(Ha'aretz) David Rosenberg - Tehran is counting on China as a counterbalance to the U.S. and Europe. "China is a major factor in why Iran feels it can overcome the sanctions campaign," says Alex Vatanka, director of the Iran program at the Middle East Institute in Washington. A report by Kevjn Lim of the business-intelligence firm IHS Markit on Iran-China relations, published by Tel Aviv University's Institute for National Security Studies, estimates that in 2019 China took half of Iranian oil exports directly, and probably even more via third countries. Yet China is buying Iranian oil at huge discounts, since the Iranians are so desperate to sell it. Even after sanctions were lifted following the 2015 nuclear agreement, Chinese companies were having trouble doing business in Iran. One reason is because Tehran has yet to sign the Financial Action Task Force (FATF) conventions on money laundering and terror finance, which effectively blocks doing business in dollars or using U.S. clearinghouses. Unless Iran does so, Chinese banks can't provide the finance and transaction services needed for long-term business agreements. "China is not giving Iran a blank check on its nuclear program," notes Vatanka. Moreover, Iran and China's interests diverge over the issue of Middle East stability. While Iran is sponsoring non-state militias across the region, undermining regimes in Iraq and Lebanon, and helping to perpetuate wars in Syria and Yemen, China sees stability as good for business. Indeed, China values the U.S. regional security umbrella, which protects the flow of Gulf oil to China, with Washington picking up the cost, says Lim.
2021-11-11 00:00:00Full ArticleBACK Visit the Daily Alert Archive