Tipping the geopolitical balance - The China-Iran deal

The future of geopolitics

This summer, Iran might finally have provided China a viable solution to its “Malacca Dilemma.” In the process, Beijing finds new geopolitical leverage with Washington, writes Daniel Markey.

For at least the past two decades, Chinese leaders and strategists have viewed the Strait of Malacca and the other narrow maritime passageways linking the Indian Ocean to the South China Sea as critical strategic liabilities. As of 2017, 80% of China’s maritime oil imports flowed through Malacca, a congested waterway that reaches only 1.7 miles across at its narrowest point. Passage through the strait can be slowed by shipwrecks and disrupted by terrorism or piracy. In 2003, however, Chinese president Hu Jintao famously pointed out another threat keenly felt by Beijing: that “certain powers have all along encroached on and tried to control navigation through the strait.” By “certain powers,” Hu meant the United States, which to this day holds important geopolitical leverage over China because the U.S. Pacific Fleet can threaten to squeeze China’s principal lifeline for energy and trade.

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shahid raja 20 August 2020

Bilateral relations between Iran and China are by and large are business-oriented, and non-ideological based on a pragmatic assessment of their respective national interests. Iran under heavy sanctions of the USA and its allies has no option but to rely on China, rapidly rising as a global power that can challenge US economic dominance. On the other hand, China is fully conscious of the geostrategic importance of Iran, a major regional power located at the crossroads of the Middle East and Central Asia. This is an area that is important to its Belt and Road Initiative (BRI). And, besides a great deal of untapped potential for foreign investment, Iran has oil and gas resources which could be easily transported over land to China. The proposed US$ 400 billion 25 years economic and security deal between the two countries is crystallization of these hard realities