The Islamic Republic of Iran (IRI) continues to be in the spotlight of global politics. And even though the “Iranian problems” go beyond the Joint Comprehensive Plan of Action (JCPOA), it is the “dying” JCPOA that is the main cause of tensions in and around Iran, be it the financial and economic blow of the United States, which uses the “oil baton” to strike at the Iranian economy, the threat of war in the Persian Gulf and tanker conflicts, or Iran’s geostrategic and regional position in general.
Regrettably, we have to admit that because of Washington’s destructive moves on the global scene the JCPOA is coming under corrosion and may well turn into dust in the near future. Such a negative outcome runs counter to the interests of Russia, China, and the European Union. Therefore, they are making tremendous efforts to preserve these agreements, even if in a slightly different format after the withdrawal of the US.
Political analysts reveal two conflicting views on the future of the JCPOA. Some are sure that the days of the nuclear deal are numbered. Others believe that it can still be “saved”, but this requires the concerted efforts of the countries participating in it.
On July 28, members of the Joint Commission on the Implementation of the JCPOA gathered in Vienna at the level of political directors to focus on pressing issues the JCPOA is confronted with. Participating in the meeting were delegations from Russia, China, Great Britain, France, Germany and Iran. They discussed the negative effect of Iran’s measures to curtail its commitments under the agreement thereby aggravating the situation in the Persian Gulf.
Iran’s partners called on Tehran to refrain from further withdrawal from a number of obligations under the JCPOA. The Iranian leaders have announced that, starting from May 8, they introduce 60-day rounds to gradually curtail compliance with the requirements of the JCPOA . Early September will see a new, third phase of the Iranian struggle against US sanctions. The essence of such moves on the part of Iran is to force the European Union, and, first of all, Britain, France and Germany, to launch at full capacity the INSTEX settlement mechanism, which serves to guarantee the export of Iranian oil. Apparently, this presents a lot of difficulty and causes a lot of doubts among the founders of this financial mechanism.
Reporting on the Vienna consultations, Iranian Foreign Ministry spokesman Abbas Mousavi said that “the meeting in Vienna did not give us any guarantees about the future the JCPOA.” He pointed out that Iran is not sure of the effectiveness of European efforts within the framework of INSTEX and, therefore, about maintaining the JCPOA. Iran will decide on further steps after the forthcoming ministerial meeting of countries that act as guarantors of the JCPOA, the diplomat said.
The head of the Russian delegation in Vienna, Deputy Foreign Minister Sergey Ryabkov, remarked in this connection: “We urged the Iranians to refrain from this [from the phased exit from the JCPOA, V.S.] and explained why: the more measures are taken to reconsider commitments, even if voluntary ones, the higher the political temperature and the higher the chances that some of the participants in the JCPOA may lose temper and trigger aggravation. ”
The Russian diplomat went on to comment: “Certainly, you can follow this course, but it is getting ever more precarious. If we want Iran to refrain, and we also talked about this, the rest of the countries must redouble their efforts in order to provide Iran with an acceptable level of oil export despite all the odds and set the stage for at least some normalization of foreign economic activity.”
To what extent is this possible amid the unprecedented US pressure on Iran? Federica Mogherini, head of the EU for foreign affairs, has cautiously suggested the possibility of intensifying the work of INSTEX. “The question whether INSTEX will deal with oil is currently being discussed by the shareholders,”- she said.
But it is this very issue that determines Iran’s policy, and the choice of the directions of this policy clearly correlates with the following possible developments regarding the JCPOA.
The first way is possible if the authors of the JCPOA, the European Union, and other countries concerned can provide an “acceptable level of oil export”. In this case, Iran will return to the meticulous fulfillment of its nuclear deal commitments. However, there are great doubts that Iran’s partners will be able to satisfy its oil export needs.
American officials have warned European countries that they risk violating sanctions against Iran if they promote a barter system that could allow the export of Iranian oil. A senior White House administration official told Washington Examiner that the US Department of the Treasury had contacted the INSTEX Council to “signal dissatisfaction with the creation of a tool that helps to dodge sanctions and the dangers associated with it.”
No matter how much European politicians and diplomats would like to support the JCPOA, it seems that European business is not ready to take chances with the US sanctions.
The American oil embargo has created a situation which is unparalleled, even compared to the tough international sanctions of 2012-2016. In July, the export of Iranian oil fell to 100 – 120 (taking into account condensate and light oil) thousand barrels per day . In June, this indicator ranged between 300 and 500 thousand. In April 2018, Iran exported 2.5 million bpd , which is 25 times more than this July.
According to experts, to determine the exact amount of oil currently sold by Iran is difficult, since Tehran is using “gray” and other export options. However, the current estimates range within the above mentioned figures.
Thus, even if INSTEX begins to operate at its full “oil” capacity, even if oil is sold on a daily basis to China , Russia , and European countries, and even if the oil export is carried out with the use of all possible legal and semi-legal ways, it is unlikely that all this will compensate Iran’s losses in oil exports and, accordingly, in petrodollars.
However, even in the event of such a far from optimistic scenario, and even considering financial losses, Tehran will not profit from leaving the JCPOA, first of all, for political reasons.
The second option for Iranian policy, will most likely take shape in the context of the EU’s inability to circumvent US sanctions and thereby fulfill its obligations under the JCPOA. In this case, there could be two scenarios.
The first hypothetical option for Iranian policy amid INSTEX futility: Iran openly leaves the JCPOA. On July 29, the Iranian Foreign Ministry issued a statement in which it demanded yet again that European countries act on the conditions of the JCPOA. Otherwise, the statement said, Iran would cease to pursue its obligations under this agreement.
As part of this option, Iran terminates the implementation of the Additional Protocol to the IAEA guarantees, puts an end to the activities of the IAEA inspectors and control by the Agency, restores its nuclear potential and activates the implementation of its nuclear program under plans which were in force before the adoption of the JCPOA. In its most radical version, Iran withdraws from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Such a policy, in its best version for the Iranians, will lead to the complete isolation of Iran and the resumption of international sanctions, possibly under the patronage of the UN Security Council. At worst, it will lead to possible air and missile strikes by the United States and / or Israel at Iran’s nuclear facilities (let’s recall the troubled year 2012). Clearly, such a development does not suit anyone, first of all, Iran.
It should be borne in mind that the European Union (Britain, France and Germany), while opposing the United States on the JCPOA, backs Donald Trump and his team on other issues concerning Iran and its policies. These are as follows: Iran’s missile program, Tehran’s military and political activities in the Middle East, Iran’s support of Hezbollah, Hamas and other Shiite groups, which are deemed terrorist in most Western countries. Therefore, in the event of the collapse of the JCPOA, the EU will concentrate all its political, diplomatic and propaganda campaigns and, possibly, military potential, on Iran.
The second possible political option of Tehran in the conditions of INSTEX incapacity is the continuation of the policy which is currently pursued by the Iranian leadership. On the one hand, there is a well-structured and well-thoughtout phasing out of obligations under the JCPOA, which does not envisage going beyond the “red lines”. On the other hand, bringing partners as close as possible and at the same time lifting tensions in relations with opponents with a view to set the stage for negotiations
On January 29, 2019, addressing a conference on defense and security in Iran, Chief Military Advisor to the Commander-in-Chief and Supreme Leader of the Islamic Republic of Iran, Brigadier-General Yahya Rahim Safavi said that “the development of Iran’s strategic relations with global competitors of the United States, including Russia and China, is one of Iran’s major defense strategies.”
In June, China and Iran held joint naval exercises at the strategic Strait of Hormuz. In July, Iran unilaterally introduced a visa-free regime for citizens of China, as well as for residents of Hong Kong and Macau.
According to Iranian politicians and political analysts, Russia is Iran’s strategic ally in the region and elsewhere in the world. The Commander of the Iranian Navy, Rear Admiral Hossein Khanzadi, has said that Iran and Russia intend to step up maritime cooperation. According to the admiral, a memorandum of understanding was signed in Moscow on naval cooperation and the two sides plan joint military exercises in the Indian Ocean before the end of the year. “By the Indian Ocean, we mean a vast area in the northern part of the ocean, including … the Strait of Hormuz, as well as the Persian Gulf.” Later, on July 30, the command of the Iranian Navy stated that Rear Admiral Khanzadi’s words about the location of the exercises were misinterpreted. He meant the northern part of the Indian Ocean and the Oman Sea.
On August 1, the Russian Defense Ministry did not confirm either the signing of any document, or any plans for joint maneuvers of the Russian Navy and the Iranian Navy.
Judging by these facts, Tehran is trying to use Iran’s good relations with China and Russia for its political agenda and for an effective struggle against its antagonists.
Simultaneously, Iran is seeking to alleviate tensions with its opponents as part of its policy of moderate withdrawal from the JCPOA. A few days ago, Iranian Foreign Minister Mohammad Javad Zarif announced his country’s readiness for a dialogue with Saudi Arabia, Iran’s most fierce rival in the Middle East. The two countries disagree on many issues and support parties that are at war with one another.
The most significant event of recent days is an appeal of the Iranian Foreign Minister Mohammad Javad Zarif to U.S. President Donald Trump to settle the differences between the two countries through negotiation and not succumb to the influence of advisers and allies, who, in his opinion, are pushing Washington into war with Tehran. As Mr. Zarif said “diplomacy is tantamount to common sense, not weakness.”
The Iranian diplomacy is thus demonstrating political flexibility and, at the same time, pragmatism. It seems that Tehran is playing a simultaneous game with many parties and, an all likelihood, there are two major points for Iran to gain from these games.
The first is to prolong the time it takes to make drastic decisions. In any case, it will play for time until the presidential election in the United States, due to take place in November 2020, hoping for the victory of the Democrats and, accordingly, the revival of the JCPOA and the return of Iranian-American relations to the period of 2015-2016.
The second is to score as many points as possible on playing venues around the world to create favorable conditions for undoubtedly welcome future negotiations, in the first place, with the Americans, and, preferably, with a Democratic administration.
Despite its daring and independent position, Tehran has no other pragmatic choice but negotiations. In all likelihood, the American pressure on Iran under Donald Trump will not dwindle. Given the situation, Iran’s foreign policy of the near future will move along a thorny path full of unpredictable pitfalls and unexpected turns. But obviously, all these efforts are oriented at the only option possible – negotiations. Other ways are either unrealistic, or lead to war. And this, I dare say, is something no one wants, including the United States.
From our partner International Affairs
Rejiggering Gulf Security: China’s Game of Shadow Boxing
China and its Gulf partners appear to be engaged in a game of shadow boxing.
At stake is the future of Gulf security and the management of differences between the region’s conservative monarchies and revolutionary Iran.
With governments passing to one another unofficial subtle messages, intellectuals and journalists are the ones out front in the ring.
In the latest round, Baria Alamuddin, a Lebanese journalist who regularly writes columns for Saudi media, has cast subtlety aside.
Ms. Alamuddin warned in strong and rare anti-Chinese language that China was being lured to financially bankrupt Lebanon by Hezbollah, the Iranian-backed Lebanese Shiite militia.
Writing in Arab News, the Saudi Arabia’s primary English-language newspaper, Ms. Alamuddin suggested that the Lebanese Shiite militia’s seduction of China was occurring against the backdrop of a potential massive 25-year cooperation agreement between the People’s Republic and Iran.
Her tirade was as much a response to reports of the alleged landmark agreement as it was to a declaration by Hezbollah leader Hassan Nasrallah that China was willing to invest in Lebanon’s infrastructure.
“Chinese companies are ready to inject money into this country. If this happened, it would bring money to the country, bring investment, create job opportunities, allow heavy transport, and so on,” Mr. Nasrallah said.
In a state-controlled media outlet in a country that has studiously backed some of the worst manifestations of Chinese autocratic behavior, including the brutal crackdown on Uyghur Turkic Muslims in Xinjiang and the repression of democratic expression and dissidents, Ms. Alamuddin did not mince words.
“Chinese diplomacy is ruthless, mercantile and self-interested, with none of the West’s lip service to human rights, rule of law or cultural interchange.”
“Chinese business and investment are welcome, but Beijing has a record of partnering with avaricious African and Asian elites willing to sell out their sovereignty. Chinese diplomacy is ruthless, mercantile and self-interested, with none of the West’s lip service to human rights, rule of law or cultural interchange,” Ms. Alamuddin charged.
She quoted a Middle East expert of a conservative US think tank as warning that “vultures from Beijing are circling, eyeing tasty infrastructure assets like ports and airports as well as soft power influence through Lebanon’s universities.”
She went on to assert that “witnessing how dissident voices have been mercilessly throttled in Hong Kong, Tibet and Xinjiang, Lebanese citizens are justifiably fearful that their freedoms and culture would be crushed under heavy-handed, authoritarian Chinese and Iranian dominance, amid the miserable, monolithic atmosphere Hezbollah seeks to impose.”
Ms. Alamuddin’s outburst implicitly recognized that China was signaling Gulf states, at a time of heightened uncertainty about the reliability of the United States’ regional defense umbrella, that they need to reduce tensions with Iran if the People’s Republic were to engage in helping create a new regional security architecture.
China was signaling Gulf states, at a time of heightened uncertainty about the reliability of the United States’ regional defense umbrella, that they need to reduce tensions with Iran.
Expressing concern about last month’s US decision to withdraw troops from Europe a day after Ms. Alamuddin’s stark criticism of China, Gulf Cooperation Council (GCC) Assistant Secretary-General for political affairs and negotiation Abdel Aziz Aluwaisheg suggested that “a more systematic framework, with organic feedback to the leadership and decision-makers” was needed for US-Gulf security discussions.
The GCC groups the Gulf’s six monarchies: Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain.
China has been subtly pressuring Gulf states through academic and Communist party publications and public statements by prominent scholars with close ties to the government in Beijing.
Its messaging has primarily targeted Saudi Arabia, the one Gulf state that has so far refrained from engaging in any gestures towards Iran that could facilitate a dialing down of tension.
A recent article in a renowned Chinese journal laid out the principles on which China is willing to break with its long-standing foreign and defense policy principles to engage in Gulf security.
The principles included “seeking common ground while reserving differences,” a formula that implies conflict management rather than conflict resolution.
Most Gulf states have extended a helping hand to Iran, the Middle East country most hard hit by the coronavirus pandemic.
The Iranian and UAE foreign ministers agreed in a recent video call to cooperate during the health crisis.
“We agreed to continue dialogue on [the] theme of hope—especially as [the] region faces tough challenges, and tougher choices ahead,” said Iranian Foreign Minister Mohammad Javad Zarif on Twitter.
UAE officials said earlier that there were limits to a reduction of tensions. They said a real détente would only be possible once Iran changed its behavior, meaning a halt to support for proxies in Lebanon, Iraq, and Yemen and a surrender of its nuclear ambitions.
The Chinese-Gulf shadow boxing takes place against a slow-moving and seemingly troubled US and Chinese-backed Pakistani effort to mediate between Saudi Arabia and Iran.
The Chinese-Gulf shadow boxing takes place against a slow-moving and seemingly troubled US and Chinese-backed Pakistani effort to mediate between Saudi Arabia and Iran.
Pakistani Prime Minister Imran Khan said last week without providing details that he had averted a military confrontation between the two Gulf powers. He said mediation was “making progress but slowly.”
Ms. Alamuddin’s column coupled with Saudi Arabia’s refusal to capitalize on the pandemic as way to reduce tensions, suggests that Saudi Arabia has yet to fully embrace Mr. Khan’s efforts.
Mr. Khan’s efforts are likely to be further complicated by the disclosure last month by Pakistani law enforcement that a Baloch gang leader, who was detained in 2017, had confessed to giving “secret information and sketches regarding army installations and officials to foreign agents,” believed to be Iranians.
It was not immediately clear what prompted the disclosure.
Pakistan has long asserted that Iran and India have lent support to Baloch nationalist militants responsible for multiple attacks on military and Chinese targets in the South Asian state.
“The Iran-Pakistan border issues are mainly affected by the sectarian rivalry between Iran and Saudi Arabia. For Pakistan, this is a costly and difficult diplomatic situation at this time,” said Michael Kugelman, a South Asia scholar at the Wilson Center in Washington.
Pakistan has a vested interest in helping dial down Saudi-Iranian tensions. It takes, however, two to tango and a mediator whose efforts are not burdened by bilateral issues of his own with any of the parties.
To move the pendulum, more will be required than a regional go-between or subtle nudging. With the US likely to refrain from doing the heavy lifting, that task may be left to China. If Ms. Alamuddin is an indication, China is already discovering that changing the paradigm in the Middle East is easier said than done.
Author’s note: This story was first published in Inside Arabia
Evolving Japan-UAE ties
Japan and the UAE share a unique relationship with each other. Japan recognised the UAE as an independent state in 1971 and opened its Embassy in the UAE in 1974 and on the other hand, UAE opened its embassy in Japan in 1973. Both nations share strong bilateral economic relations, dating back to 1961 when the first shipment of the crude oil was exported from Umm Al-Sharif offshore field in Abu Dhabi to Japan. Japan is known to be the world’s fourth-largest importer of oil. In 2017, it was the second-largest export market, behind China, for Saudi Arabia, the UAE and Qatar. The UAE became the top destination in the Middle East region for Japan’s exports, valued at $7.18 billion in 2019, taking economic bilateral relations to a great level. However, on 19 July 2020, UAE spacecraft rocketed into blue skies from a Japanese launch centre at the start of a seven-month journey to Mars on the Arab’s world’s first interplanetary mission. This mission gave a boost to its strategic relations as well as space cooperation.
Understanding their bilateral relations
The longstanding cordial relationship between the UAE and Japan has been honored for decades. In 2013, PM Shinzo Abe visited the UAE and both nations jointly announced the statement on the strengthening of the Comprehensive Partnership between Japan and the UAE towards stability and prosperity. The relations between both countries have mostly focused on the economy and trade ever since they established their diplomatic relations. Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces H.H. Sheikh Mohammed bin Zayed Al Nahyan visited Japan as an official guest in February 2014 to follow up the Joint Statement issued during the Prime Minister’s visit to the UAE in May 2013.
In 2016, the number of Japanese citizens living in the UAE totalled 4,000, while hundreds of Emirati citizens are in Japan for education and investment purposes.
In 2018, the Comprehensive Strategic Partnership Initiative (CSPI) was signed between the two countries when Abe visited the UAE. With the signing of the CSPI, the relationship between Japan and the UAE entered a new era of strategic partnership for the future and joint cooperation strategy between the institutions of the two countries. They also agreed to increase trade in areas which included renewable energy, advanced robots, artificial intelligence and health care. Ensuring cordial energy ties are critical under the CSPI. In 2018, Japan also acquired an oil concession in Abu Dhabi for the coming 40 years which proved that Japan is an important strategic energy partner in the UAE.
The leadership of the UAE has been keen on strengthening ties with Japan in areas like education, scientific research and industry. It aims to seek its ties with Japan to new levels as Japan possesses advanced technology which would serve the sustainable and comprehensive development goals in the UAE. Cooperation is very strong in the education field. The first Japanese school was inaugurated in the UAE in 2009 and began teaching the Arabic language, Islamic education and social studies to the students of the Emirates along with the Japanese curriculum. Furthermore, around 100 students from the Emirates are studying in Japanese universities for bachelors, masters and even PhD degrees.
In 2019, an attempt of initiating to teach Japanese as a second foreign language in some UAE high schools was discussed among both countries. Akihiko Nakajima, new Japanese ambassador to the UAE affirmed that ‘both nations are currently giving importance to educational cooperation’. The friendly ties were further strengthened in recent times when Sheikh Hazza Bin Zayed Al-Nahyen, Deputy Chairman of Abu Dhabi Executive Council and Dr Sultan Ahmad Al-Jaber, Minister of State and Special Envoy to Japan, attended the enthronement ceremony of the Japanese Emperor Naruhito in 2019. They wished that Japan shall achieve a brighter and more prosperous future during the ‘Reiwa Era’.
Japan and the UAE have been closely cooperating in space sciences. In October 2018, ‘KhalifaSat’ was launched into outer space from the Tanegashima Space Centre in Japan aboard an H-IIA rocket. In January 2020, Shinzo Abe made an official visit to the UAE and other Gulf countries to further bolster the strong ties which have been evolving on multiple fronts like trade, energy, technology, space and education. “UAE-Japan relations are historic and based on trust, cooperation, respect and mutual interests,” Sheikh Mohamed bin Zayed said. Abe and Sheikh Mohammad also witnessed the signing of an Energy Cooperation Agreement between supreme Petroleum Council, represented by Adnoc (Abu Dhabi National Oil Company), and Japan’s agency for natural resources and energy.
The lift-off of the Mars orbiter named Amal or Hope probe on 19th July 2020, from a Japanese launch centre is to be followed soon by China and the United States. Amal blasted off from the Tanegashima space centre aboard a Mitsubishi heavy industries H-IIA rocket. This has given a major boost to space cooperation between Japan and the UAE. Amal is set to reach Mars by February 2021, which will mark the year the UAE celebrates 50 years since the country’s formation. It points out that the launching of Amal was well planned in line with the celebration of 50 years of the country’s formation. “The UAE is now a member of the club and we will learn more and we will engage more and we’ll continue developing our space exploration program,” UAE Space Agency chief Mohammed Al Ahbabi told a joint online news conference from Tanegashima. The Amal statecraft costs $200 million and it is about the size of a small car, carries three instruments to study the upper atmosphere and monitor climate change. Japan’s services of such launches are known well for accuracy and on-time record. However, the providers are working to cut costs to be more competitive internationally. Japan also has its own Mars mission planned in 2024, where it aims to send spacecraft to the Martian moon Phobos to collect samples to bring back to Earth in 2029.
The objective of the UAE’S mission is to provide a comprehensive image of the weather dynamics and fundamentally, building a human settlement on Mars within the next 100 days. Omran Sharaf, the mission’s project manager said, “What is unique about this mission is that for the first time the scientific community around the world will have a holistic view of the Martian atmosphere at different times of the day at different seasons. Sheikh Abdullah Bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation has said that ‘Hope Probe’ exemplifies the distinctive strategic partnership between the UAE and Japan.
It is the first time that the UAE attempted to send a deep space mission, that of a mission to Mars. It clearly sends a strong message to the Arab youth that if the UAE is able to reach Mars in less than 50 years, then they certainly can do much more. Emiratis also believed that it represented a step forward for the Arab world and for scientists.
However, energy remains a key priority in the ongoing relations between the two countries which may contribute significantly to energy development and economic diversification in the UAE and Japan. Through space and strategic cooperation, the two countries are looking to expand and deepen the fields of cooperation. A successful mission to Mars will indeed be a major step for the oil-dependent economy seeking a great future in space. The launch of the hope probe demonstrates that effective space cooperation is a driving force for strengthening their bilateral ties. Hope is expected to begin transmitting information back to earth by September 2021.
China-Iran Deal and its implication for the region
From the past few years, the increasing partnership between China and Iran has raised major concerns among many countries. Sinking economy and the recent COVID crisis pushed Iran into the corner and China timely manifested itself as a perfect partner for Iran. The diplomatic ties between these two countries were established in 1971 and over the years China’s demand for energy and Iran’s isolation from the international community brings them together. The recent investment and security pact covered almost every sector from Telecom, banking, ports, railways and dozens of other projects. Though the secret details of the pact were leaked but soon rejected by Iranian officials.
In 2016, Xi Jinping made a state visit to Iran and then laid the structure of this deal. Soon after in 2019, China announced its plan to invest $ 400 billion. Iran’s economy is suffering greatly because of the U.S.A sanctions and needs a lifeline to revive their domestic market. Where one side, most of the companies from different nations pulled out their businesses from Iran, On the other hand, Chinese investment can play a significant role in Iran’s survival. This partnership between these two nations directly challenges U.S.A efforts to cut off Iran from the international market arena. China’s ever-growing aspirations to increase its involvement in the Middle East perfectly sync with the geostrategic location of Tehran. However, Iran’s ambition to become a regional power needs huge investment in its domestic market. That’s where both countries see themselves as an emerging partner.
China-Iran Economic Relationship
As a growing economy, China dependence on Iran’s oil is quite reasonable. Though this relationship is not just based on the energy, but even on the many different aspects. After 2016, China and Iran were agreed to increase their trading relations to $600 billion in the upcoming 10 years. The agreement was concordant with One Belt, One Road framework. A total of 17 agreements were signed, including one which relates to the Iran nuclear programme. The Chinese will help connect Tehran with Mashhad via their high-speed rail technology. After the sanctions levied by the USA and other western countrieson Iran, its dependence on China increased in recent years. The trading relationship is not only limit to purchase of crude oil but even China’s involvement inIran’s upstream and downstream production processes through major investments.From 2005, both countries signed seven upstream production agreement with each other. All these agreements involve the state-owned Chinese companies, which shows the significant presence of China in Iran.
In December 2019, Syrian president while giving an interview to a Chinese media expressed his willingness to join the BRI project and projected Syria as a perfect partner for the Chinese investment. Syria suffered a lot because of the decades of war and wanted to start the reconstruction activities in their country. Iran and China identified themselves as the ally of Syria and they even wanted to make a strategic nexus between these countries. For the reconstruction process, China is helping Syria from Port of Tripoli by setting up it as a logistic base for the reconstruction process. China wanted to link this port with Syria’s “Four sea strategy” and connect the BRI project to the eastern Mediterranean area. This whole economic bloc could challenge the American hegemony in the region. Iran and Syria are already strategic allies in this region and by adding China in this situation, it would promote the autocratic rule in the region to counter America.
The implication for the Region
Trump administration’s ‘maximum pressure’ policy towards Iran pushed many countries like India and Japan to cut off the trading ties with Tehran. This was seen as the major diplomatic blunder made by the U.S.A because of the one very simple reason that these countries could play a major role to find the middle ground for the talks between Iran and the west.As claimed by the reports, China will increase its partnership to build the ports too, getting a port in the Persian Gulf will provide the major boost to Chinese strategic plans. If China successfully expands its presence in Iran then it will lead to the major conflict between the U.S.A and China. Though China has already invested heavily on the Gwadar port, it will not hesitate to gain an upper hand in the Persian Gulf. From where Beijing can keep its eye on U.S.A movements in the region. India’s investment progress in Iran was slow and that’s the reason recently Iran started the railway track construction work on its own.
The growing instability in the region will further escalate, as the partnership will grow between these countries. China’s ambitions to expand its BRI projects and Syria’s “Four seas strategy” can become a foundation for future projects in the whole region. Syrian President Bashar Assad has promoted this four seas strategy since 2009 that would transform the Damascus into a major trading hub. Syria wanted to form an economic space between Iran, Iraq, Turkey and Syria that will shape a new bloc of nations in the region. This plan includes the four seas of the region from the Mediterranean, Caspian, Black Sea, and the Persian Gulf, which makes easy for these nations from investment to transportation.
The expanding partnership will lead to the architecture of a security structure between these three countries and will directly undermine the U.S.A presence in the region. The gradual consolidation of powers based on Anti-American and Anti-west sentiments can even form a proper security alliance where the inclusion of Turkey would be a possible scenario shortly. All these countries kind of having the same political regime one way or another, so for them it will be a great strategy to stop America’s presence from their domestic issues. If U.S.A wants to stop China’s involvement in the region, it needs to involve its key Asian partner, so that there will be some major power players in the region to maintain stability.
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