The Obama administration has agreed to let numerous countries be exempt from penalties under a harsh new set of economic sanctions on Iran’s oil sector, but has refused to grant China – a major importer of Iranian oil – such exemptions.
The new round of sanctions are scheduled for June 28 and the U.S. has given waivers to India, South Korea, Turkey, and four other countries. They can now continue to do business with Iranian oil, so long as they voluntarily reduce their imports by significant margins.
China buys as much as a fifth of Iran’s crude exports and remains the one major trading partner who will still face international penalties for continuing to import Iranian oil.
The Obama administration has been ramping up the pressure on China with an increasingly antagonistic foreign policy. The so-called ‘Asia pivot’ is an aggressive policy that involves surging American military presence throughout the region – in the Philippines, Japan, Australia, Guam, South Korea, Singapore, etc. – in an unprovoked scheme to contain rising Chinese economic and military influence.
This bellicose posture has increased tensions between the U.S. and China and between China and its weaker neighbors, like the Philippines. A recent report from the Center for Strategic International Studies predicted that next year “could see a shift in Chinese foreign policy based on the new leadership’s judgment that it must respond to a U.S. strategy that seeks to prevent China’s reemergence as a great power.”
“Signs of a potential harsh reaction are already detectable,” the report said. “The U.S. Asia pivot has triggered an outpouring of anti-American sentiment in China that will increase pressure on China’s incoming leadership to stand up to the United States. Nationalistic voices are calling for military countermeasures to the bolstering of America’s military posture in the region and the new U.S. defense strategic guidelines.”
And now, the sanctions policy on Iran is giving the administration an opportunity to target China some more. The sanctions themselves are a mere power play: their supposed justification is to pressure Iran to reassure the West of the peaceful nature of its nuclear program, but the consensus in the U.S. military and intelligence community is that Iran has no nuclear weapons program and has demonstrated no intention of developing one. The sanctions are really about authority and domination.
And that seems to be the case for the secondary targets of the sanctions regime, like China. In order to get international support for the sanctions, Obama needed to grant exemptions to various allies whose economies depend on Iranian oil. But not China.
“I wouldn’t be surprised to see China raked over the coals a little longer before a decision is taken on whether to grant them a waiver,” Bob McNally, head of the Washington-based oil consultancy Rapidan Group, told Al Jazeera.
The administration won’t comment on the refusal to grant China the exemptions, but some think it is just to bully someone. “If the administration is willing to exempt all of these countries, who will they make an example out of?” said US Representative Ileana Ros-Lehtinen, a Republican and chairman of the House Foreign Affairs Committee.
This sanction was created or influenced by AIPAC. Both creators of the bill Mendez and especially Mark Kirk receive AIPAC contributions. Mendez mentioned he consulted AIPAC in crafting the sanctions.
"The clear evidence is: because the lobby wanted this amendment and these guys feared for their political lives. AIPAC led the charge. AIPAC rolled the amendment out 3 weeks ago, and then led a letter-writing campaign to US Senators on the amendment, known as Kirk-Menendez (in part for the Senator from AIPAC, Mark Kirk of Illinois). Here's the AIPAC memo from last month:" http://mondoweiss.net/2011/12/aipac-posterizes-ob…
So AIPAC is forcing the US and Obama to go against China and India. All thanks goes to AIPAC and their misinformation of Iran seeking to develop nuclear weapons
I doubt if the US would dares to sanction China for fear that China may release into the markets all its dollar hoding, making each dollar worth 10 cents.
This is unlikely considering it would hurt china economically almost as much as the US. But i don't see how this has anything to do with limiting the power of china. At this point china is buying up the US and its resources one state at a time and virtually owns the entire state of Idaho as it is. And for anyone who don't believe me look it up. China is many things but victim of US aggression? Never.
How the hell does the United States determine who Iran can sell oil to? If the Chinese ignored these sanctions and did business with Iran anyway, what would the US do?
The US would lose influence in the world.
As much as anything else, I believe the administration's adventures abroad are about maintaining the USD as the world's reserve currency. We can see this going back to Bush and Iraq. Saddam decided to accept the Euro for oil, and that was the end of him. In the first days of the invasion, the banks were secured and privatized by the Coalition Authority. Fast-forward to Libya, and the "humanitarian" murders of thousands there. Gaddafi was pushing for a unified mideast currency backed by gold. In the first week, the banks were again secured and privatized.
The Libyan takeover was also a shot over the bow of China…a nation which had invested more in Libya, and Africa in general than any other nation in recent years. Lots of oil, lots of minerals in Africa (including rare-earth minerals used in weapon guidance systems). Add to that the strategic importance of controlling the Mediterranean (the only ocean which touches three continental shores)…and Africa is a desirable piece of property. This has been the plight of Africa and its people throughout history, unfortunately.
In-between, Mubarak was removed in Egypt because he was getting too friendly with Iran…refusing to allow U.S. planes to use Egypt as a staging ground to launch attacks against Iran. The U.S. puts these puppets in power, and simply disposes of them when they are no longer of any use.
China holds trillions in U.S. debt. To this point, they have not dumped much of it. But the threat is there, and China's economy is melting down…although we see little reporting on this. The recent agreement with Russia on oil payments, and the general warming of Chinese-Russian relations is a concern in Washington.
I believe the U.S. is on a collision course with China and /or Russia…sooner, perhaps than I had thought. Perhaps the war-hawks in the Pentagon do not wish to wait any longer to allow China's military to strengthen. How China or Russia will react to a U.S. invasion of Syria and/or Iran remains to be seen. Personally, I do not see the U.S. (or it's war-hawk partner, Israel) attacking Iran. It will be ugly (especially for Israel), and everyone involved knows it.
But desperate nations do desperate things. I see nothing good coming of the American empire's exploits around the world.
That same american empire might as well be a puppet of china at this point. Obama is virtually giving away american resources to china and selling off US land to chinese companies. U liberal morons are just to brainwashed to see it. There will never be a US china war cause china might as well own the US. Why would China wish conflict with a country that is ensuring it becomes the next global superpower?
All china has to do is to ask its money back and switch to Euro or gold.
China will crush Uncle Sam in its sphere of influence. Furthermore, the BRICS ( Brazil, Russia, India, China, and South Africa are going to open their own rival the IMF, and World Bank. These countries have agreed to trade in their own currencies, thus eliminating the dollar from their trading portfolios. The US is a terrorist state, and will be taught a very brutal lesson if it does not reverse course soon.
US will do china's bidding. Who do u think helped pay for all of america's wars? This is the thing u people aren't getting. China's government is no different then the US one. They are both part of the same corporate monster pushing for the NWO and one world government.
I would certainly hope China pays no attention to such sick demands, but takes the opportunity to increase its imports of oil from Iran. What an opportunity! And those countries that obeyed the US will have to look for new sources of oil. Ignore the US demands and weaken its influence – bullies should be ignored, most children know that.
China was also a secondary target of the Libyan war.
The arrogance of thinking they can rake anyone "over the coals" and not suffer the consequences!
US policy is hillarious.
Perhaps China should tell Hillary-Obama to stop buying oil from that ruthlessly repressive terrorist sponsor Saudi Arabia.
Anyhow, China should at least thank the US for promoting sanctions that enable China to buy Iranian oil at rock-bottom prices.
Unfortunately, it is not so funny since it is all designed to promote military build-up and conflict.
If I was China I would give Obama the finger and dump $100 billion worth of US debt just to give the US a taste.
Anyone who knows about US china relations and the symbiotic relationship around there economies know thats wishful thinking and never gonna happen.
Iran will drop the price of their oil. Sanctions like this can always be bypassed. China, if it wants, will get cheap oil from Iran thru backchannels.
Meanwhile, the Saudis will step up production, possibly creating a glut of oil, which will keep prices down until the election. Obama gets credit for doing something to deal with the Iranian menace to the free world, while at the same time keeping gas prices stable. Political theater.
Government by plastic street punk bigot wannabes and molesters does not work very well, does it.
US has shot herself on the feet –
1) China does not need to be told by the US especially when the Seller is willing to take your fiat currency instead of the other fiat currency, USD.
2) When the seller of real asset is willing to exchange goods for paper currency – trust is a very important word.
3) You sanction China – China will move of of USD and UST bonds – then what happen the USD falls into a bottomless pit and in a matter of weeks – the global economy collapses and WAR – NUCLEAR and EVERYONE BARBEQUE – welcome to insanity
It is good.
It is time now for China to flex her muscle …. dump the useless fiat dollar for mutual trade with other countries. China should arrange with mutual use of mutual currencies with each and every country and be the center of exchange for all currencies provided dollar is banned.
That should teach USA to cool down and dont be bossy when you are using the world's money to survive.
Remember when you fool with the Chinese …number 1 in 5 in the world or India … you better be careful.
Chinese around the world …have one voice … boycot your products you are dead economically . No need to go to war .. as China go for trade rather than war to progress.
Want to take on China… I say fat hopes you can win …econonocially or militarily.