Skip to main content

The east-bound wind causes a storm in the West: Iran-China sign long-term trade agreement

by Behrooz Ghamari Tabrizi

A few months after the publication of his remarkable book, Adam Smith in Beijing, I had an illuminating conversation with Giovanni Arrighi about the significance of China in world history. The late sociologist was interested in knowing more about the subject of my scholarship–modern Iran and the Iranian revolution. When he saw my puzzled face, he told me that he believes that all this apprehension in the west about Iran, is actually rooted in apprehension about China. 

Arrighi thought that if there were any “mainstream” of world history, it ought to be located in the story of China, the only civilization that has shaped the world as a hegemon over many millennia with the exception of the last 250 years. The rise of the West, according to him is an aberration and China will define the future of the world history. 

For China to play that role, it needs sources of energy to feed its expanding economy and a firm foothold in the world trade network. And there is Iran with its vast sources of oil and natural gas, located in a key strategic position guarding the flow of oil from the strait of Hormuz and offering open access to the Indian Ocean trade routes. I do not subscribe to the view that the U.S. position on Iran can be reduced to a reflection of the American political establishment’s attitude toward China. But there indeed are signs that Iran’s east-bound realignment toward China is making possible a major transformation in the world political and economic order.

The fear in the West of a rising China became more acute this week with the announcement of a memorandum of understanding (MOU) between Iran and China of a 25-year trade agreement. Although the text of the agreement has not been released, news outlets around the world were quick to sound the alarm of a pending major transformation of the balance of power in the Middle East and beyond. 

Many observers have seen the move as a direct consequence of the Trump administration’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran Nuclear Deal. The Trump administration miscalculated the vulnerability of the Iranian government to his regime of maximum pressure. Trump and his perpetually hawkish advisers believed that withdrawing from the nuclear deal, and re-imposing draconian sanctions against Iran, would compel the Islamic Republic either to surrender to the demands of its international foes, or to face the wrath of its own sullen citizens whose livelihood the sanctions has directly threatened.

The latter did materialize last November, but it was met with a swift and brutal reaction by the Iranian security forces. The protests spread in many towns and cities around the country, but failed to sustain itself in the face of the state’s violent clampdown that left hundreds of protesters dead (according to the government’s own estimate 230 people were killed) and thousands arrested.

In addition to the state repressive apparatus that contained the protests, Iranians also remain deeply inimical toward an American policy that invests in inflicting suffering on people in order to encourage them to rise up against their own government. Iranians are well-versed in this ploy, which offers a painful reminder of Saddam Hussein’s justification of bombing Iranian cities. In order to stop the bombings, Saddam shamelessly declared, Iranians need to topple their regime.

The U.S. pulled out of the JOCPA hoping that the American withdrawal will render the agreement practically null and void. The Trump administration reinstituted crippling sanctions against Iran and exerted pressure on the EU and the UK to follow suit. 

Although the Europeans voiced their displeasure with the U.S. policy, they could not deliver their share of the agreement under the mounting American pressures. This was a sobering moment for the Europeans as they witnessed the United States’ ability to impose its political will onto the European banks and corporations. By threatening to levy sanctions against European banks and corporation that invest in the Iranian economy, in effect, the U.S. undermined the sovereignty of the EU members over their own financial and economic affairs.

Whereas the Europeans saw in the U.S. regime of maximum pressure against Iran the limits of their autonomy, China saw an opportunity for the realization of its global development strategy, known as Belt and Road Initiative. The initiative that was adopted in 2013 envisions a massive expansion of trade networks by investing in infrastructures of land and sea transport that will eventually establish a seamless web of production, distribution, and consumption of goods: a silk road for twenty-first century, as the Chinese promote the idea.

Iran figures in this strategy mightily, both in terms of the extension of the belt, i.e. roads and railway, and road, i.e. the sea routes, as well as the source of energy that the Chinese expansionist machine requires. Today China imports 10-million barrels of oil per day to fuel its economy. Theoretically, Iran can provide half of that need for the next two decades. If China’s plans to replace fossil fuel with the renewable energy do not pan out, Iran will remain a major source to calm the Communist Party’s anxieties about the future of the silk road for twenty-first century. 

The details of the trade agreement have not been released and both China and Iran still need to ratify it. The early reports indicate that China has agreed to a $400-billion investment over the next 25 years in the Iranian oil, gas, and transportation infrastructure. The investment will be frontloaded for the first five years and will also include cooperation in military and intelligence and a strategic alliance between the two countries over the security of the Persian Gulf trade routes. The agreement was first conceived during the Chinese premier’s visit to Iran in 2016. In all likelihood, it is going to end the Trump administration’s gambit to cajole the Iranian side to capitulate and entertain a new nuclear treaty with the United States and its Western allies.

The Iran-China agreement, if signed and ratified, will leave the Iranian exilic opposition, those who banked on the American maximum pressures on the Islamic Republic to gain political points, in an untenable position. These critics, who were also joined by the U.S. State Department, have compared the proposed bilateral pact to the 1828 Treaty of Turkmenchay between Persia and tsarist Russia, under which the Persians ceded control of the vast territories in the South Caucasus that included today’s Armenia, Azerbaijan, Abkhazia, and Georgia.

Ever since mid-nineteenth century, in the Iranian political lexicon, “Turkmenchay” has remained a point of reference to the vilest encroachments on the Iranian sovereignty. In the past two centuries, these encroachments have always been mounted by the same Western powers who forewarn Iranians today of the colonial consequences of surrendering the country’s vast resources to the Chinese.

No one knows whether this bilateral treaty would one-sidedly satisfy the Chinese imperial ambitions, a scenario that has played out in China’s appropriation of African port cities and mining towns. But one thing is clear that the objections of the U.S. and their Iranian supporters, whatever those objections might be, do not stem from their concerns for the protection of the Iranian sovereignty and Iranian peoples’ interests.

Source, links:



Comments

Popular posts from this blog

Trump's tariffs: A unique opportunity for BRICS and the Global South to fully escape from dollar tyranny

globinfo freexchange   Does Trump know what he is doing? Well, yes and no. While many interpretate his latest move, mostly as an attempt to halt China, his main goal is to give the final blow to the neoliberal order on behalf of his oligarchs .  From this perspective, Trump's unprecedented decision to decide mass tariffs against almost everyone, was an act of strategic hit against the global free market neoliberalism, with the financial capital  at its top. And that's because this dominant-for-almost-half-century system, identifies restrictions and protectionism as major threats against its own existence. In other words, Trump acted as a commander of the capitalist faction that wants to beat its neoliberal rivals and put itself in charge, through a new transformation of capitalism into a 21st century corporate feudalism.   Concerning China, Trump's move may have some negative impact on its economy for a while, since China has chosen to partially play by the rule...

Deranged euroclowns want to revive a nazi-origin project!

globinfo freexchange   Behind the ridiculously cartoonish latest spot of the EU that gives "instructions" to the European citizens on how to deal with a major crisis during the first hours, lies a secret desire.    The deranged euroclowns of the crypto-fascist extreme center , are trying to build up a condition of consent inside the minds of Europeans, which is related to their biggest wet dream: an autonomous imperialist European army. The idea was not born suddenly because of Trump's hostile attitude against his own allies. From the early 50s, pan-European networks of neo-Nazis were created. In May 1951, the European Social Movement (MSE) was founded in Malmö, Sweden. Essentially, it was about projecting the ideology of the German SRP on a pan-European level. The MSE, which would remain active until the 1980s, proclaimed the need for Europe to emancipate itself from the divisive tutelage of the USA and the USSR, called for the defense of the “European race” against th...

Neoliberalism Needs To Go

Second Thought  

Netanyahu BRAGS About Genocide - And Our Media COVERS IT UP

Owen Jones  

Google Imports Ex Israeli Spies, The Genocide Resumes, Cruel Britannia

by Nate Bear   Part 3 - Cruel Britannia   The UK is moving ahead with large welfare cuts for disabled people, including those with cancer. On TV the other day, the UK’s health secretary Wes Streeting said that people with cancer should be in work, not at home resting. Alongside this, the government has said that to cut youth employment it will push young people to join the army. This, of course, is in the context of a massive expenditure on military weapons in the face of the Russian bogeyman.   What’s happening in the UK under a nominally centre-left Labour government is a good reminder that there is never a lesser evil if your leaders are neoliberals. Balancing the books on the backs of the poorest and most vulnerable in society is the north star of all neoliberals, whether they call themselves centrists, left wing or right wing. Cruelty is the policy and the point.    Yet the last few years have also been a good reminder that everything is a choice. Cov...

Trump Speeds Up FALL OF THE WEST With Tariff War

Owen Jones     Related:   Trump's tariffs: A unique opportunity for BRICS and the Global South to fully escape from dollar tyranny

UN rapporteur Francesca Albanese: World is watching a live genocide in Gaza and doing nothing

The New Arab   As Israel’s war on Gaza enters its 19th month, UN Special Rapporteur Francesca Albanese is sounding the alarm louder than ever: the world is watching a live genocide — and doing nothing to stop it. In an exclusive interview with The New Arab , Albanese describes the devastation in Gaza as unparalleled since WWII. Entire neighbourhoods lie in ruins, tens of thousands are dead, and 91% of Gaza’s population is at risk of malnutrition. Over 60,000 children show signs of cognitive impairment due to starvation.  “This is not just war. This is genocide in real time,” she says. “What we are seeing now is the destruction of a people who refuse to leave.” Despite UN mandates and international law, Albanese says the global system is paralysed, and governments, corporations, and even universities are complicit. “If Palestine were a crime scene, it would bear all our fingerprints.”

US Official EXPOSES Truth About Gaza From The Inside

Owen Jones  

Google Imports Ex Israeli Spies, The Genocide Resumes, Cruel Britannia

by Nate Bear   Part 2 - The genocide resumes   The day before the Wiz deal, Israel resumed its genocide of Gaza with an unhinged bloodthirsty rampage, the deadliest twenty-four hours in the last nearly eighteen months of genocide. A high bar had been set, and it was cleared. They attacked at night, itself an act of utter cowardice and sadism, and slaughtered hundreds as they slept in tents. In tents. Close to one hundred babies and young children were killed. The overall death toll exceeds 400 and is rising. As expected, there is not a flicker of condemnation from world leaders, many of whom are arming Israel with the weapons and intelligence it needs for genocide. The British air force spent the ceasefire period gathering intelligence on Palestinians and feeding it to Israel so they could restart the mass murder efficiently.  The genocide is the end of the west. It destroys any claim to moral superiority over Russia, China, Iran or any of the officially designated bad g...