China
Iran turns to China and India in the face of US sanctions
Author: Mohammad Soltaninejad, University of Tehran
In the face of the United States withdrawing from the Iran nuclear deal and adopting a ‘maximum pressure’ policy against Iran, Tehran is turning to China and India to circumvent US sanctions. In response, the United States is trying to deny Iran’s access to Chinese and Indian resources to pressure Iran into returning to the negotiation table.
Both China and India have long had the potential to become strategic partners to Iran, but efforts to establish such partnerships were undermined by the United States. Yet the idea of strategic partnerships remains alive due to the geopolitical and geo-economic factors that link China and India to the Persian Gulf, Afghanistan and Central Asia. A review of the dynamics of Tehran’s relations with Beijing and New Delhi suggests various avenues of cooperation in the face of US policies against Iran.
Beijing is showing a hesitant willingness to continue working with Tehran. China continued to import Iranian oil despite US sanctions and news leaked about negotiations over China’s prospective investment of US$280 billion in Iran’s oil and gas industry. Replacing the dollar with the renminbi as a transactions currency has facilitated China–Iran trade and financial cooperation.
To cope with the US policy of containment, China relies on Iran to diversify its energy supply. The majority of China’s oil imports currently pass through the Strait of Malacca, which is controlled by US allies in Southeast Asia. China can overcome this strategic predicament if Iran’s gas flow is connected to the Gwadar Port pipelines in Pakistan. This explains China’s readiness to invest in the development of the southeastern Iranian port of Chabahar from which Beijing can also access Afghanistan, Central Asia and Russia.
Iran also wants India’s support to counter US pressures. India preceded China in establishing constructive strategic ties with Iran. During the 2000s, Iran–India relations experienced unprecedented progress that led to India’s pledging to invest in Iran. Back then, Iran was trying to counterbalance the United States after it included Iran, with Iraq and North Korea, in the ‘axis of evil’.
The US invasion of Iraq after Afghanistan alarmed Iran further and pushed it to strengthen ties with second-tier powers, including India. India found developing ties with Iran beneficial. The International North-South Transport Corridor could connect India to Central Asia and Russia, and Iran could increase India’s influence in the Arabian Sea. Strategic and economic reasons to establish a partnership between Iran and India still persist. India has strategic interests in developing ties with Iran and is the greatest investor in Chabahar’s development.
In theory, India–Iran cooperation should be easier than that of China–Iran. Washington is more tolerant of India’s deepening relations with Iran as its interests in the Indian Ocean, the Arabian Sea and the Persian Gulf are best served if India and Iran work together.
With US troops leaving Afghanistan, India can protect US interests by fighting terrorism and strengthening the central government in Kabul. This would be difficult to achieve unless India has easy access to Afghanistan. Given the rivalry between India and Pakistan, Iran remains the best route that connects India to Afghanistan. This explains the United States’ decision to waive sanctions on India’s investment in Chabahar.
But in practice, India is showing reluctance to work with Iran after the United States’ withdrawal from the nuclear deal. India stopped purchasing Iranian oil in May 2019 and reduced the budget allocated to the development of Chabahar. Financial arrangements to facilitate trade between Iran and India are in flux, meaning that importing Indian medicine, food and other commodities will become more difficult for Iran. The major problem was that the suppliers of the equipment that Chabahar needs were not willing to make deliveries because they feared adverse impacts on their business with the United States.
Tehran is convinced that India cannot be the partner it needs to counter US sanctions. India owes its rising power status, in part, to its increasingly close relationship with the United States. No matter how valuable Iran is for India, New Delhi would not endanger its relations with Washington for the sake of preserving its friendship with Tehran.
Although Iranians are well aware that Beijing would not sacrifice its relations with the United States for its partnership with…
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
- China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
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