You can breathe now

For any of you that were holding your breath in the hopes that China would approve of tough sanctions, you can breathe now. Not because China will support them though.

From a press release two weeks ago, the Chinese have made it clear (if it wasn't already), that targeted sanctions will not receive Beijing's support. Now you're probably saying "But what about the progress made at the UN?" Well, sanctions are being developed, but they will fall far short of the targeted ones on petroleum exports that Washington wants. The only thing a UN Security Council resolution will do at this point will green light the tough sanctions Obama really wants for passage by Congress. And since the U.S. already has imposed several sanctions on the nuclear wannabe, it's doubtful that they'll work. I fully expect that Iran will become a nuclear state within my lifetime.

I won't claim to be an expert on Iranian affairs, but the nuclear issue seems to be the only thing Western countries are desperate to talk to Iran about. Moreover, rights to nuclear technology present a rally around-the-flag topic that Tehran can use to remain in power. Seems to me that it might be worthwhile to try to buy off Iran as opposed to whacking it with sanctions. Some people may resent rewarding Iran for its negative behavior, but sanctioning Iran is a lot like withholding a child's allowance until they behave. Sometimes it takes corporal punishment. However, no country (with the exception of Israel) is advocating a military strike.

I'll close off with a general criticism of sanctions. In order for sanctions to be effective, the targeted country needs to know what it should do to have them terminated. If one looks at UN Security Council resolution 1737, it says that Iran must halt all R&D on nuclear technology and enrichment. Considering that Iran needs alternative sources for energy production because of the sanctions currently placed on it, this is asking A LOT. No wonder Iran is pursuing what is in its interests.

Walk, don't run

I can't help but be impressed with The Economist. We all know it's an excellent news source, but Kal certainly gets his point across very well with his latest piece. He nails it right on the head when China says there are no clear options in response to Iran's nuclear program. Why you ask?

The last thing China wants to do is support sanctions tough enough to bring down the Iranian government. After all, it was only last June when opposition protesters were shouting death to Russia and China. Beijing can work with the current regime in Tehran and doesn't want a change in management. Now some people are suggesting that China's commercial interests are dictating its position on Iran. I'm quite skeptical about economics playing significant a role, as trade in 2009 between China and Iran amounted to only $15 billion, while almost $1 trillion between the U.S. and EU combined. Those numbers alone would suggest China would be better off cooperating.

So does Beijing want Iran to have nuclear weapons? Not if it destabilizes the region. Saudi Arabia and the other countries in the region certainly don't want their Iranian neighbor to have nuclear weapons and would have little problem increasing deliveries to the West at China's expense if they felt it was to blame. The issue at hand though is China likes the status quo - it gets everything it needs from the world to focus on its domestic development. To agree to sanctions would disturb the balance China enjoys. As Kal's piece points out, there aren't any clear options for China that satisfies the West's demands and allow it to focus on development. Until such an option presents itself, the Chinese government will drag its feet.

P.S.

The same bottom line can be applied to China's position on North Korea. The Chinese government would rather allow things to progress naturally rather than take any action that carries more risk than reward.

Hu goes to Washington

Chinese President Hu Jintao will be in Washington shortly to discuss a wide range of issues with Obama. Politico has a good piece on the occasion, so I refer you all to it here as opposed to detailing it myself.

I'm looking forward to the statements issued during the time that Hu is in the U.S., as they'll provide some idea of where the PRC stands on things. What will be most interesting in my opinion is the disarmament discussions, as the PRC is rapidly increasing its nuclear arsenal (may have 700 nuclear missiles by 2020, compared to the 1,700 held by the U.S.). Moreover, Hu's comments on the issue will solidify the Chinese position on Iran's nuclear program.

Break out your Chinese green tea and stay tuned!

Cloudy with a chance of thunderstorms

No, I haven't sacrificed my studies at Fletcher for a career in meteorology, nor am I trying to predict any weather. The title instead is my expectation of Sino-U.S. relations for the next few years.

The New York Times is running a story about the differences in priorities between China and the United States. I think they hit the nail on the head about why the United States and China can't seem to agree on anything, and made a plausible argument for why China will come around and do things the American way (China doesn't want to be seen as the bad guy in the global community).

However, the piece itself is short on why the Chinese government maintains its current position on the variety of topics raised (Renminbi valuation, Iran, and American job creation). As I see it, China can't change its policies on these issues because of domestic concerns. If China were to allow its currency to appreciate (read increase) in value, then its exports would become more expensive, something that companies and consumers don't like. On Iran, China enjoys a strong position serving as the only major economic power investing in the country. As a result of the sanctions and growing Russian dissatisfaction, Iran increasingly relies on China for investment. Moreover, China benefits from the natural and energy resources it is able to extract from the country. China would love to see job creation in the States to increase demands for its exports, but it won't sacrifice Chinese jobs to make it happen.

The article mentions China's sovereignty concerns for not cooperating, but I think this misses the point. The Chinese government may very well use the sovereignty excuse for not cooperating, but really it's because the changes required of it would harm the Chinese economy and by extension domestic society. Going forward I think we can expect to see more of these instances, where deriving mutual benefit will be more difficult. However, just because something is difficult does not mean it isn't worth pursuing. After all, you don't let cloudy skies prevent you from getting things done. Neither should the American or Chinese governments.