Need for oil draws China close to Saudis and Iranians
As tension spreads in the Middle East, China lines up to lend its support to current Saudi and Iranian leaders. This is what is gathered from China's recent foreign policy maneuvers, particularly with regard to its diplomacy on oil matters.
Finding a solution to China's energy needs plays a primary role in the direction Beijing is taking, especially with regard to managing its international relations.
Throughout Asia energy and raw material problems are becoming ever bigger factors. The situation is critical particularly in terms of electrical energy supply (produced at plants running on combustible oil). Power failures and long black-outs occur frequently in India, China and other countries of Southeast Asia, affecting both domestic and industrial use.
Asia is the region which, more than any other, depends on Middle East oil and especially on the Persian Gulf petroleum. More than 60% of Chinese crude imports come from 5 Middle Eastern countries and Africa.
Last January Shell Oil Company (together with ChevronTexaco and ExxonMobil) discovered and stated it didn't want to honor a deal for Australian liquefied gas supplies destined for southern China. The news brought China's vulnerability for energy out in the open. Since then China diplomatic initiatives have multiplied in order to procure itself more energy supplies.
At the end of January Chinese President Hu Jintao traveled to Egypt, Gabon and Algeria to discuss matters related to oil supplies. On March 7 Sinopec (China's national petrochemical company "China National Petrochemical Corp.") signed as deal with Aramco to search for natural gas fields in a vast area of Saudi Arabia. Some weeks earlier, a similar deal was struck and signed with Qatar. On March 18 the Chinese news agency Xinhua announced that a Chinese state-run company Zhuhai Zhenrong Corp. had signed 20 billion dollar deal to purchase 110 million tons of liquefied natural gas from Iran staring in 2008 over a 25-year period.
In turn Zhuhai Zhenrong Corp, a purely commercial operation, will supply gas to the China National Offshore Oil Corp, CNOOC), partially compensating the missing Australian supplies. Finally last Apr. 3 Chinese minister of commerce, Bo Xilai, met with Saudi oil and raw materials minister, Ali Bin Ibrahim Al-nuaimi, in Beijing to discuss the possibility of intensifying bilateral relations, perhaps in exchange for supplies and the stabilization of oil prices.
It is likely that such initiatives by Chinese leadership, even if legitimate and necessary, have counter-return policies connected to them. This would explain why in order to sign the deals it was necessary to organize official state visits. We must not forget that Saudi Arabia is home to the Wahabi ideology shared many international terrorist groups.
One must also bear in mind China's increased commercial relations with Iran.
Such relations have been boosted right at a difficult time of Iran's international isolation, where a fundamentalist faction has gain taken the reigns of power, forcing the Islamic Republic's constitution to manipulate election laws to crush reformist candidates.
These days Iran is also suspected of supporting Shiite groups that are more radical than their Iraqi counterparts and which have sparked revolts against Coalition troops.
This week Iran announced that in June it will commence construction of a heavy-water experimental reactor capable of producing plutonium, which might be used toward military ends.
Chinese state companies are increasing relations with Iran right when the Islamic Republic is suspected (like never before) of being on the verge of supplying its own nuclear weapons. For China there is a specific economic consideration involved: a prolonged upswing in energy prices will jeopardize the growth of the Chinese economy.
If such is the case Beijing risks being rocked by huge social tensions found throughout the country and held at bay thanks only to its strong rhythms of economic growth. Without regular energy supplies and at a low costs, China's current leaders run serous personal risks.
Is it possible that China has made counter-return policies with Iran and Saudi Arabia, giving rise to a new international political axis? We think so.
Last March 10 the People's Daily quoted the most telling words of deputy foreign minister, Wang Yi: during a lecture on international politics, held at Beijing University, Wang Yi said to the over 1000 students in attendance that Chinese foreign polices was "at the service of China's economic development."
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19/01/2005
16/04/2018 10:17
