China’s billions of dollars in global investments and infrastructure projects seem to be paying off politically and economically.

Just recently, Honduras signalled it is set to cut diplomatic ties with Taiwan, having been one of the few remaining countries to recognise the island as a state. This switch of allegiances would be a coup for China, which sees Taiwan as part of its jurisdiction, but also a sign of diminishing US power in Latin America, since the US is a long-time supporter of Taiwan.

China’s influence seems to be everywhere. Days before Chinese president Xi Jinping flew into Moscow to discuss the Ukraine war with Russia’s Vladimir Putin, China had brokered a deal between Iran and Saudi Arabia.

The high-profile deal sought to re-establish diplomatic, trade and security relations between Iran and Saudi Arabia in an effort to de-escalate tensions and bring more stability to the Middle East. The agreement transforms the nature of China’s involvement in the region from one purely driven by commercial interests into a security-related cooperation that can protect its growing assets and expatriate population in the region.

Commentators see the agreement as a positive step but wonder about the influence that Iran and Saudi Arabia can have in lessening the internal conflicts in several nearby countries. This is particularly where they support rival parties, including in Lebanon, Syria and Yemen. What the deal does highlight is the rising influence that China can exert and the waning of the US’s power over the Middle East regional order.