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China extends commercial ties with Iran
China has overtaken the European Union to become Iran's largest trading partner, according to a new analysis of the commercial ties between the two countries.
The growing business links between Beijing and Tehran underline China's reluctance to agree to any further economic sanctions on Iran as western countries escalate their campaign to contain the country's nuclear ambitions.
The announcement by Mahmoud Ahmadinejad, the Iranian president, that Iran will start enriching uranium to 20 percent purity has given renewed impetus to western calls for the United Nations Security Council to impose more sanctions.
While Russia has softened its opposition to placing more pressure on the Iranian economy, China has not.
Official figures say the EU remains Tehran's largest commercial partner, with trade totaling $35b in 2008, compared with $29b with China.
But this number disguises the fact that much of Iran's trade with the United Arab Emirates consists of goods channeled to or from China. Majid-Reza Hariri, deputy head of the Iran-China Chamber of Commerce, said that transshipments to China accounted for more than half of Tehran's $15b (€10.9b, £9.6b) trade with the UAE.
When this is taken into account, China's trade with Iran totals at least $36.5b, which could be more than with the entire EU. No definite conclusion is possible because it is unclear how much of Iran's trade with Europe is channeled via the UAE.
Iran imports consumer goods and machinery from China and exports oil, gas and petrochemicals.
Today, China depends on Iran for 11 percent of its energy needs, according to the chamber.
In the past, China has allowed the passage of three UN resolutions imposing sanctions on Iran. But the country's ambassador emphasized the need for talks.
""Our approach is that dialogue and negotiations always produce better results,"" said Xie Xiaoyan, the Chinese ambassador to Tehran. ""Sanctions will not produce the results set up (by the west), no matter how crippling.""
These words were echoed by Yang Jiechi, the Chinese foreign minister, who said last Thursday: ""To talk about sanctions at the moment will complicate the situation and might stand in the way of finding a diplomatic solution.""
However, some analysts believe this stance may change. Yin Gang, a Middle East expert at the Chinese Academy of Social Sciences, said that the extent of China's relations with Iran was often over-stated: ""China is extremely cautious in dealing with Iran, even over trade and energy.
""China would not keep a very close relationship with Iran because this could damage its relationships with lots of other countries.""
If China were to prevent the Security Council from passing UN sanctions, the U.S. and the EU would retain the option of imposing their own unilateral measures. The question is whether Iran's links with China would cushion the blow.
Already, American and EU energy companies have withheld investment in Iran's vital oil and gas industries. China has sought to fill the gap by signing multi-billion-dollar agreements to develop oil and gas fields.
tehran times : Beijing extends commercial ties with Tehran
China has overtaken the European Union to become Iran's largest trading partner, according to a new analysis of the commercial ties between the two countries.
The growing business links between Beijing and Tehran underline China's reluctance to agree to any further economic sanctions on Iran as western countries escalate their campaign to contain the country's nuclear ambitions.
The announcement by Mahmoud Ahmadinejad, the Iranian president, that Iran will start enriching uranium to 20 percent purity has given renewed impetus to western calls for the United Nations Security Council to impose more sanctions.
While Russia has softened its opposition to placing more pressure on the Iranian economy, China has not.
Official figures say the EU remains Tehran's largest commercial partner, with trade totaling $35b in 2008, compared with $29b with China.
But this number disguises the fact that much of Iran's trade with the United Arab Emirates consists of goods channeled to or from China. Majid-Reza Hariri, deputy head of the Iran-China Chamber of Commerce, said that transshipments to China accounted for more than half of Tehran's $15b (€10.9b, £9.6b) trade with the UAE.
When this is taken into account, China's trade with Iran totals at least $36.5b, which could be more than with the entire EU. No definite conclusion is possible because it is unclear how much of Iran's trade with Europe is channeled via the UAE.
Iran imports consumer goods and machinery from China and exports oil, gas and petrochemicals.
Today, China depends on Iran for 11 percent of its energy needs, according to the chamber.
In the past, China has allowed the passage of three UN resolutions imposing sanctions on Iran. But the country's ambassador emphasized the need for talks.
""Our approach is that dialogue and negotiations always produce better results,"" said Xie Xiaoyan, the Chinese ambassador to Tehran. ""Sanctions will not produce the results set up (by the west), no matter how crippling.""
These words were echoed by Yang Jiechi, the Chinese foreign minister, who said last Thursday: ""To talk about sanctions at the moment will complicate the situation and might stand in the way of finding a diplomatic solution.""
However, some analysts believe this stance may change. Yin Gang, a Middle East expert at the Chinese Academy of Social Sciences, said that the extent of China's relations with Iran was often over-stated: ""China is extremely cautious in dealing with Iran, even over trade and energy.
""China would not keep a very close relationship with Iran because this could damage its relationships with lots of other countries.""
If China were to prevent the Security Council from passing UN sanctions, the U.S. and the EU would retain the option of imposing their own unilateral measures. The question is whether Iran's links with China would cushion the blow.
Already, American and EU energy companies have withheld investment in Iran's vital oil and gas industries. China has sought to fill the gap by signing multi-billion-dollar agreements to develop oil and gas fields.
tehran times : Beijing extends commercial ties with Tehran
