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The Saudi Arabian issue

Giancarlo Elia Valori

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The 32-year old Prince Muhammad bin Salman, who  is the heir to Saudi Arabia’s throne, wants at first “to eradicate the roots of Islamic extremism” as soon as possible. This means that from now on the confrontation between Shiite Iran and Sunni Saudi Arabia will be downplayed from infra-Islamic clash of civilization to a normal and natural standard of regional warfare.

 The openings made by Muhammad bin Salman – designated as Crown Prince by his father after many years – such as allowing women to drive are very clear signs that the al-Saud Kingdom does no longer want to be a fundamentalist island in the Middle East nor a silent partner of the United States or of other countries.

 This implies the end of Sunni-Shiite clash of civilizations and the fact that Saudi Arabia agrees to set aside its traditional role as leader of an all-out struggle with the “Ali Sect” led by Iran.

 Let us not be misled by the first reactions to the Saudi official statements.

 The war against Qatar is primarily a fight against the “Muslim Brotherhoods” and the clash with a natural gas power, namely Qatar, against a necessarily oil power, namely Saudi Arabia.

 Other economic cycles, other buyers, other geostrategic and military development lines between Al Thani’s Qatari Emirate and the al-Saud Kingdom.

  Hence, from now on, Saudi Arabia wants to avoid a radical and global war throughout the Middle East to destabilize it and thus conquer the old and modern hegemony of Islam within the Greater Middle East.

 No longer pan-Islamic dreams of glory, but the protection of the Saudi Kingdom’s national interest.

 Hence there are two winners in the current fight: the first is Israel and hence the countries, excluding the United States, which want to reformulate their friendly presence throughout the old Fertile Crescent.

 It is also worth noting that Prince al-Walid, arrested by Muhammad bin Salman, was a fierce enemy of the current US President.

 It should be recalled that the United States led by President Donald  J. Trump yielded to the “Sunni NATO” project, namely the Islamic Military Alliance to Fight Terrorism, led by the Pakistani General Raheel Sharif.

 The “Sunni NATO”  headquarters are located in Riyadh, which still implies a hard line obviously against Iran and  India, as well as support to the fight against the Afghan Taliban.

 And if the “Sunni NATO” were the project of a strategic and economic internationalization of petromonarchies, thus isolating Iran in a future ever less profitable oil market?

 After the six Saudi Kings, from 1932 onward, Muhammad Bin Salman has inherited de facto power in the Kingdom by his father, Prince Nayef, thus replacing his half-brother who, however, is still a member of the clan holding true power in the Saudi family, the “Sudairy Seven”.

 The current strong man of the Saudi regime, namely the Crown Prince, was raised to the rank of second in the line of succession, in the first half of 2015. In fact, he has become an important personality on the world scene when ten years ago he destabilized – probably permanently – the al-Qaeda network in the Saudi Kingdom and last year decided  – together with his 55-year old cousin, Mohammed Bin Nayef – to exert the utmost pressure on the Houthi rebels in Yemen, a network of Shiites linked to Iran.

 For the al-Saud Kingdom, closing the doors to Iran in its area of ​​influence means to ensure a peaceful internationalization outside the regional Islamic universe, as well as to ensure the Kingdom’s permanent social and religious stability.

 Hence the war between the Shi’a Iranian Republic and the Wahhabi and Sunni Kingdom is bound to keep the Greater Middle East a hot spot and try to control the routes in the Persian Gulf, while the perimeters of the new Middle East global security are redefined outside Syria and the Lebanon.

 A system that the emerging power, namely the Russian Federation, will keep out of the US control lines, while Russia will further expand to Libya, the Lebanon and obviously to the rest of the Maghreb region, not to mention the Horn of Africa and Egypt.

 This is a new redesign of the Western balance of powers towards the Russian and Chinese ones – a new system emerging in the new external, but now essential peripheral areas of the Greater Middle East.

 Nevertheless there is an essential symbolic and political factor which should not be forgotten in the Shakespearean Royal Palace of Riyadh.

In fact, it is today that, after many years, Prince Muhammad bin Salman directly inherits the throne from his Father –  also thanks to a legal-political institution established by King Salman in 2017, namely the “Allegiance Council”, designed to make the process of succession in the Saudi Kingdom smoother and more orderly.

 Born on August 31, 1985, the heir to the throne Prince Mohammed is now 37 and has already been the youngest Defence Minister in the world.

 Even today, however – considering the strong autonomy of Mohammed Bin Salman –  the dynastic institution founded in 2007 seems to be not yet fully operational.

 Mohammed Bin Salman replaced his cousin in June 2017, as part of a major transformation of the political and strategic system inside the Saudi Royal Family.

 The whole network of high-profile “corrupt people” or “traitors” arrested in an anti-corruption sweep by the future Saudi King, is made up of 49 senior officers, Princes and Ministers – a police operation devastating the entire old system of political, financial and strategic equilibria that characterized the old pact of “petrodollar laundering”, which marked the union between the United States and Saudi Arabia when Henry Kissinger negotiated the whole operation, in perfect secrecy, at the end of the “Yom Kippur War” .

  The choice of Muhammad as heir to the throne, upon King Salman’s proposal, was accepted by 31 out of the 34 members of the Allegiance Council.

 Hence the policy line is now clear: the Kingdom wants to govern two parallel evolutionary lines: the exit from the oil-dependent economy, which Prince Muhammad Bin Salman has envisaged in his Vision 2030 program, and the creation of regional hegemony outside oil dependence from the United States, which is now autonomous from the Middle East oil thanks to its shale oil.

 In its already known project, the basis for Saudi Arabia’s  future hegemony regards the acceptance of two new factors: the US future energy autonomy with its “oil and shale gas” and hence Saudi Arabia’s exit from a guaranteed military and economic balance with the United States, as well as the historic collapse of oil barrel prices – oil which, according to the Saudi leaders, must be entirely left to  Shiite poverty and hence to Iran.

 Hence the “Vision 2030” program wants to reduce the Saudi dependence on oil and obviously the dependence of the national economy on the public sector.

 Moreover, the issue lies in making the Royal Family preserve its ability to distribute selective, but important resources to the most politically important walks of Saudi population – on a case-by case basis – to support the regime.

There is no more money for luxuries. The Saudi government’s money must be spent to preserve people’s support that is currently no longer guaranteed.

 In fact, without panem et circenses, it is hard to imagine – in the future – a reasonable stability of the Saudi Royal Family. And panem et circenses will be ever less a burden on US accounts.

  The future dollar equilibria and the end of the Euro as a global currency, as well as the end of the use of  petrodollars by Russia and China, make us think that the new ruling class in Saudi Arabia will be ever less pro-USA and ever more multilateral.

 And it is the Royal Family as such – not in the variety of its many groups – who shall bear responsibility for funds to  masses and for public charity that shall increasingly bear the costs of “liberalization”, of low wages and of the deprivation of union, political and clan protections.

 In fact, if Saudi Arabia does not plan its future “public charity” it will end up like the largely liberalized Lebanon or like the States that, after the crisis in the grain and food commodity market of 2008-2010, had to face the riots that –  manipulated by others – later turned into the “Arab Springs”.

 In this case the probable solution of the future King Mohammed will be greater democratization of choices to replace a reduction in income.

 A “European” solution.

 The Saudi “Vision 2030” project also implies liberalization specifically aimed at creating jobs and opportunities for companies in the service sector and in the tourist and entertainment business, in particular.

 But who are the “purged” of the new Saudi regime?

  They are 49 people, eleven Princes, four Ministers of the new regime that Muhammad Bin Salman – the first heir designated by his father, King Salman, to rule Saudi Arabia –  has agreed to put aside forever.

 There are clear signs of what will happen shortly.

 In this context, it is worth recalling the very important role played by the marginalization of Al Waleed bin Talal in the new Saudi financial and political context.

 Forbes reported he has a personal fortune of over 17 billion US dollars.

The investment of Prince Al Walid, the elder son of King Abdullah Abdulaziz and of Riad El Sohl, the Lebanese Prime Minister in the 1950s, are spread in the main Western areas: Twitter, Lyft, Eurodisney, Twentieth Century Fox, a tower in Jeddah, Saudi Arabia, which is the highest in the world and was supposed to open in 2019.

 He sold a yacht to Donald Trump, whom he hates, but has still significant investment in Apple, News Corp., as well as the ownership of the Savoy Hotel in London and the MBC satellite TV network. Other purged officials are the Head of the Saudi Arabian General Investment Authority, Amr al Dabbagh, as well as Ibrahim Assaf, the former Minister of Finance, and finally Bakr Bin Laden, the Head of the Binladen Group, a well-known real estate and investment group.

 Other purged officials include another former Saudi  Minister of Finance, Adel Fakieh, a reformer from day one, as well as Khaled al Tuwajiri, a manager of the Saudi traditional economic sector.

 They are all accused of having embezzled public funds to transfer them to their private accounts.

 A source of enrichment and “visible consumption” of the al-Saud extended family, as Veblen would have said.

 Now the family is no longer a single one and the Saudi  government will have a less corporatist and, above all, less personalist logic.

This Saudi “cleansing” operation marks the end of the old link between Arab internationalization and Sunni jihadist terrorism. Muhammad bin Salman’s reforms also marks the Saudi Kingdom’s closure to the flows of the market-world, while there is the re-emergence of the clash between Shiites and Sunnis in a new Middle East, where Saudi Arabia has already established a new relationship with Russia and Israel and decided to effectively follow Xi Jinping’s model, which involves a change of the regime through a fight  against “corruption”.

 It was one of the world’s economic leaders, namely al-Walid Bin Talal, to agree to support Gaddafi before his end in 2011, while the shadows were already casting over the Libyan leader.

 In fact, al-Walid ibn Talal attempted to sell one of its A340 Airbus for 120 million US dollars through a Jordanian broker, Daad Sharaf, who was very close to Gaddafi.

 Daad Sharaf also had to receive a 6.5 million Us dollar “brokerage” fee, but Prince Al Waleed sold to others the airplane probably already used to carry the Lockerbie attacker back to Libya.

 A network in which business mixed dangerously with the Saudi geopolitical operations – at a time when, on the one hand, Saudi Arabia supported the vague “fight against terrorism” and, on the other, fomented it.

 There is no need to recall here the long and very significant story of the relationship between the old Chief of the intelligence services, Turki al-Faisal, a very strong representative of the “Sudairy Seven” and of the network that led part of the Saudi establishment to play the crazy, but not senseless card of al-Qaeda.

 Furthermore, for al-Walid there are also charges – already known in the global financial circles – of corruption, bribery, embezzlement and insider trading.

 The strong reaction of the Royal Family currently in power against the part of al-Saud members who participated in the crazy rush of the “high” oil price phase – when everything was possible, both gains and illegality, as well as economic growth and frauds – is a very effective way to win support from the Saudi people, fed up with the idle rentier or “opulent ruling class” attitudes of some members of the Royal Family.

  Probably the end of the cycle between Sunni jihad and growth of the Kingdom will be the point in which the Greater Middle East will be redesigned: a de facto alliance between Saudi Arabia and Israel, both united by the Shiite danger, between the Golan Heights for Israel and South Yemen for Saudi Arabia; a new alliance between Saudi Arabia, Israel and Russia; China’s entry in the region; the new US positioning and obviously the often ridiculous irrelevance of the European Union.

 The system of the future King Muhammad – after the strange death of Prince Mansur Bin Muqrin in the region of Asir, Saudi Arabia, the husband of a daughter of old King Fahd and later Custodian of the Two Holy Mosques, as well as son of Muqrin al-Abdulaziz, who had been Crown Prince from January to April 2015 – will be a political balance in which keeping the country united and preserving the link between the Royal House and the Saudi people will be the beacon of the monarchy.

 No longer a predatory ruling class, also in relation to the West, but an elite who wants the Kingdom’s political expansion, as well as its economic transformation and hence the end of the oil-dependent economy – a regime that wants to play all its strategic cards, well aware that a King (the United States) is leaving and another King (the Russian Federation) is entering the scene in the region.

 And also aware that Israel is now a well-acquired fact in the Middle East.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

Middle East

Are The U.S. And Its Partners Losing The Grip On Syria’s North East?

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The oil-rich province of Deir Ezzor located in Eastern Syria has witnessed another escalation between the local Arab populace and the Kurdish-dominated Syrian Democratic Forces (SDF). Unexpectedly for the SDF and the U.S. military, the protesters have established control over a number of towns, and it seems they are willing to go further.

Sources close to the SDF initially reported that the protesters limited their demands by requesting a solution to a number of minor issues, but soon enough it became evident that it was not the case and the issue – and a major one – was the presence of SDF in the area. The demonstrators were quick to turn from chanting slogans to taking control of towns: in a single day they captured all of Shuhayl, Al-Hawayej, Diban and forced the SDF members to leave before blocking the roads.

The protests were sparked by a series of assassinations of influential leaders of Al-Aqidat and Al-Baqara tribes. Three Deir Ezzor sheikhs were killed in less than a week: Sheikh Suleiman Khalaf al-Kassar from Al-Aqidat was shot in Busayra village July 30. The next day Sheikh Suleiman Al-Weis who belonged to Al-Baqara was shot in the head by two gunmen on a motorcycle in Al-Dahla. Finally, Sheikh Muttshar al-Hamoud al-Hifl was shot in the outskirts of Al-Hawayej on Sunday, August 2. His relative Sheikh Ibrahim al-Hifl was also wounded in the incident but survived.

In a peculiar coincidence, a few weeks before the assassinations the tribal leaders were invited to a meeting with the SDF Commander Mazloum Abdi with the U.S. servicemen also present. The agenda reportedly included co-operation between the tribes and the SDF. It was reported that at least one of the victims, Muttshar al-Hifti, declined to participate and to engage with the Americans.

An insight into the details of these meetings can be gained through the reports about an oil deal allegedly struck by the SDF and a little known American oil developer Delta Crescent LLC. Delta Crescent was granted exclusive rights for production, refinement and export of the oil from Deir Ezzor fields potentially bringing the participants annual profit of hundreds of millions dollars, according to statements made by U.S. officials. The deal was met with harsh response from the Syrian government who labeled it a “deal between thieves”.

According to sources on the ground, the implication is that those who fell victim to the assassinations shared this view and opposed the deal. Their removal, however, has clearly failed to deliver the results intended by the masterminds behind their deaths, yet another time when the Kurds were thrown to the wolves by the U.S. who is accustomed to making their allies bear the consequences of the reckless pursuit of the American interests.

Meanwhile the SDF started to amass forces in the vicinity of the areas shaken by the unrest. The reinforcements sent from Al-Shadadi, Al-Sousa and Baghuz are gathering at the US military base near Al-Omar oil field. Moreover, two US Apache attack helicopters were spotted patrolling the area. These developments combined with lack of report on any negotiations between the protesters and the SDF leadership paint a grim picture, indicating that the SDF likely intends to use force to disperse the protests.

It is not the first time the SDF resorts to the use of force when faced with the discontent of the local populace in north-eastern Syria, although this approach had never brought the desired result. All areas affected by the protests have been subjected to dozens of raids of the SDF and the US special forces. Reports on these operations unfailingly mentioned arrests of ISIS terrorists. They failed to mention, however, what the Pentagon files under the category of “collateral damage” – deaths of civilians killed in the result of the actions of the US military and their allies.

The upheaval in Deir Ezzor is yet another evidence that the SDF, initially an independent movement, has degraded to a tool or a lever of American influence in Syria, and now finds itself fighting consequences instead of locating the root cause of the unrest – widespread corruption among the officials of the Kurdish administration and dramatic deterioration of the living conditions.

The regional turbulence created by Washington’s constantly shifting stance – or rather a lack of stance – on Syria has grown so strong it finally turned against the American interests. The latest escalation in Deir Ezzor should be considered nothing but a byproduct of this ill-designed policy and, perhaps, marks a beginning of the end of the US and SDF hegemony in Syria’s North East.

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Middle East

The Looming Disaster of the Safer Oil Tanker Moored off the Coast of Yemen

Amb. Sahar Ghanem

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Amidst the raging conflict in Yemen, the challenge of the Safer Oil Tanker emerges as one of the most hazardous risks to the environment safety in the Red Sea as a result of the potential oil spillage in the Red Sea at any moment.

Following expressing deep alarm, the United Nations Security Council called on 29 June,2020, to immediately grant unconditional access for the United Nations technical experts to assess the tanker’s condition without overdue to prevent growing risk of possible rupture, explosion or even spillage.

The threat of the floating Oil Tanker, moored off the coast of Yemen, does not only impose challenges to the geopolitical and strategic importance of the Red Sea, but it rather represents a huge challenge that threatens the environment safety, leading to one of the largest environmental hazards in the world, after the unforgettable 1989 Exxon Valdez oil spill disaster in Siberia – Russia.

On 18 July 2019, the United Nations Humanitarian Affairs Coordinator Mr. Mark Lowcock informed the UN Security Council of the growing threats of the deserted Safar Oil Tanker, warning of possible explosion or leakage of its loads [1.14 M barrels of crude oil]. In his briefing on the humanitarian situation in Yemen, he pointed out that such an incident would result to a disastrous crisis to the marine life in the Red Sea and maritime in the straits of Bab-Al Madeb and Suez Canal which are two significant water corridors to the world.

It is known that the Red Sea is home for some scarce invertebrates such as corals and 600 species of fish. Unless preventative measures are taken now and immediately to prevent oil spill or possible tanker explosion, we will concretely witness a disastrous incident leading to severe effect on the Red Sea marine environment, and on both biodiversity and livelihoods starting from Yemen and extending north to Suez Canal through Jobal strait and the Gulf of Suez and south through Bab-Al Madeb strait reaching even Hormoz strait through the Arabian sea.

Environment experts’ projections expect that 115 islands are vulnerable to the risk of oil pollution; 126,000 fishermen will lose their source of income, among them 76,000 fishmen are in Al Hodeidah governorate; 850 tons of fish stocks will be exposed to the danger of contamination and death in Yemen, in the Red Sea and in Bab Al-Mandam; more than 500 fish species are at high risk of disappearing; and 300 corals will certainly disappear as a result.

The problem emerged following the takeover of the Capital Sanaa on 21 September 2014, when Houthi militias implemented unilateral actions inter alia dissolving parliament and taking over Yemen’s government institutions, which have seriously escalated the situation, leading to illegitimate seizure of power “coup d’etat”, and eventually leading to current conflict in Yemen.

The floating storage and its connected offloading terminals have not been inspected or maintained since 2015 after Houthis militias took control of the area including port of Ras Isa to which the floating tanker is connected by terminals extending 9km off the coast of Yemen.

Yemen’s internationally-recognized government has warned in many letters of evident corrosion and lack of maintenance, creating the conditions for serious environmental disaster. The Yemeni government made an urgent call for the UN to send inspection team to scale the risks.

Unfortunately, the UN inspection team was denied access to the floating tanker by the Houthi militias many times. The UN inspection team is tasked with the mission to provide the necessary inspection and put recommendations for the needed maintenance and continuing to create obstacles will refrain the team from reaching the tanker and delivering the urgent inspection.

Lately, the Government of the Republic of Yemen repeated asserting the urgent emergency of the imminent catastrophe of the floating “Safer Oil Tanker”. The government confirmed that “given the critical nature of the aging floating tanker’s situation, on 27 May 2020 leaks have been reported in the tanker causing water leaked into the tanker’s operational machineries raising the possibilities of the tanker rupturing, sinking or even exploding.

Despite urgent fixing of leaking occurred, the deteriorating situation of the tanker threatens continuing eroding. As a result, on 15 July 2020, the UNSC held a session to debate latest urgent developments and called for urgent response to be taken by the Houthi militias as required by the inspection team. It is worth mentioning that the Houthis always show willingness to accept the inspection team just like the assurances made by the Houthis in August 2019 only to be withdrawn right before the inspection team was due to board the tanker.

The Yemeni government has always approved all relevant initiatives recommended by the UN to allow addressing the serious matter and proposing necessary urgent solutions to the Safer oil tanker, as part of the responsibility to the humanitarian and economic measures proposed by the office of the UN Special Envoy Mr. Martin Griffiths and as part of its responsibility to building and sustaining environment safety; however, the Houthi militias continue refusing to allow permissions to the UN inspection team to visit the oil tanker, noting that the situation of the Safer oil tanker is becoming extremely critical more than ever, causing increasing threats of possible oil spillage, tanker sinking and explosion at any moment.

In conclusion, the Safer Oil Tanker is a floating time-bomb and allowing inspection and maintains is the only possible means that will stop a serious catastrophe from happening. If incidents of explosion or even oil spill occur, that will lead to one of the worst man-made environmental disasters in the Red Sea. Action must be taken immediately while we have in hand an opportunity to protect the environments and spare the lives of millions of people in Yemen and the region from a looming tragedy.

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Middle East

Greater Implications of the Iran-China Deal on India

Dhritiman Banerjee

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Authors: Dhritiman Banerjee and Subarna Mustari*

India entered as a stakeholder in the development of Iran’s Chabahar port in 2016 as part of an India- Afghanistan- Iran trilateral agreement on Establishment of International Transport and Transit Corridor. A landmark strategic victory for India, this agreement not only connected New Delhi with Kabul but also provided India a link to Eurasia through the International North-South Transport Corridor (INSTC). Additionally, it sought to challenge China’s investment in the Gwadar Port in Pakistan as part of China-Pakistan Economic Corridor (CPEC). Indian involvement in the Chabahar- Zahedan Railway project therefore has far-reaching implications for New-Delhi’s interests in the Asian geopolitical scenario. However, after Iran’s signing of a landmark investment deal with China earlier this year, we aim to analyze the implications of the deal on India in this article.

The Middle East is particularly important to India because of its vast energy resources. Stephen P. Cohen feels that five factors steer India’s policy in the Middle East namely:

1. Energy Security: India is very reliant on Oil and Gas resources from the Middle East and therefore relations with most of the major suppliers including Iran, the UAE, Saudi Arabia and Iraq are strategically important to India. And India does not want to become a victim to a sudden increase in Oil and Gas prices or a temporary embargo of these resources as the pipeline from Central Asia to India via Iran, Afghanistan and Pakistan is not likely to materialize soon.

2. The Muslim Factor: Although a secular democratic State, India has a very high Muslim population who resonate with countries in the Middle East which brings out the relation between India’s foreign and economic policy on the one hand and domestic politics on the other. This linkage has particularly increased in importance after the passing of the controversial Citizenship Amendment Act (CAA) by the Modi Government which is thought to be discriminatory against Muslims and has provoked sharp criticism from the international community.

3. The Kashmir Factor: For Indian foreign policy it is of paramount importance that the Middle Eastern States do not interfere in Kashmir or support Pakistan regarding the issue. Therefore it conducts a “sophisticated balance of power diplomacy” in order to contain the spread of Pakistani influence regarding Kashmir and to keep the Kashmir issue out of all discussions.

4. The Israel Factor: India’s recent cultivation of strategic relations with Israel has led to important advancements in the technology, intelligence, and military sectors as well as important leverage in the US but many analysts in India are still skeptical about cultivating close relations with Tel Aviv. Eventually it can be said that a balance between Tel Aviv and Tehran will become an important factor in Indian Foreign Policy.

5. The Non-Proliferation Factor: Because of India’s strategic relations with the US, India does not want to violate American non-proliferation goals in the region. But Indian strategists have had a long history of skepticism regarding American non-proliferation strategies and tactics with skepticism. In fact the Indian leadership was at the forefront in the development of the theoretical case against the Non-Proliferation Treaty (NPT) and the global non-proliferation regime. In fact, most of the arguments developed by India are now used by Iran and North Korea to justify their opposition to the NPT and therefore India must find a solution to this paradox in the near future as although its record of horizontal proliferation has been very good, it has been an example for States regarding vertical proliferation.  

China’s offer to invest $400 billion in Iranian oil and gas sectors over 25 years tokening a comprehensive trade and military partnership between the two nations is undoubtedly far more beneficial to Iran than India’s promise of a $150 million investment scheme over 10 years. This deal is mutually beneficial for both China and Iran and the Iranian economy reeling under sanctions will get a much needed lifeline. Similarly, China is facing international criticism over its aggressive political and military strategies that include attempts at hegemonizing the South China Sea (SCS) at the cost of the other littoral States, passing a new security law to strengthen its control over Hong Kong and engaging in a border standoff with India in Ladakh. This deal therefore allows China a strategic leverage in the Middle East. China’s strategic decision for such an investment into Iran comes at a notable time – immediately following the Sino-Indian Border Clash of June 2020. Iran’s decision to choose a more lucrative deal from a more lucrative regional partner facing the same extra-regional opponent – the United States – intersects directly with India’s vested security interests in Iran against both China and Pakistan. Furthermore, India’s relations with the United States puts both India and Iran in a very complicated situation with Iran at greater risk of allowing more Chinese presence than India in the region, given the former’s bigger investment and the mutual threat of the United States.

India, compared to China, not only has far less to offer economically to neutral yet strategic prospective allies (Iraq, Iran, and other Gulf nations) in countering China in the West Indian Ocean Region (IOR), but its alliance with the extra-regional United States has compromised Iran’s faith in India as concrete ally. With such a timely investment, China has in one stroke obtained a highly strategic regional ally against the United States in securing its energy concerns, and simultaneously taken the battle directly to Iran where India is attempting to undermine China’s String of Pearls (SOP) strategy (Gwadar Port, Pakistan) through the Chabahar Port.

Furthermore, India’s recent history of erratic dealings in the middle-east, and compliance with the US’s policies in Asia has dipped the region’s confidence in India as a reliable regional partner. China’s already expanding foothold in the middle-east and Africa, and stronger deliverance makes it a better prospective partner for Arab nations who see China as such. In fact, in recent years China’s influence has grown in the region through an increase in economic investment.  Between 2005 and 2019, China has invested over $55 billion in the region according to the AEI’s China Global Investments tracker. Between 2004 and 2014, China also gave financial assistance of $42.8 billion to the region according to Aid Data Research lab. Also for many States in the Middle East, China is their most reliable trade and strategic partner as well as a key source of technology and armed drones. Therefore, it can be claimed that while Iran and China have patterned their foreign policies in such a way that it regionally benefits them against extra-regional influences; India’s current foreign policy narrative accounts to a degree of dependency on extra-regional powers that limits its regional interests of security against its two biggest border rivals – China and Pakistan. Secondly, India’s engagement with the United Sates in the maritime arena remains limited in the eastern side of the Indian Ocean at a time when India needs to increase a collaborative presence on the western side – which, given the unfavorable economic effects of the pandemic and wishful economic management of the Indian Government, leaves room only for clever diplomacy on India’s part. Therefore, Indian dealings in the middle-east and in the West IOR have to be strategically designed with not just extra-regional allies which share the same apprehensions of Chinese presence; but also look to secure greater strategic partnerships with East Asian nations like South Korea and Japan to balance its over-dependence on the United States for energy and geopolitically diversify its defense against China’s SOP doctrine.

India, apart from expedient solidification of its energy, trade, and security interests in the middle-east, has to double-down on its Act East Policy especially with Indonesia and Malaysia. In fact, in this regard it can be said that relations with these two countries, particularly with Indonesia, will be of paramount importance to India. This will help cement India’s claim of a rules based maritime order in the Indo-Pacific in order to check Chinese attempts to hegemonize the region. In this regard, the link between the Andaman and Nicobar Islands and the Aceh Province in Indonesia will cement maritime ties between the two countries and help to check Chinese advances near the strait of Malacca through the SOP strategy. However, a major restriction to such collaborations in this regard, would be the persecution of Muslims under the Modi government in India and the religious radicalism prevailing in the country. Another more viable option available to India is the QUAD group consisting of India, US, Australia and Japan. India can use this grouping to not only uphold its claim of a rules based maritime order but also gain a foothold in the SCS region and pose a challenge to China through close alliances with the QUAD and ASEAN (Association of South East Asian Nations). Therefore, to conclude, it can be said that a new Cold War maybe brewing between India and China which might set to define the very nature of Asian geopolitics in the near future.

* Subarna Mustari is an undergraduate student of Political Science at Bethune College, Kolkata. Her interests lie in Political Science and International Relations as well as in history of war, colonialism and philosophy. She has recently published for Modern Diplomacy.

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