Source : INDIA TODAY NEWS
The US campaign to tighten pressure on Iran’s financial links around the world may face a major limit in China, Tehran’s biggest trading partner and leading buyer of its oil. The issue has come up as President Donald Trump prepares to host Chinese President Xi Jinping next month while trying to keep a fragile trade truce between the two countries intact.
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Treasury Secretary Scott Bessent this week announced “Operation Economic Outcast”, but did not spell out how the Trump administration would act against China. That has raised doubts over how effective the new push can be when Washington is trying to isolate Iran without setting off fresh tensions with Beijing that could hurt the US economy.
Edgard Kagan, senior adviser and Freeman Chair in China studies at the Centre for Strategic and International Studies, said Bessent’s announcement appeared designed to avoid upsetting the planned summit. “The announcement yesterday was very careful in my view to avoid specifics (against China), which could have led to a disruption in the summit,” Kagan said on Tuesday. “For Xi, a state visit to Washington is a big deal; and for Trump, hosting it is a big deal.” He said both sides now have “a dance to do” and added: “I think the real question is, is there room to push (the Chinese) to reduce what they’re doing with Iran, to put more pressure on the Iranian regime in a way that doesn’t lead them to say, ‘This is unreasonable, and we’re not going to comply.'”
Responding to the US move, Beijing said its cooperation with Iran has always been “within the framework of international law”. China receives more than 80 per cent of Iranian oil shipments, though usually through indirect channels. Chinese foreign ministry spokesperson Lin Jian said China-Iran cooperation “should not be disrupted or undermined” and added: “China is closely monitoring relevant developments and will take all necessary measures to resolutely safeguard its own rights and interests.” He also repeated China’s opposition to “illegal unilateral sanctions”.
Kagan described Beijing’s response as “a holding response” and said China was likely to do the minimum needed without openly confronting Washington. “They’ve tended to be careful not crossing explicit red lines, but they haven’t addressed the spirit of what the US has sought,” he said, pointing to practices such as ship-to-ship oil transfers that can hide the origin of Iranian crude and help evade American sanctions.
Sun Yun, director of the China programme at the Stimson Centre, said China would not support the new campaign if the US aim was to wreck Iran’s economy and bring down its government. But, she said, “if the goal is to exert enough pressure for Iran to make concessions on the Strait of Hormuz and potentially ending the conflict, I think China can and will demonstrate its cooperation without having to completely sever ties with Iran”. She added: “China only needs to do enough to demonstrate it is cooperating, such as cut back on its oil imports from Iran.” With the Trump-Xi summit only weeks away, she said, “neither side wishes to have a major escalation bilaterally at this point” and added, “China needs to give the US something, and the US needs to understand and accept that it is not going to be everything US asks for.”
So far, the Trump administration has avoided sanctions on major Chinese companies or banks linked to the US financial system. On Monday, the Treasury Department said it was penalising nearly 60 Iran-linked entities, accusing them of involvement in Iran’s nuclear and missile programmes, cyber activities and oil shipments. It also targeted several entities and individuals in mainland China and Hong Kong for supporting Iran’s missile and nuclear programmes. Among them were a China-owned crude oil tanker accused of carrying millions of barrels of Iranian oil to China this year and a Hong Kong-based business accused of helping the shadow fleet that moves Iranian oil.
Ali Wyne, senior research and advocacy adviser on US-China relations at the International Crisis Group, said Trump was unlikely to harden his line on China just before Xi’s visit. “Given how keen Trump has been to maintain both a trade truce between the United States and China and his personal rapport with Xi, he seems unlikely to do a volte-face just a month before Xi’s state visit and adopt a highly confrontational posture,” he said. Xi’s visit could also clear the way for Trump to travel to China in November for the leaders’ summit of the Asia-Pacific Economic Cooperation grouping.
In his second term, Trump has taken a less hawkish line on China than he did in his first presidency and has often spoken of his good relationship with Xi after last year’s trade war marked by escalating tariffs on both sides. The US business community has also welcomed Xi’s visit as a positive sign, even if any major agreements remain uncertain. Craig Singleton, senior director for China at the Foundation for Defence of Democracies, said, “Beijing is betting that Washington will be reluctant to jeopardise the current leader-level dynamic by targeting major Chinese entities before the summit.”
For now, the US push to tighten economic pressure on Iran appears tied to a broader balancing act with China. While Washington has announced fresh penalties and Beijing has defended its ties with Tehran, analysts say both sides are likely to avoid a sharper clash before Trump and Xi meet next month.
With PTI Inputs
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SOURCE :- TIMES OF INDIA
