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Heavy-Handed Politics

"€œGod willing, with the force of God behind it, we shall soon experience a world
without the United States and Zionism."€ -- Iran President Ahmadi-Nejad

Monday, March 20, 2006

China's Drive to Middle East

Economics, history propel Beijing to region
G2 Bulletin

"When World War III begins, it will inevitably be ignited by developments in two specific regions – the Middle East and Asia.

The Middle East is already the focal point of a titanic conflict between the West and Islamism. And the rise of China as a major world power causes Beijing to scramble for natural resources, including oil, found principally in the Middle East.

China has already become the second-largest oil consumer in the world, after the U.S. It has developed a sophisticated military capability and it is rushing in to fill voids left by the U.S. in the wake of the West’s conflict with Islamism.

China has a long history of involvement in the Middle East. Throughout the Cold War, China stepped in to court Arab and Muslim nations when tensions with the West were running high.

But whereas once China’s involvement in the region was based more on politics and a natural antithesis with the West, today its interest in the Middle East is based on pure economics. It needs oil for continued growth. China became a net oil importer 13 years ago. And its search for more reserves has never ceased. The Middle East now provides China with half its oil imports.

Recently, China has hosted leaders from Kuwait and Saudi Arabia – securing energy exploration agreements and contracts to develop its own refining capacities.

For more than a decade, Saudi Arabia’s exports to the U.S. have been declining, while its exports to China have been increasing. China’s relations with Pakistan, a close ally of Saudi Arabia, remain strong. And China has moved ever closer to Iran, even supporting its quest for nuclear power and nuclear arms.

China’s history with Iran dates back much further than the Cold War. There were major trade routes between China and Iran for centuries. But more recently, China signed a $100 billion deal with Iran to import 10 million tons of liquefied natural gas over a 25-year period in exchange for a Chinese stake of 50 percent in the development of the Yahavaran oil field in Iran. China is also exploring the feasibility of a direct pipeline to Iran via Kazakhstan.

There is no doubt that Iran’s nuclear program is a potential source of an imminent showdown with the West. Therefore, China’s support for Iran becomes critical – the kind of support that can turn a regional conflict into a global one."

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