shorten the trip between Beirut and the eastern Bekaa Valley, and a railway along Lebanon's coast, according to the official and an economist.
The US, which has historic relations with Lebanon and is a strong backer of its army, said such a move could come at the expense of Beirut's relations with Washington.
The China overtures come at a time when Hezbollah and its allies are increasingly portraying the crisis in Lebanon, which stems from decades of corruption and mismanagement, as one fomented by the US administration. They accuse the US of imposing an informal "financial siege" on Lebanon, partly to put pressure on Hezbollah which Washington and its Gulf Arab allies consider a terrorist organization.
"Trying to blame Lebanon's economic crisis on US sanctions is misguided and false," US State Department spokeswoman Morgan Ortagus said in response to the accusations.
"We understand Lebanon is in desperate need of an infusion of cash. They need investors," US Ambassador to Lebanon Dorothy Shea told Saudi-owned TV station Al-Hadath. However, "investors are not lining up at the door."
Some people have talked about Lebanon turning east "as if that's the answer to all of Lebanon's economic woes," she said, warning that Chinese investments might come "at the expense of the country's prosperity, stability or fiscal viability, or, of course, on the long-standing relations with the United States."
Russian Ambassador Alexander Zasypkin told the daily al-Joumhouria that Russia, China, Syria, Iran, and Iraq can help Lebanon. He added that when the West refused, "the alternative to look east became more persistent."
Subscribe to Israel Hayom's daily newsletter and never miss our top stories!
During a visit to Lebanon last week, Gen. Kenneth McKenzie, head of the US Central Command, was asked about Lebanon and other regional countries looking to China for resources and financing.
"You get what you pay for. That's all I have to say," McKenzie said
