The revelation in 2009 of nuclear facilities near Qom intensified international criticism of Iran’s opaque nuclear development. As Western countries prepare to pursue tougher sanctions at the U.N., China’s acquiescence as a permanent Security Council member is vital but will be difficult to obtain. Beijing is reluctant to pursue further sanctions, insisting that a solution to the nuclear impasse must be sought first and foremost through diplomacy. It emphasizes that as long as Iran honors its Nuclear Non-proliferation Treaty (NPT) commitments not to use nuclear technology for military purposes, it should not be obliged to forgo its rights, including enrichment, under that accord. China has vested interests in a good relationship with Iran. Iran is China’s third largest source of imported crude oil and possesses the abundant energy reserves that the rising power needs to sustain its rapid economic growth. China’s thirst for energy and its vast foreign reserves are an ideal complement to Iran, which has the world’s second-largest crude oil reserves but desperately needs investment to develop them. But China’s priorities in Iran go beyond economic interests. Strong bilateral relations help to counter U.S. dominance in the Middle East and increase Beijing’s strategic leverage. China sees Iran’s influence in the Middle East and Central Asia as useful to advancing its political, economic, and strategic agenda in that region. The two countries also share important historical and political affinities, shaped by suspicion towards the West and reinforced by an experience of sanctions and a perception of U.S. interference in their domestic politics. At the same time, the condemnation by some Iranian clerics of Chinese actions following the July 2009 Xinjiang riots has also led Beijing to view the relationship through the lens of protecting its domestic stability. This briefing examines the factors influencing China’s policy towards Iran, the framework within which Beijing will ultimately make its decisions and the likely implications for international efforts to address the nuclear issue, particularly within the U.N.
