Shanghai Cooperation Organisation (SCO) and Global South strategic cooperation

TK3600

Major
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Can I have a recap? China proposed the RMB platform for oil and gas trade for GCC and GCC was interested. What actually got signed?
 

LawLeadsToPeace

Senior Member
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First of all, there is the matter of quantities. How many Sunni Arab countries are there in Asia and Africa vs shiities? While someone in Indonesia might not have the same friendly view of Palestine as Saudi Arabia, it generally is still a net positive when you are seen as standing with sunni Muslims. Just pragmatism when it comes to geopolitical support, market size and such.
Agreed. In this regard, no one can debate over that.
Secondly, just what has supporting Iran gotten china? The liberal wing still has no respect for Chinese culture or tech prowess. They would jump toward the west the moment jcpoa concludes. The conservative wing might have turned to china in recent years, but have they done anything to stand with china? They are far more pro Russia than china. Has Iran been selling hydrocarbon to china in rmb? Have they initiated on large pipeline projects to supply china? They still prefer su35 over j10. Generally, they just don't respect china. China is a reluctant partner for them. I don't see why china needs to support such an ungrateful "partner". There have been many years of western alienation toward issue and we have not seen any progress from Iran toward china.
Interestingly enough, the Chinese got a lot. Aside from oil, which is something both the Arab world and Iran both produce, China gained influence on Iran, and that put it in a favorable position in Sino-Arab negotiations. Think about it: Iran has been expanding its geopolitical footprint in the Middle East. It is quite literally a loose cannon for the Saudis, who are basically the leaders of the Arab world. This is a huge headache for Saudi Arabia since they have to compete hard with Iran. Simultaneously, the US's recent antics, such as seizing Russian assets with absolute impunity, pushed them into an uncomfortable and dangerous position since they can be robbed at any moment. With both variables at play, the economic and political environments are extremely unpredictable for the Saudis and one single misstep can mess things up for them. However, China essentially can solve both problems by getting Iran to the negotiation table and by providing the economic alternative to the Saudis without any strings attached that would turn them into a slave.
Thirdly, what could China ever gain from supporting Iran? Right now, a current view in Western world is that the only friends China has is with countries like Russia, Iran and North Korea that are cut off from the current world order. That's not where China wants to be. Russia is a strong partner with large area that is the only realistic major power that would be on their side in a major fight. NK is a friend that's been China's loyal partner for 70 years. Iran is neither a strong not a loyal partner. China does not need to be saddled with Iran. By being friend with all of Sunnis world, China will be on better terms with a good chunk of Asia and Africa. Its products will be all over the place in these countries. Sunni Muslim countries actually like Chinese tech and products and are closing to use them to build their infrastructure and future. Having the support of ASEAN countries + Sunni Muslim world means China + old allies in Africa and Latin America means China can become the leader of the Global South. If Western countries don't agree with that, then they are just being racist.
I'm not saying China should reject the Sunni world. I said that China should and most likely will help balance the relationship between the two factions. The last thing you need is the US exploiting any type of conflict between the Sunnis and Shiites. That is why supporting both parties is crucial. It puts China in a favorable position among the mass majority of the Muslim world. There is no need to prioritize one side over the other. At the same time, that would require the Chinese to convince Iran to dial down their anti-Arab attacks and pursue a reasonable compromise. Will this force Iran to de-escalate? Yes. However is it an anti-Iran manuever? No.
None of this is to say that China needs to be overtly hostile to Iran, but that China should pick Sunnis over them if they had to make the choice. And frankly, it should be a really easy choice. As I said before, China is investing pick into CPEC and infrastructure projects like Gwadar and Karachi in Pakistan. Iran's own Chabahar port is a threat to Gwadar due to their proximity. Iran has not done anything of value for the BRI project. If China can destroy Chabahar's commercial value, it should. It does not need another competition to Gwadar around the Persian Gulf
Like what you and others said, Iran has little economic value in comparison that of the Arab world, so comparing Iran to China, whose large market makes the CPEC project valuable and is necessary for the Arab world to depend upon, is like comparing aluminum and gold. So, I wouldn't be too concerned about its port. As for hostilities, overt hostility is not necessary to cause friction and division. All you need are seeds of discontent to do so. During the 70's, Vietnam's implicit one sided support for the USSR and inability to amend disagreements with China caused Sino-Vietnamese relations to decay. This would ultimately lead to the 1979 Sino-Vietnamese conflict and the 1980's border clashes; both of which screwed Vietnam up. There are no such thing as binary choices in politics. In my Sino-Vietnam example, Le Duan, the leader of the CPV, made exclusive choices and screwed his country over. Whenever possible, one should support both sides to help them find a temporary middle ground, especially if one is in a position in which they need the numerical support for a much larger competition and conflict with a dangerous foe like the US.


PS: Ill try to get to the other user's post whenever possible.
 

taxiya

Brigadier
Registered Member
Again, China is claiming itself as protector against Saudi's enemies. Who has been attacking Saudi infrastructure? it was not a simple statement to make. When you take the role of protecting GCC countries, you are stepping up your game and picking Sunnis ahead of other players in the region.
I fail to see how you could get this conclusion that China is acting as a protector of GCC. To me, it is very stretchy to draw this conclusion from the declarations we have seen.

I am also curious as why you are so eager to see (or portrait) China picking the Sunni side in its rivalry with Shia which has been there for more than a thousand years.
 

taxiya

Brigadier
Registered Member
Can I have a recap? China proposed the RMB platform for oil and gas trade for GCC and GCC was interested. What actually got signed?
It is a good first step, but nothing concrete. Only when GCC list their oil in the exchange will things become materialized.
 

tphuang

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I fail to see how you could get this conclusion that China is acting as a protector of GCC. To me, it is very stretchy to draw this conclusion from the declarations we have seen.

I am also curious as why you are so eager to see (or portrait) China picking the Sunni side in its rivalry with Shia which has been there for more than a thousand years.
I already explained my points. Iranians are not all that helpful to China. China gets a lot more from getting cozy with Sunnis.

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A joint statement released Friday after the meeting of China and the Gulf Cooperation Council (GCC) nations referred to Iran as a supporter of regional terrorist groups and a proliferator of ballistic missiles and drones. It also noted the importance of addressing "the Iranian nuclear file and destabilizing regional activities."

The inclusion of destabilizing activities has shocked Iranian officials, who have long held that the nuclear negotiations should be solely about its nuclear program.
Furthermore, the joint statement raises the issue of three islands located in the Strait of Hormuz -- Greater Tunb, Lesser Tunb and Abu Musa -- which are administered by Iran but claimed by the United Arab Emirates. The statement said: "The leaders affirmed their support for all peaceful efforts, including the initiative and endeavors of the United Arab Emirates, to reach a peaceful solution."

The statement caught Iranian officials by surprise. Previously, when Iran requested China to take its side in nuclear talks and work with the E3 countries -- the U.K., Germany and France -- to save the deal, Beijing's response was that it would not interfere and that its views on the region were primarily economic.
Basically, they interpreted as I did. Which is calling out Iran as a supporter of regional terrorist groups and proliferator of bm and drones is very offensive to Iranians. Still missed out here on the entire part about China supporting Saudis against any state actors that attack them. That was clearly aimed at Iran and America.

And more importantly, Iran has no choice but to continue pretending that China is a friend. If Iran treats China the same regardless of whether China picks side, then why doesn't China pick Sunnis sides. I don't frankly care if Iranians will be bitter about it 50 years from now, since most of the world treats them as a pariah state.
"China is not the same with a country like Germany for us. We can summon Germany's ambassador, but not China's," said an Iranian official on the condition of anonymity. "We still consider them as friends and we need them to continue buying oil from us and invest in our oil infrastructure."
Despite the discount, "Our sales are good," the Iranian official said. "China, just like Russia, has invested big money in our oil and gas industry. Russians have pledged to invest $40 billion and the Chinese are going to make a similar investment pledge within the next two months," the official said
 

tphuang

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Again, I stress this very clearly. This isn't just about pricing oil from Saudis in RMB. I'm sure some oil trading have already been in RMB. It's about building China's own trading platform where buyers and sellers can trade oil and gas. Just as it built futures exchanges and commodity exchange for different natural resources and then opened up to international investors and such.

This one does a good job explaining the progress of various Chinese future contracts here.
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The international crude oil futures on ShFE were able to hit an impressive turnover of 17.1 trillion yuan (US$2.48 trillion) in the 12 months since their March 2018 launch, proving the market is ready for prime time.
now, they want to trade things on Shanghai Petroleum and natural gas platform. All of this is under China's control. That's what China wants to do. It wants to have platforms where it controls things. It cannot be sanctioned or pushed off.

If you look at this, Qataris have already used it
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I'm still confused about the relationship between SFE and Shanghai Petroleum and natural gas exchange. Looks like SFE has it's own Shanghai international energy exchange which also trades quite a bit
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Abominable

Major
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I have a problem with this statement. Most of my view on Iran vs Arab countries have nothing to do with financial gains and mostly to do with political/geopolitical concerns. I've already discussed the importance of having its own oil & gas platform to its future independence from Western system. Here are some other reasons.

First of all, there is the matter of quantities. How many Sunni Arab countries are there in Asia and Africa vs shiities? While someone in Indonesia might not have the same friendly view of Palestine as Saudi Arabia, it generally is still a net positive when you are seen as standing with sunni Muslims. Just pragmatism when it comes to geopolitical support, market size and such.

Secondly, just what has supporting Iran gotten china? The liberal wing still has no respect for Chinese culture or tech prowess. They would jump toward the west the moment jcpoa concludes. The conservative wing might have turned to china in recent years, but have they done anything to stand with china? They are far more pro Russia than china. Has Iran been selling hydrocarbon to china in rmb? Have they initiated on large pipeline projects to supply china? They still prefer su35 over j10. Generally, they just don't respect china. China is a reluctant partner for them. I don't see why china needs to support such an ungrateful "partner". There have been many years of western alienation toward issue and we have not seen any progress from Iran toward china.

Thirdly, what could China ever gain from supporting Iran? Right now, a current view in Western world is that the only friends China has is with countries like Russia, Iran and North Korea that are cut off from the current world order. That's not where China wants to be. Russia is a strong partner with large area that is the only realistic major power that would be on their side in a major fight. NK is a friend that's been China's loyal partner for 70 years. Iran is neither a strong not a loyal partner. China does not need to be saddled with Iran. By being friend with all of Sunnis world, China will be on better terms with a good chunk of Asia and Africa. Its products will be all over the place in these countries. Sunni Muslim countries actually like Chinese tech and products and are closing to use them to build their infrastructure and future. Having the support of ASEAN countries + Sunni Muslim world means China + old allies in Africa and Latin America means China can become the leader of the Global South. If Western countries don't agree with that, then they are just being racist.

None of this is to say that China needs to be overtly hostile to Iran, but that China should pick Sunnis over them if they had to make the choice. And frankly, it should be a really easy choice. As I said before, China is investing pick into CPEC and infrastructure projects like Gwadar and Karachi in Pakistan. Iran's own Chabahar port is a threat to Gwadar due to their proximity. Iran has not done anything of value for the BRI project. If China can destroy Chabahar's commercial value, it should. It does not need another competition to Gwadar around the Persian Gulf
There's no reason why China should have to pick between Iran and the Gulf. It's a dumb conflict that only benefits Israel and the west.

My understanding of Iranians is they are unhappy with the Gulf countries because of their dependence on the western their westernisation and their (indirect) support of Israel. Replace western support for the Gulf states with Chinese support and that goes away. The theological dimension is overblown and exploited by the west. No Arab country had a problem with Iran before the anti western Islamic revolution. Furthermore Iran had Sunni countries like Libya as allies.

Saudis need to acknowledge that whether they like it or not, Iran will eventually become a nuclear power. They need nuclear weapons of their own, which will be impossible given how dependent they've made themselves on America.

Overall, I'm a little disappointed by the recent summit. Economic cooperation is fine, but I was expecting a much bigger military deal. Drones are small fish. Either Saudis aren't quite ready to ditch western platforms or China isn't ready to export the latest and most advanced weaponry.
 

tphuang

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There's no reason why China should have to pick between Iran and the Gulf. It's a dumb conflict that only benefits Israel and the west.
You won't get closer relationship with Sunni countries unless you show you are willing to pick them over Iran. Remember, your top ally Pakistan also has a problem with Iran.
My understanding of Iranians is they are unhappy with the Gulf countries because of their dependence on the western their westernisation and their (indirect) support of Israel. Replace western support for the Gulf states with Chinese support and that goes away. The theological dimension is overblown and exploited by the west. No Arab country had a problem with Iran before the anti western Islamic revolution. Furthermore Iran had Sunni countries like Libya as allies.
It doesn't matter what the underlying issue is. What matters is that Iran is engaging in proxy wars to further shiite influence in the middle east. These proxy wars have been very damaging for GCC countries. They have shown themselves desperate for attention from the west while not appreciating what China had done for them.
Saudis need to acknowledge that whether they like it or not, Iran will eventually become a nuclear power. They need nuclear weapons of their own, which will be impossible given how dependent they've made themselves on America.

Overall, I'm a little disappointed by the recent summit. Economic cooperation is fine, but I was expecting a much bigger military deal. Drones are small fish. Either Saudis aren't quite ready to ditch western platforms or China isn't ready to export the latest and most advanced weaponry.
how many military deals between China and Saudi Arabia have been made public? Did the DF-21 deal get reported? We will find out in a few years what they've actually concluded.
 
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