By
annasmushkovichMonday, January 18th 2010
On Saturday January 16, 2010 the Security Council and Germany met to discuss economic sanctions on Iran. As of Saturday, the deadline to accept Russia’s proposal to enrich Iran’s Uranium in Russia had expired without an answer from Iran. In addition, the 2010 anti-proliferation conference is approaching and the U.S. would like sanctions in place before the conference. All of the countries sitting on the Security Council besides China had sent a high level diplomat to the discussion. China, however, sent a low level attaché to the meeting, signaling her dissatisfaction with the discussions. Sanctions without full international support, implemented by the U.S. and some European countries, are currently in place and have not been enough to stop Iran from desisting from its nuclear ambitions. The U.S.’s goal is to involve the entire international community, including Russia and China, the two countries who have the most influence on Iran because of their significant economic ties with Iran.
Not surprisingly, China attempted to block all efforts by the other powers to come to an agreement regarding Iran. China requested that the Security Council engage in more diplomatic talks with the Iranians before implementing any sanctions. To that end the Council scheduled a telephone conference to discuss the issue further.
China’s opposition to economic sanctions against Iran is three- fold. Firstly, China is a frequent human rights violator and consequently does not like to interfere in other sovereign’s national agenda. Secondly China has begun to have extensive economic involvement with Iran. Currently, China imports 15% of her oil from Iran. Considering that China has oil reserves of 25 days, it is very important to her that the oil flow is not interrupted by sanctions. China’s national oil company Sinopec has signed a 2 billion dollar deal to develop Iran’s Azadegan oil field. In addition, China has signed a 3.2 Billion dollar deal with Iran to import natural gas. Most importantly, China sells a significant amount of gasoline to Iran because Iran does not have oil refineries within its borders. Gasoline is Iran’s Achilles’ heel, if her gasoline flow was cut off, she would likely buckle under the Security Council’s demands and stop nuclear testing. The Obama administration has tried to push for a gasoline embargo, but European oil companies have lobbied their governments against such a move and China, whose oil companies are subsidiaries of the Chinese government has opposed the embargo as well. Finally, China has recently begun to establish an influence in the Middle East, aiming to diminish the U.S.’s standing in the region. China has formed the Shanghai Cooperation Organization, where Iran has observer status. In effect, the Chinese have linked their interests to those of Iran should it become the regional hegemon.
The sanctions favored by the U.S. State Department, would mainly target the Iranian Revolutionary Guards and their exporting and shipping businesses. The sanctions would also prevent any humanitarian or development loans from the World Bank and others. Some security services and politicians have indicated that the window of opportunity for sanctions is fast closing. They fear that Iran will soon test its first nuclear weapon, at which point, sanctions will have no effect on her.
Notwithstanding China’s recent behavior, there is still hope that the Chinese will join the other powers in sanctioning Iran because of their long-term interests. The Chinese do not favor nuclear proliferation and instability in regions where they have an economic or political interest. Since China must import all of its oil from abroad she cannot afford a nuclear Middle East in the long term. Should Iran attain nuclear weapons, regional tensions will rise between Iran and a number of countries. China imports a great deal of oil from Saudi-Arabia as well as from Iran: instability in both countries would put China in a precarious position. Hopefully, China’s long term interest in a stable Middle East will take precedence over short-term gain.