China’s Cooperation Crucial for Effectiveness of US Sanctions on Iran: New York Times

WASHINGTON: China’s role has become critical to US efforts to economically pressure and isolate Iran, with Beijing’s continued trade and energy ties with Tehran potentially limiting the effectiveness of Washington’s sanctions, The New York Times reported.

According to the report, China is not only a major trading partner of Iran but also its largest buyer of crude oil. A significant share of Iran’s oil exports goes to Chinese buyers, allowing Tehran to maintain a major source of foreign revenue despite US sanctions.

The New York Times reported that a substantial portion of Iranian oil is sold to small independent Chinese refineries, known as “teapots.” These refineries have relatively limited exposure to the international financial system, making them less vulnerable to conventional US sanctions.

The report said Washington’s challenge extends beyond China’s trade with Iran to the possibility of Beijing taking retaliatory economic measures against the United States. China has the ability to restrict exports of critical minerals that are important to US technology and defense industries, potentially creating significant economic pressure on Washington.

According to The New York Times, China demonstrated this leverage during last year’s trade tensions with the United States by restricting exports of critical minerals. The episode reinforced Beijing’s confidence in its ability to withstand economic pressure from Washington.

The report noted that Washington could face a difficult choice if it seeks to pressure China into cutting its commercial ties with Iran. Excessive pressure on Beijing could prompt retaliatory measures against US industries and further complicate the administration’s strategy toward Iran.

The New York Times also cited Chinese experts who view the Iran issue as an indication of Washington’s growing difficulties and limited options.

The report said the central question for the United States is how effectively it can isolate Iran economically without Chinese cooperation, while putting excessive pressure on Beijing could itself create economic costs for the United States.

China’s continued purchase of Iranian oil and maintenance of trade ties with Tehran therefore remain a major obstacle to Washington’s efforts to impose maximum economic pressure on Iran.