Israel-Saudi Arabia Trade Jabs as Palestinian Issue Becomes a Major Sticking Point; Arab States Turn to China on Palestine

Feb 10, 2025

Efforts to normalize relations between Israel and Saudi Arabia have hit a new roadblock following controversial remarks from Israeli Prime Minister Benjamin Netanyahu and former U.S. President Donald Trump regarding the future of Palestinians in Gaza. Over the past week, a flurry of statements from regional and global actors has underscored the growing divide between Israel and the Arab world, particularly on the issue of Palestinian statehood and the right of Palestinian citizens to remain in Gaza. Saudi Arabia and other key Arab states have not only reaffirmed their stance on Palestinian self-determination but are also increasingly turning to China as an external ally to counter U.S. support for Netanyahu’s policies and Washington’s reluctance to pressure Israel.

Netanyahu’s Proposal Sparks Outrage

The latest flashpoint came when Netanyahu suggested that Saudi Arabia, given its vast territory, could host a future Palestinian state. "The Saudis can create a Palestinian state in Saudi Arabia; they have a lot of land over there," Netanyahu reportedly said during a closed-door meeting, according to Israeli media. The remarks were immediately condemned by Saudi Arabia, which called the idea "an outright rejection of Palestinian national rights" and reaffirmed that the Kingdom "will never be part of any project that facilitates the forced displacement of Palestinians from their land."

Jordan and Egypt, the two Arab states that have maintained peace treaties with Israel, swiftly joined Saudi Arabia in rejecting Netanyahu’s comments. Jordanian Foreign Minister Ayman Safadi called it "a dangerous attempt to deflect from Israel’s responsibilities as an occupying power" and warned that any moves toward mass displacement could escalate regional instability. Egypt, which has been actively involved in ceasefire negotiations, stated that such rhetoric only fuels Palestinian grievances and further complicates efforts to end the war in Gaza.

Trump’s Comments on Gaza Fuel Tensions

Adding to the controversy, Donald Trump recently suggested that the U.S. could “take over” Gaza as part of a post-war stabilization plan, while also floating the idea of relocating Gaza’s population temporarily to other Arab states. Some key Trump officials quickly walked back those comments, with senior officials clarifying that there is “no plan” for U.S. involvement in governing Gaza. However, others have sought to “clarify” Trump’s comments, like Secretary Rubio noting any displacement would be “temporary”. Trump's statements reinforced perceptions in the Arab world that Washington is aligning with Israeli hardliners and disregarding Palestinian sovereignty.

Saudi Arabia Sees Netanyahu and the Israeli Right as a Threat to Regional Stability

For Saudi Arabia, Netanyahu’s statements reflect a broader issue: the increasing dominance of far-right, ultra-nationalist factions within Israeli politics that have long opposed Palestinian statehood. Many in the region see Netanyahu and his allies not just as obstacles to normalization, but as a destabilizing force in the region. The Gaza war, ongoing settlement expansion in the West Bank, and inflammatory rhetoric from Israeli ministers have strengthened Saudi concerns that Netanyahu’s government is not a reliable partner for peace. This does not mean Riyadh will abandon normalization efforts, but the chances of reaching an agreement with a Netanyahu government are slipping.

Saudi Arabia had been engaged in indirect normalization discussions with Israel, brokered by the Biden administration, throughout 2023. However, following the outbreak of the war in Gaza, Riyadh has hardened its stance. The Kingdom has consistently reiterated that no formal ties with Israel will be established without a clear, internationally recognized pathway to Palestinian statehood. The latest developments only further cement that position.

Arab Nations Turn to China for External Support

In response to both Netanyahu’s rhetoric and the Trump administration’s reluctance to push back against Israeli policies, Saudi Arabia and other Arab nations are looking to China as an international counterweight. Over the past year, China has positioned itself as a vocal supporter of Palestinian self-determination, hosting high-level Arab delegations and advocating for UN recognition of Palestinian statehood.

This past week, Chinese Vice Foreign Minister Chen Xiaodong reaffirmed Beijing’s commitment to Palestinian sovereignty, stating that "Gaza belongs to Palestinians and is an inseparable part of Palestinian territory." He emphasized that any future governance arrangement in Gaza must respect Palestinian autonomy and warned against forced displacement. China's foreign ministry also condemned Trump’s remarks, stating that Beijing opposes any forced relocation of Palestinians and supports a two-state solution based on the 1967 borders.

Saudi Arabia, along with Jordan, Egypt, and the UAE, has been engaging with Beijing as part of a broader strategy to internationalize the Palestinian issue and counterbalance Israeli (and now US) influence. Arab leaders see China’s growing diplomatic role as a way to push back against what they perceive as Western complacency in addressing Palestinian grievances.

A Chinese Foreign Ministry statement highlighted that the recent Sino-Arab meeting occured at the collective Arab League request:

On February 7, 2025, Vice Foreign Minister Chen Xiaodong had a group meeting with diplomatic envoys of Arab states to China at the latter's request. The two sides had an exchange of views on the Palestinian question.
Chen Xiaodong said that Gaza belongs to Palestinians and is an inseparable part of Palestinian territory. Any arrangements concerning the future of Gaza must respect the will of the Palestinian people, and any post-conflict governance plan for Gaza must follow the principle of "the Palestinians governing Palestine". President Xi Jinping has repeatedly stressed that China supports the just position of Palestine. China always firmly supports the legitimate national rights of the Palestinian people, supports the effective jurisdiction of the Palestinian National Authority over all Palestinian territories including Gaza and the West Bank, and supports the two-State solution as the fundamental way out to work for an early and just political settlement of the Palestinian question. In other words, China firmly supports the establishment of an independent State of Palestine that enjoys full sovereignty based on the 1967 borders and with East Jerusalem as its capital. China is ready to continue to maintain close communication and coordination with Arab states on the Palestinian question.
The diplomatic envoys of Arab states to China said that Gaza has been the territory of the Palestinian people since ancient times, and the Arab countries firmly oppose the policy of "cleaning out" Gaza, which seriously violates international law and international humanitarian law and also violates relevant resolutions of the United Nations. The legitimate rights of the Palestinian people are not to be deprived of, and the fairness and justice of the international community brook no infringement. The Arab side appreciates China's consistent and just position on the Palestinian question and expects China to continue to play a constructive role in safeguarding international fairness and justice and supporting Palestine's legitimate national rights.

Conclusion: Normalization on Hold, Regional Fractures Deepen

While Israel has continued to express interest in normalizing ties with Saudi Arabia, the Palestinian issue is becoming an increasingly insurmountable obstacle. Netanyahu’s latest remarks have further alienated Saudi leaders, reinforcing their belief that his government is neither willing nor capable of delivering a meaningful political solution to the Palestinian question.

At the same time, Trump’s statements have fueled a broader Arab backlash, prompting closer coordination between Saudi Arabia, Egypt, Jordan, and China in advocating for Palestinian statehood. As the regional landscape shifts, Netanyahu’s hardline approach is not only stalling potential normalization but also accelerating the formation of new diplomatic alignments aimed at challenging Israel’s policies on the global stage.

With Saudi-Israel ties nearly frozen and Arab nations seeking new international allies, the coming months could see a more assertive push for Palestinian statehood at forums like the UN—potentially marking a turning point in how the Middle East balances its relationships with the U.S., Israel, and emerging global powers like China.

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