US President Donald Trump has reached China. He was given a warm welcome in Beijing. But very few people are able to digest that Trump, who had often been attacking China, suddenly came to meet Xi Jinping. It is being speculated that Iran may be behind this.
It is believed that in this meeting, Trump may seek help from China to end the ongoing costly war with Iran. However, experts say that he is unlikely to get the support he wants.
What could be China’s stance?
According to analysts, Xi Jinping may agree to encourage Iran to come back to the negotiating table, but China does not seem to be in favor of stopping economic support to Iran, its most important Middle Eastern partner, or stopping the supply of dual-use goods necessary for its army.
At the same time, Trump has many strong options to put pressure on China, which also includes the threat of imposing sanctions on big Chinese banks. But doing so could prove very costly for America as well.
Suspense on Iran and US agreement?
Hopes of any agreement to end the conflict between Iran and America now seem to be weakening. Due to this tension, oil prices have increased and the ceasefire between the two countries also seems unstable.
Why did Trump turn to China?
According to sources, the Trump administration believes that China is among the few countries that can convince Tehran’s leaders to compromise with Washington. China is the biggest buyer of Iranian oil, so America wants Beijing to put pressure on Iran. However, America has limited options to force China. In such a situation, Washington is trying to convince China that ending the war is in its own interest also.
What is the challenge before China?
China’s situation in this matter is considered quite complex. On one hand, it wants to keep Hormuz open, because about one-fifth of the world’s oil passes through this route and a large part of it destined for China also comes through this route. Iran, on the other hand, is a strategic ally of China and is seen as a balance against US influence in the Middle East.
How is this war beneficial for China?
Experts say that this war is definitely economically harmful for China, but it has diverted America’s military and diplomatic attention from the Indo-Pacific region, which is considered strategically beneficial for China.
Henrietta Levin, senior fellow at the Council for Strategic and International Relations, a Washington-based think tank, said Xi Jinping arrived at the meeting “very confident.”
He said that China is feeling in a stronger position due to Trump’s leniency in the tariff campaign last year and the diversion of American military resources due to the Iran conflict.
What did Trump say on China?
On Tuesday, Trump told reporters that he does not need China to persuade Iran. Referring to the US naval blockade, he said that the Iranian regime knows that the current situation is not sustainable in the long run. White House spokeswoman Olivia Wales said, “President Trump has all the strong options available and negotiators are working towards an agreement.”
Meanwhile, Chinese Embassy spokesperson Liu Pengyu said that Beijing opposes unilateral sanctions and China asks its companies to work in accordance with laws and regulations. He said that the most important priority at the moment is to prevent the conflict from flaring up again, and not to blame other countries.
What option does Trump have to put pressure on China?
Experts say that the Trump administration has limited options to put pressure on China. These include restrictions, tariffs and some other steps. America has already imposed a naval blockade on Iran. Trump had also raised the possibility of imposing duties on ships passing through Hormuz, which could have angered China.
Threat of ban on Chinese banks?
The US has previously imposed economic sanctions on some Chinese institutions that help evade Iran-related sanctions. But experts say that these steps did not have much impact on business. Brett Erickson, head of Obsidian Risk Advisors, said the US has so far avoided taking action against big Chinese banks that help trade with Iran.
Will conflict with China prove costly for America?
Experts say that America is avoiding taking direct action on the Chinese banking sector because it may lead to retaliatory steps from China. Edward Fishman, director of the Geoeconomics Center of the Council on Foreign Relations, said that action against any small or medium Chinese bank could again increase the economic conflict between the two countries. Due to this, the previous trade war between America and China and heavy tariffs may return, which will affect the global economy and inflation may increase in America.
What option does China have?
According to experts, if America targets big banks of China, then Beijing can weaponize the supply of rare earth minerals. China holds almost a monopoly in the processing and refining of rare earth minerals in the world. These minerals are considered very important for American industries.
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