Coronavirus: Iran looks to China for help

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Coronavirus: Iran looks to China for help


WRITTEN BY TRIDIVESH SINGH MAINI

30 March 2020

Of all the country’s to have been hit the hardest by COVID-19 , one of the worst affected is the Islamic Republic of Iran. Iran has suffered heavy casualties to this invisible foe following after China and Italy as the most impacted. As of 5 April 2020, deaths in Iran were estimated at 3,600 (with world wide fatalities estimated at over 58,000)

Before the onset of COVID-19, the Iranian economy was already facing numerous challenges, due to stringent economic sanctions imposed by President Donald Trump after the U.S. withdrew from the Iran-P5+1 nuclear agreement – also known as the Joint Comprehensive Program for Action (JCPOA). While Iran had been urging U.S. allies like the UK, Germany and France to get Washington to soften it’s approach vis-à-vis Tehran, this was to no avail.

Seeing that Washington was unwilling to take a look at Iran’s demands, in 2019 Iran began to increase it’s uranium production (in November 2019 daily enriched uranium production was estimated at 5g per day), more than what was permitted under the JCPOA.

Two key events then followed; the September 2019 attack on oil facilities in Saudi Arabia by Houthis militants from Yemen, allegedly with Iranian backing according to intelligence sources from the US, Germany and France who all held Iran to be responsible. This was followed in January of this year with the killing of Iranian General Qassem Soleimaini by a US drone strike in Baghdad which effectively removed whatever possible chances there were of a thaw between the US and Iran, in fact many feared that conflict could escalate to the level of a full blown war. Since these two events, the only country which has been backing Iran is Beijing.

China’s support for removal of US sanctions against Iran

If one were to look at the current situation. What is significant in the present context, is that only China (apart from Pakistan) has supported for Iran’s request for the removal of US sanctions seeing the current crisis. In a tweet on Monday March 16, 2020, Chinese Foreign Minister, Wang Yi had called for the removal of ‘unilateral sanctions’ against Iran.

The Iranian Foreign Minister, Javad Zarif had written to the Secretary General of the UN, Antonio Guterres, on March 12, 2020, for removal of sanctions keeping in mind the fact, that sanctions were hampering Iran’s response to COVID 19 (sanctions prevented the sale of medicines, medical equipment and humanitarian goods to the country).

Iran had sought international support, including from the IMF for dealing with the virus. The Head of Iran’s central Bank, Abdolnaser Hemmati had written to the International Monetary Fund seeking assistance to the tune of 5 Billion USD. Iranian Foreign Minister, Javad Zarif had appealed saying that in such a situation humanitarian thoughts should prevail. Said the Iranian Foreign Minister in a tweet:

"Our Central Bank requested access to this facility immediately. IMF/IMF Board should adhere to Fund's mandate, stand on right side of history & act responsibly,"

This is for the first time since 1962, that Iran has sought help from the IMF. IMF has responsed

US imposes further sanctions

It would be pertinent to point out, that while China has batted for removal of sanctions against Iran, US has also imposed further sanctions against Iran on Tuesday, March 17, 2020. Secretary of State, Mike Pompeo stated that sanctions were imposed against 9 entities (based in HongKong, South Africa, China) and three Iranian nationals for carrying out petrochemical transactions with Iran. Pompeo also sought the release of Americans detained in Iran – as a humanitarian gesture.

China’s overall approach vis-à-vis COVID 19

China has been trying to portray itself in a different way from the US, where Trump has tried to blame other countries including not just China, but even countries in the EU. It sent a team of doctors to Italy (this gesture was acknowledged by Italy), and also has provided assistance to a number of countries. Chairman of Ali Baba, Jack Ma has also provided masks, testing kits and assistance to neighbouring countries in Asia, EU and Africa and even the US (he has donated 500000 testing kits and 1 Million masks to US).  Beijing has obviously tried to project it’s Soft Power something which has never been it’s strength. Jack Ma would have also tried to dispel the notion about China being mercantilist and lacking compassion

Standing up for Iran also has a clear strategic imperative of course. Ties between Tehran and Beijing had strengthened after the signing of the deal in 2015. Chinese President Xi Jinping had visiting Iran in 2016 (in doing so he was the first Chinese President to visit Iran in 14 years) and the thrust of the visit was on enhancing bilateral economic relations (a strategic partnership for 25 years was signed with an aim of pushing bilateral trade to 600 Billion USD over a decade). Javad Zarif had also visited China in 2019, and both sides sought to give a fillip to economic ties. China made a commitment of investment to the tune of 400 Billion USD in Iran (280 Billion USD in energy, and 120 in infrastructure). Apart from key energy projects (Phase 11 of the supergiant South Pars gas field, West Karoun oil fields and the Jask oil export terminal) two important projects which fit in well with China’s BRI project (electrification of the Tehran-Masshad line and a high speed line Tehran-Qom-Isfahan high-speed train line)

Given the likely slowdown as a result of COVID 19 there is a belief that BRI projects and Chinese investments could slowdown. It remains to be seen whether Beijing helps Tehran in dealing with the long run economic challenges arising out of the COVID19

Conclusion

This was a good opportunity for Iran and the US to reduce tensions. Magnanimity from the US, will not weaken it in anyway. While this is no time for geo-political rivalries, but some relaxations of sanctions would have sent a very positive message .US allies like UK, EU member states (France and Germany), Japan and India, can play a role, in convincing Washington DC to adopt a more humane approach.

In the last two years, the Chinese President Xi Jinping has been speaking in favour of globalisation and also trying to show, that Beijing is flexible with regard to criticism of the BRI, recent assistance provided to various countries to deal with COVID 19 is just one instance. Washington on the other hand is becoming not just isolationist, under Trump, but at times appears to be insensitive.

DISCLAIMER: All views expressed are those of the writer and do not necessarily represent that of the 9DASHLINE.com platform.

Author biography

Tridivesh Singh Maini is a New Delhi-based policy analyst associated with Jindal School of International Affairs, Sonipat. His areas of interest include the India-China-Pakistan triangle, Belt and Road Initiative (BRI), the role of India’s state governments in foreign policy (especially the economic dimension), and federalism in India. He was a South Asian Voices Visiting Fellow at the Stimson Center, Washington DC and a Public Policy Scholar with The Hindu Centre for Politics and Public Policy, Chennai. He can he reached by email. Image credit: United Nations/Flickr.