oil and ideology keep china from joining push against iran

Washington Post | In its effort to muster support for sterner action against Iran, the Obama administration will have to overcome China's reluctance to punish a country that is one of its top oil suppliers and a major beneficiary of its energy-related investments.

The administration's frustration with Beijing is growing. U.S. officials have noted that China has appeared even more reluctant than Russia to take action against Iran after disclosures about its nuclear program. U.S. officials said they are particularly concerned that China has blocked their efforts to target freight-forwarding companies based in Hong Kong that reship goods, including prohibited weaponry, to Iran.

The Chinese "have not displayed a sense of urgency" on Iran, said a senior administration official. Instead, the official said, China has attempted to "have it both ways," preserving its relationship with Iran while also working with the United States and other countries involved in the effort to prevent Iran from developing a nuclear weapon.

Why is China protecting Iran? Two reasons, analysts say: oil and ideology.

Iran is China's second-biggest supplier of oil, and imports are rising. In a country where more people are expected to buy cars this year than in the United States, China's appetite for oil is unquenchable.

Furthermore, China's rapid economic growth is the ruling Communist Party's single most important claim to legitimacy. Tougher economic sanctions against Iran would probably cause the price of oil to spike in China, threatening its economic juggernaut.

China's investments in Iran also lessen the likelihood that Beijing will support enhanced sanctions. China's state-run oil behemoths have committed so much money to Iran -- an estimated $120 billion over the past five years -- that analysts estimate that its engineering firms will not be able to handle all the work.