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China poised to profit from Iran’s predicament
Published: 21 February, 2012, 19:36
China poised to profit from Iran’s predicament. (Reuters / Santos / Handout DG)
(10.4Mb) embed videoTAGS: Oil, Iran, China, Daniel Bushell, Prices, Global economy
Iran is struggling to find buyers for its oil in South-East Asia. Under pressure from Western sanctions, the Islamic Republic has been pinning its hopes on increased sales to China.
China, the major consumer of Iranian oil, has reduced its purchases to the lowest level during last five months. According to Business Week, Beijing reduced Iranian oil imports by 14%, while the total amount of China’s oil imports rose by 6.8 %.
Experts note that China has always kept political rivalries out of its business dealings and it is going to take full advantage of sanctions imposed on Iran by the West. The actual situation with Iran has strengthened China's negotiating position, while Iranian options on the global market are quite limited. Thus, China has a good chance to pay less.
And it is not the first time Beijing has imposed its conditions to business partners and exerted pressure to lower prices.
“Showing who is in charge, China turned away several times from Iran to Saudi Arabia for supply. The same with Russia with payments, repeatedly underpaying and even refusing to pay for oil received,” says RT correspondent Daniel Bushel.
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7 comments
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@New World Order
Sir,you cannot blame China for looking after its own interest first,tell me which country isn't,there is no such country in the world.I do not think it is in China interst to let more countries to possess nuclear weapons,neither does Russia.They are playing this game bacause Iran can divert their conflict with USA which is their biggest customer and biggest debtor.Do not forget that both Russia and China are facing their own Muslim problems,of course Iran knows that neither power would really support it.But I think the trouble is with Iran for playing the wrong strategy and get into this tight spot which no one is comfortable.
China plays a beautifulm game in Iran in comparison to its poor performance in Syria.China has calculated that there would be no war in Iran and that Iran would be left with few customers for its oil.all the while,the two sides fail to agree on the price,so long as Iran can stay as Anti-Europe,USA,China woul;d have easier time to talk price,and squeezeb it down,Iran would be the ultimate loser but it has no alternative,unless it gives up political power.
The US and the EU, by their 'silly' sanctions imposed on Iran have shot themselves in the foot. At the moment, the Iranian market is widely open to India, Africa and the Asian markets while remaining shut to the EU and the US markets. So the question is, who wins and who looses? Today, due to these sanctions, escalating oil price has become Iran's true weapons of mass destruction. Meanwhile "The EU's oil embargo on Iran = economic suicide", -Max Keiser