On this episode of China Uncensored,
China becomes Iran’s new BFF.
Hi, welcome back to China Uncensored.
I’m your host Chris Chappell.
The Iranian regime is in trouble.
And the Chinese Communist Party is coming to the rescue.
Like a prince rescuing a damsel in distress...
Or, you know, an evil prince rescuing an evil damsel in distress.
But first, a bit of background on what’s happening in Iran.
Back in May,
the Trump Administration pulled out of the Iran Nuclear Deal.
In August, they followed that up with tough sanctions on Iran.
Those covered access to US dollar banknotes,
the automotive sector, and exports of metals,
agricultural products, and...wait...carpets?
Sanctions on Persian rugs!?
Now I’m never going to see a whole new world!
Anyway, on November 4,
the US plans to impose sanctions on Iranian oil.
“Washington aims to bring Iranian oil exports down to zero
to force Tehran to re-negotiate a nuclear deal.”
And that spells trouble for the already struggling Iranian economy.
Over the past year,
Iran has seen 200% inflation.
Add that to the pressure of already high unemployment.
So it’s no wonder that Iran has seen more than 100 public protests
in less than 10 months.
And the protests haven’t eased up.
This next news video is from just after the Trump administration
announced it was withdrawing from the Nuclear Deal.
“The recent protests inside iran have been deadly,
with security forces turning their weapons on their own people
and promising to resolutely confront growing unrest
over economic struggles.”
What’s different about these protests—
compared to the big ones in 2009—
is that they aren’t targeted
at any particular political faction.
They’re against the entire system.
Here are protestors shouting “Mullahs, get lost.”
In Iran, mullahs are the religious leaders
who control the government.
In another city, the protesters shout
“This is a bloody month, the mullahs are falling.”
And in this video,
protesters are rejecting their government’s
anti-American propaganda,
shouting “Our enemy is here;
Iran’s leaders lie when they say it’s America.”
How did the Iranian regime respond to
the civil unrest and economic woes?
By saying it would bring America to its knees.
Yeah!
That’ll fix unemployment!
But fear not, where there’s an authoritarian regime in trouble,
a dictatorship that’s lost the support of the people,
or a system collapsing because of corruption—
the Chinese Communist Party will ride to the rescue.
Many traditional buyers of Iranian oil like South Korea,
India, and the EU have been cutting oil shipments from Iran
under threat of US sanctions.
So the Chinese regime has been stepping in to buy it up.
And at the same time,
cheap Chinese goods are flooding into Iran.
So China is filling the gaps left behind
by countries that are retreating.
China is now Iran’s biggest trading partner
and has traditionally relied on Iran’s oil
to fuel economic growth both inside China,
and as part of the Belt and Road Initiative.
In 2017, China imported a third of all Iranian oil,
more than any other country.
So when a French energy giant called Total
succumbed to US pressure,
and pulled out of a 5 billion dollar agreement
to develop a massive offshore natural gas field in Iran...
Guess what?
China stepped in.
The same thing could happen with an important seaport in Iran
that India has planned to invest half a billion dollars into.
The port is located in the strategic Gulf of Oman
and would give India access to Afghanistan,
Russia and Europe.
However, “Iran has indicated its willingness
to involve China in the project
should negotiations with India stall.”
Which would give the Chinese regime
a nice port on the other side of India,
just 100 miles away from the one they have in Pakistan.
And China stands to make out big on Iranian oil.
With other buyers cutting back,
Iran has been forced to store 13 million barrels
in offshore supertankers.
The Chinese Communist Party knows that
with Iran in a political bind,
it’s a great opportunity to buy up cheap oil.
Especially since other Chinese oil suppliers are struggling.
And China’s not just getting the oil for cheap.
They’re also getting it without all the risk.
Two of China’s largest state backed oil companies
have activated a clause to get around US sanctions.
So whereas in June,
nearly half of the vessels shipping oil from Iran to China
were operated by Chinese companies,
in July all of the tankers were operated
by the National Iranian Tanker Company.
That means, “Iran will cover all the costs and risks of
delivering the crude as well as handling the insurance.”
And yes, it was a mutual decision.
Of course the United States is aware that China
is the kink in its plan to sanction Iranian oil.
Which is why the US says China, like other countries,
faces the same threat of sanctions
for continuing to import Iranian oil.
Of course, China could always do what it did
when it was buying Iranian oil during the sanctions
before the Iran Nuclear Deal.
You see, most banks don’t want to finance Iranian trade
because if the US cuts off access to the dollar,
they’re sunk.
But the giant China National Petroleum Corp
literally has its own bank,
called the Bank of Kunlun.
It can use that to handle oil transactions,
because It “has very limited exposure
to the global financial system,
so is well placed to continue dealing with Iran...
The Central Bank of Iran has accounts at Kunlun
into which Chinese buyers have paid the equivalent of
billions of dollars for oil.”
See, at the end of the day, China needs oil.
And Iran needs to sell it.
So as the United States squeezes,
Iran is becoming more dependent
on the Chinese Communist Party.
But given what’s happened with a lot of countries
that do business with the Communist Party—
like Sri Lanka, Cambodia, and Djibouti—
it might not be all peaches and cream
for Iran in the long run.
And before you go,
it's time to answer a question
from a fan who supports China Uncensored
on the crowd funding website Patreon.
Alfred Schneider asks,
“Chris, I hear the CCP has done a great job cracking down
on subversive activities such as praying,
meditating, and reading the Bible.
What’s the latest news on how the good fight
is going against these dangerous extremists?”
Good question, Alfred.
Yes, the CCP is doing a great job cracking down on
people who believe in things.
Earlier this year,
authorities blew up a Christian megachurch with dynamite.
There’s a new law is in the works
that prohibits online preaching.
And just last week,
one of the largest underground churches in Beijing
got shut down...
because the pastors refused to install surveillance cameras
that would have allowed Chinese authorities
to benevolently monitor every church-goer.
And authorities across China have been forcing churches
to remove images of that subversive anti-Roman splittist—
you know, Jesus—
and replace them with wholesome images of
communist leader Xi Jinping.
But despite all this persecution—
or perhaps partly because of it—
Christianity is on the rise in China,
in both official and underground churches.
Thanks for your question, Alfred.
And thank you for watching China Uncensored.
Be sure to subscribe for more!
Once again I’m your host Chris Chappell.
See you next time.
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