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Support for US Iran policy out of left field: China dramatically reduces trade with Tehran

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China has dramatically reduced its trade with Iran in line with US sanctions, raising questions whether Iran will remain committed to an international agreement that puts severe limits on its nuclear endeavours.

Reduced Chinese trade also suggests that Iran is likely to face increased obstacles as it seeks to blunt the impact of the harsh US sanctions imposed last year in a bid to force the Islamic republic to change its regional and defense policy.

China’s apparent willingness to accommodate the sanctions is remarkable given Beijing’s declared efforts to salvage the 2015 international agreement that curbed Iran’s nuclear program as well as its escalating trade and technology dispute with the United States.

Bourse & Bazaar, a self-described media and business diplomacy company operated by Esfandyar Batmanghelidj, the founder of the Europe-Iran Forum, disclosed China’s reduced trade on almost the same day that the US Justice Department filed criminal charges against Chinese telecommunications giant Huawei and its chief financial officer Meng Wanzhou.

The Justice Department asserts that the company and Ms. Meng violated Iran sanctions in addition to stealing US robotic technology.

Based on a review of trade data from China’s General Customs Administration, Bourse & Bazaar concluded that Chinese trade with Iran had dropped by 70 percent in the first two months after the re-imposition of US sanctions.

In addition, China’s Bank of Kunlun, the vehicle China used in the past for business with Iran because it had no exposure to the United States and as a result was not vulnerable to US sanctions, said in December that it would restrict its business with Iran to humanitarian trade, effectively excluding all other transactions.

China replaced Europe as Iran’s main trading partner in 2012 at a time that Iran was under United Nations sanctions. Those sanctions were lifted with the conclusion of the nuclear agreement in 2015.

Bourse & Bazaar said Chinese exports to Iran had dropped to US$400 million in the period from October to December of last year compared to US$1.2 billion in the same period in 2017.

“China may be abandoning the policy of sustaining trade with Iran in direct contravention of US sanctions, introducing both economic risks in regards to Iran’s continued industrialization and political risks in regards to Iran’s continued compliance with the JCPOA,” the report said, referring to the nuclear accord by the initials of its official designation, the Joint Comprehensive Plan of Action.

The report said that Iran relies on China for the import of badly needed industrial machinery and technology funded by its oil exports.

Iranian oil exports to China rebounded after the US gave China and seven other countries a six-month waiver but that did not revive Chinese exports, the report said.

Chinese compliance with US sanctions, at least in terms of trade could put to the test Iran’s declared commitment to the nuclear agreement in the wake of US President Donald J. Trump’s withdrawal from the accord last May.

Iran has said its continued commitment would be determined by whether the accord remained in its interest, determined primarily by the ability and willingness of the other signatories to the agreement –China, the European Union, Britain, France, Germany and Russia – to help it blunt the impact of the US sanctions.

The signatories have so far maintained that Iran has complied with the agreement even if the European Union recently sanctioned Iran’s intelligence ministry for allegedly targeting Iranian dissidents in the Netherlands, Denmark and France.

Germany subsequently banned Mahan Air, an Iranian airline sanctioned by the United States, from landing at its airports, asserting that Mahan Air had ferried fighters and weapons to Iranian-backed forces in Syria. Mahan Air operated four flights a week to Duesseldorf and Munich.

The signatories’ position appeared to be supported by a Worldwide Threat Assessment by the US intelligence community that in effect concluded that the Trump administration’s Iran policy had so far failed.

“We continue to assess that Iran is not currently undertaking the key nuclear weapons-development activities we judge necessary to produce a nuclear device,” Director of National Intelligence Daniel Coats told the Senate Intelligence committee in a hearing on the 42-page report.

The report warned that US policy could empower Iranian hard-liners; had sparked at best only sporadic uncoordinated anti-government protests in the Islamic republic; had failed to persuade Iran to change its regional and defense policy; and could prompt it to pursue more aggressive policies to counter perceived US, Saudi and Israeli attempts to destabilize the regime in Tehran.

Disclosure of Chinese willingness to comply to some degree with US sanctions as well as the European sanctions come in advance of a conference in Warsaw next month convened by the United States to discuss peace and security in the Middle East.

The conference, to which Iran has not been invited, is widely seen as a US effort to bolster support for its Iran policy. Russia and EU foreign policy chief Federica Mogherini have said that they would not be participating in the meeting.

An article in China’s state-owned Global Times discussing the Warsaw meeting under the headline, Poland is getting closer to US, but should China be worried? noted that Poland had arrested on espionage charges a former Chinese employee of Huawei and was considering banning the company.

The European Union, in a bid to blunt the impact of the US sanctions, is believed to be on the verge of launching a financial clearing house known as the Special Purpose Vehicle (SPV) that would allow European companies to continue to trade with Iran in accordance with EU law and could be open to other partners such as China.

The vehicle is being conceived as an alternative to the Brussels-based Society for the Worldwide Interbank Financial Telecommunication (SWIFT) international financial messaging system used by more than 10,000 banks worldwide.

The US has blacklisted tens of Iranian banks and pressured SWIFT into agreeing to steer clear of handling transactions of those banks.

The Bourse & Bazaar report warned that continued Chinese refusal to buck US sanctions and ensure Iran has the necessary industrial machinery and technology to keep its economy running would fuel unemployment in the country that could be “devastating and destabilizing.”

The report said Iran was more likely to withdraw from the nuclear agreement in a move that could significantly raise tensions in the Middle East as a result of Chinese rather than European compliance with US sanctions.

“If the nuclear deal collapses due to extraordinary economic pressures in Iran, China may be to blame,” the report said.

Dr. James M. Dorsey is a senior fellow at the S. Rajaratnam School of International Studies, co-director of the University of Würzburg’s Institute for Fan Culture, and the author of The Turbulent World of Middle East Soccer blog, a book with the same title, Comparative Political Transitions between Southeast Asia and the Middle East and North Africa, co-authored with Dr. Teresita Cruz-Del Rosario and three forthcoming books, Shifting Sands, Essays on Sports and Politics in the Middle East and North Africaas well as Creating Frankenstein: The Saudi Export of Ultra-conservatism and China and the Middle East: Venturing into the Maelstrom.

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Iraq Opens Hands to the Pope Francis’ Historic Visit

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Copyright © Dicastero per la Comunicazione - Vatican Media

The world looks forward to Pope Francis’ historic visit to Iraq which is considered the first papal trip represented by the Roman Catholic Church to the cradle of civilization, Mesopotamia, despite spreading the second wave of COVID-19 and the security situation in Iraq. This expected visit has an important impact on highlighting the challenges and disasters of humiliation, the sectarian war and displacing people, Yazidis persecution, and fleeing the Christian minorities that faced Iraq during all these past years after the US invasion occurred in 2003.

The three-day-visit is considered as the message of peace after years of war and violence, referring that the Pope’s visit is as a pilgrim to the cradle of civilization. The papal visit includes Baghdad, Erbil, Mosul- Qaraqosh, and Ur city. The trip comes after 18 months as the pandemic restricts his movement, and it is the first visit to the Middle East when he visited the U.A.E in February 2019 where he met and celebrated in front of 180,000 people at the Zayed Sports City stadium in Abu Dhabi.

The papal visit was intended to occur twenty years ago when St. John Paul II tried to visit Mesopotamia during Saddam’s regime, but the endeavors failed to complete that proposed trip. “The people of Iraq are waiting for us. The people waited for St. John Paul II who was not permitted to go. We cannot disappoint them twice”, said the Pope.

In a video message addressed by the Pope to the people of Iraq, he expressed his happiness and longing to meet the people who suffered from war, scourges, and death during all these years. “I long to meet you, to look at your faces and to visit your blessed ancient land and the cradle of civilization,” the Pope said.

It is expected that the purpose of the Pope’s visit is to preserve the rest of the Christians in Iraq. According to the estimation of the charity aid of the Church in Need, the numbers of Christians have decreased from 1.4 million to under 250,000 since the American invasion of Iraq in 2003, especially in the cities of northern Iraq. Many Christians were killed and fled from 2014 to 2017 due to the Islamic State occupation and due to their atrocities, persecution, and violence against the Christian areas. The Pope yearns for meeting the dwindling Christian communities in Mosul, Qaraqosh, and Nineveh plains where these regions had suffered from the atrocities of ISIS in 2014 and people had been compelled to flee.

The world is waiting for the most significant historic meeting between the 90-year-old Shia Muslim cleric, the Grand Ayatollah Ali al-Sistani, and the 84-year-old Pope Francis in the Shiite shrine city of Najaf. The expected meeting is seen as a real chance to enhance the bonds of fraternity between the Muslims and Christians and to lighten the impact of the islamophobia concept that swept Europe and America due to the terrorism actions that happened in Europe. This expected meeting that will be by Saturday signifies a historic moment when the Grand Ayatollah Ali al-Sistani meets Pope Francis, illustrating the fraternal bonds to make people live in peace and tranquility.

Back in February 2019, the Pontiff Francis and Sheikh Ahmed al-Tayeb, the Grand Imam of Cairo’s al-Azhar mosque and the most prestigious leader in Sunni Islam, agreed and signed the declaration of fraternity, affirming peace among all nations. The two parties in this document adhere to fight extremism in every place in the world. If the Pontiff and the Grand Ayatollah sign a document like the declaration of fraternity, this will give Najaf’s Marjiya a very great impact, and this move will be seen as the first step to decrease the religious tensions and fill the gap of the clash of civilization. This document, if it is enacted, will have a great impact to make peace prevailing and encouraging Muslims and Christians to live in peaceful coexistence.

Ur, which is the oldest city in the world, is to be visited by the pontiff. It is considered the biblical birthplace of Ibraham, the common prophet to the Christians, Muslims, and Judaism and the father of Judaism, Christianity, and Islam. It is expected that there will be prayers in Ziggurat where this place is one of UNESCO world heritage sites. This visit to this historic site will help the landmark to polarize people from Iraq and outside to visit it after years of negligence and ignorance attention to its importance and the vital role that can help Iraq to increase the public income.

The papal visit has many different messages to the people of Iraq. Firstly, the expected meeting with the Grand Ayatollah Ali al-Sistani reflects the fraternal and human stances, and this meeting underlines the important role played by the Grand Ayatollah Ali al-Sistani after the US-led-invasion in 2003. Secondly, his visit to Ur to pray there is a message of the peaceful coexistence between Islam, Christianity, and Judaism, trying to point out that all these three religions emerged from one source. Thirdly, the Pope endeavors to be with the Christians who suffer from the past events of persecution, humiliation, and atrocities. His presence among them is a message of tranquility, serenity, peace, and contentment to live in Iraq with the Muslims and to abandon fighting against others. Finally, the Pope’s visit to Iraq pays the world’s attention to the religious importance of Iraq and the significant role that can be played by Iraq.

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Restart Iran Policy by Stopping Tehran’s Influence Operations

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Another US administration is trying to figure out its Iran policy. And, as always, the very regime at the core of the riddle is influencing the policy outcome. Through the years, the clerical rulers of Iran have honed the art of exploiting America’s democratic public sphere to mislead, deceive, confuse, and influence the public and government.

Yet Washington still does not have a proper taxonomy of policy antidotes when it comes to Tehran’s influence operations.

Arguments dictated by Iranian intelligence services echo in think tanks and many government agencies. These include the extremely misguided supposition that the murderous regime can be reformed or is a reliable negotiating partner for the West; or that there is no other alternative but to deal with the status quo.

How has Tehran been able to deceive some in the US into believing such nonsense? First, by relying on the policy of appeasement pursued by Western governments. And second, through its sophisticated influence operations facilitated by that policy.

Consider three recent instances.

First. Just last month, an Iranian “political scientist” was charged by the Justice Department for acting as an unregistered agent of Iran and secretly receiving money from its mission in New York. “For over a decade, Kaveh Afrasiabi pitched himself to Congress, journalists, and the American public … for the benefit of his employer, the Iranian government, by disguising propaganda as objective polic1y analysis and expertise,” the Justice Department noted.

Afrasiabi has an extensive body of published work and television appearances. In July 2020, according to the Justice Department, he linked many of his books and hundreds of articles in an email written to Iran’s Foreign Minister, Javad Zarif, saying: “Without [Zarif’s] support none of this would have been possible!”

Second. Across the Atlantic, one of Zarif’s official diplomats in Europe, Assadollah Assadi, was convicted and given a 20-year prison sentence by a Belgian court on February 4 for trying to bomb an opposition rally in the outskirts of Paris in June 2018.

Court documents revealed that Assadi crisscrossed Europe as Tehran’s intelligence station chief, paying and directing many agents in at least 11 European countries.

Assadi’s terrorist plot in 2018 was foiled at the last minute. The main target was Maryam Rajavi, the President-elect of the National Council of Resistance of Iran (NCRI). Hundreds of Western lawmakers and former officials were also in attendance.

Third. Unable to harm its opposition through terrorism, the regime has expanded its influence operations against NCRI’s main constituent organization the Mujahedin-e Khalq (MEK), which Tehran considers its arch nemesis.

For decades, the mullahs have misled, deceived, and confused America’s Iran policy by disseminating considerable disinformation about the democratic opposition. This has in turn resulted in bungled American responses to Tehran’s threats.

In a breaking revelation this month, a former Iranian intelligence operative wrote a letter to the UN Secretary General, outlining in glaring detail how the regime’s Ministry of Intelligence and Security (MOIS) recruits, pays, and controls dozens of agents across Europe to influence policy.

Forty-one-year-old Hadi Sani-Khani wrote that he was approached by intelligence agents who lured him into the Iranian embassy in Tirana, Albania (MEK’s headquarters). He said he wants to go back to Iran. On one condition, the embassy responded: Cooperate with the regime’s intelligence against the MEK. He subsequently met with the regime’s intelligence chief, Fereidoun Zandi, who coordinated a network of paid agents in Albania since 2014. The intelligence chief was later expelled by Albanian authorities along with the regime’s ambassador.

Khani was paid 500 euros per month to write and publish anti-MEK articles and also send copious amounts of similar propaganda to members of the European parliament. Dozens of websites are operated by Tehran’s intelligence, some of which are, astonishingly, undeclared sources for unsuspecting Western journalists, think tanks and government agencies when it comes to the MEK.

In many cases, reporters have met directly with the regime’s intelligence agents for their stories. In September 2018, for example, according to Khani, a reporter from German newspaper Der Spiegel traveled to Albania. Khani recalls: “We met the Der Spiegel reporter in a Café in Ramsa district in Zagozi square. Each of us then told her lies about the MEK which we had been given in preparation of the meeting. … [Later on,] she occasionally asked me questions about the MEK which I then raised with the embassy and provided her the response I received.”

Der Spiegel published the story on February 16, 2019, parts of which were copied from websites affiliated with Iran’s intelligence service. Following a lawsuit, a court in Hamburg ordered Der Spiegel to remove the defamatory segments of its article.

These same agents also met with a New York Times correspondent at the same Café, who subsequently wrote a piece against the MEK, regurgitating the very same allegations.

The mullahs’ influence operations are a serious obstacle to formulating an effective US policy toward Tehran. As long as the regime’s agents are allowed to exploit America’s public sphere, cultivate important relationships, infiltrate the media and think tanks, and influence serious policy deliberations in Washington through a flood of falsehoods, America will be at a substantial disadvantage.

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China in the Middle East: Stepping up to the plate

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By defining Chinese characteristics as “seeking common ground while reserving differences,” a formula that implies conflict management rather than conflict resolution, Messrs. Sun and Wu were suggesting that China was seeking to prepare the ground for greater Chinese engagement in efforts to stabilize the Middle East, a volatile region that repeatedly threatens to spin out of control.

The scholars defined China’s goal as building an inclusive and shared regional collective security mechanism based on fairness, justice, multilateralism, comprehensive governance, and the containment of differences.

By implication, Messrs. Sun and Wu’s vision reflected a growing realization in China that it no longer can protect its mushrooming interests exclusively through economic cooperation, trade, and investment.

It also signalled an understanding that stability in the Middle East can only be achieved through an inclusive, comprehensive, and multilateral reconstructed security architecture of which China would have to be part.

Messrs. Sun and Wu’s article, published in a prominent Chine policy journal, was part of a subtle and cautious Chinese messaging that was directed towards players on all sides of the Middle East’s multiple divides.

To be clear, China, like Russia, is not seeking to replace the United States, certainly not in military terms, as a dominant force in the Middle East. Rather, it is gradually laying the groundwork to capitalize on a US desire to rejigger its regional commitments by exploiting US efforts to share the burden more broadly with its regional partners and allies.

China is further suggesting that the United States has proven to be unable to manage the Middle East’s myriad conflicts and disputes, making it a Chinese interest to help steer the region into calmer waters while retaining the US military as the backbone of whatever restructured security architecture emerges.

Implicit in the message is the assumption that the Middle East may be one part of the world in which the United States and China can simultaneously cooperate and compete; cooperate in maintaining regional security and compete on issues like technology.

That may prove to be an idealized vision. China, like the United States, is more likely to discover that getting from A to B can be torturous and that avoiding being sucked into the Middle East’s myriad conflicts is easier said than done.

China has long prided itself on its ability to maintain good relations with all sides of the divide by avoiding engagement in the crux of the Middle East’s at times existential divides.

Yet, building a sustainable security architecture that includes conflict management mechanisms, without tackling the core of those divides, is likely to prove all but impossible. The real question is at what point does China feel that the cost of non-engagement outweighs the cost of engagement?

The Middle East is nowhere close to entertaining the kind of approaches and policies required to construct an inclusive security architecture. Nevertheless, changes to US policy being adopted by the Biden administration are producing cracks in the posture of various Middle Eastern states, albeit tiny ones, that bolster the Chinese messaging.

Various belligerents, including Saudia Arabia, the United Arab Emirates, Qatar, and Turkey, but not Iran or Israel, at least when it comes to issues like Iran and the Palestinians, have sought to lower the region’s temperature even if fundamentals have not changed.

A potential revival of the 2015 international Iran nuclear agreement could provide a monkey wrench.

There is little doubt that any US-Iranian agreement to do so would focus exclusively on nuclear issues and would not include other agenda points such as ballistic missiles and Iranian support for non-state actors in parts of the Middle East. The silver lining is that ballistic missiles and support for non-state actors are issues that Iran would likely discuss if they were embedded in a discussion about restructured regional security arrangements.

This is where China may have a significant contribution to make. Getting all parties to agree to discuss a broader, more inclusive security arrangement involves not just cajoling but also assuaging fears, including whether and to what degree Chinese relations with an Iran unfettered by US sanctions and international isolation would affect Gulf states.

To be sure, while China has much going for it in the Middle East such as its principle of non-interference in the domestic affairs of others, its affinity for autocracy, and its economic weight and emphasis on economic issues, it also needs to manage pitfalls. These include reputational issues despite its vaccine diplomacy, repression of the Uyghurs in the north-western province of Xinjiang, and discrimination against other Muslim communities.

China’s anti-Muslim policies may not be an immediate issue for much of the Muslim world, but they continuously loom as a potential grey swan.

Nevertheless, China, beyond doubt, alongside the United States can play a key role in stabilizing the Middle East. The question is whether both Beijing and Washington can and will step up to the plate.

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