Senators accuse China of violating sanctions against Iran

Posted By Josh Rogin Tuesday, January 18, 2011 - 4:24 PM Share

Just before Chinese President Hu Jintao's arrival to Washington, two leading senators accused China of violating sanctions against Iran and sent a warning to President Barack Obama that Congress will go after Chinese companies if the abuses don't stop.

"We appreciate China's decision to support U.N. Security Council Resolution 1929, as well as China's backing of prior U.N. sanctions against Iran. However, we believe that China's record on sanctions enforcement and nonproliferation is inadequate and disappointing," Sens. Joseph Lieberman (I-CT) and Mark Kirk (R-IL) wrote to President Obama on Jan. 14 in a previously unreported letter.

The senators cited numerous reports that China is supplying crucial materials to aid Iran's nuclear and missile programs and alleged that Beijing continues to give monetary and material support to Iran's energy sectors, including the delivery of refined petroleum products, which could provoke penalties under U.S. laws passed by Congress, including the Comprehensive Iran Sanctions Accountability and Divestment Act that Obama signed into law in July, 2010.

The senators specifically named the state-owned China National Petroleum Corporation (CNPC) and the China Petroleum and Chemical Corporation (SINOPEC) as firms that could come under U.S. penalties.

"We urge you to warn President Hu that the U.S. will be forced to sanction these companies if they do not quickly suspend their ties with Iran," the senators wrote.

Last October, the Government Accountability Office (GAO) released a new report that identified 16 companies as having sold petroleum products to Iran between Jan. 1, 2009, and June 30, 2010. Of those 16, the GAO reported that five have shown no signs of curtailing business with Iran. Three of those companies are based in China, one in Singapore, and one in the UAE.

Japan and South Korea are among the countries that have scaled back their dealings in Iran in response to U.S. pressure. But analysts fear that Chinese corporations could move to backfill the space left in Iran by countries that are now cooperating with international and U.S. sanctions measures.

Also today, one of the key authors of the bill, former House Foreign Affairs Committee chairman Howard Berman (D-CA), also called on Obama to press China to enforce energy sanctions on Iran.

"A key area of concern for the United States is the threat posed by a nuclear-armed Iran, a threat that would also jeopardize China's long-term security," Berman said in a statement. "As President Obama sits down with President Hu this week, securing greater cooperation from the Chinese government in stopping Iran's nuclear weapons program must be at the top of the agenda."

China is currently Iran's largest trade partner, its largest oil purchaser and its largest foreign investor. China-Iran trade is currently around $30 billion per year and Iranian officials have predicted it could reach $50 billion over the next five years.

EXPLORE:EAST ASIA, CHINA, DIPLOMACY, IRAN, OBAMA ADMINISTRATION, STATE DEPARTMENT, U.S. CONGRESS, U.S. FOREIGN POLICY

(3)

HIDE COMMENTS LOGIN OR REGISTER REPORT ABUSE

LOGICAL123

11:23 PM ET

January 18, 2011

US should stop trading with China

According to the sanctions resolution, since China is trading with Iran, the US should stop all trade with China. These sanctions are simply laughable and Lieberman and Berman are simply a senator and a representative from Israel. Their least interest is what is beneficial for the US. Their only concern is Israel.

China's trade with Iran is extensive and it is investing billions in Iran's energy sector. Also, Iran does not need any imports of gasoline since it is self-sufficient in gasoline production. As far as South Korea and Japan are concerned, both continue to trade with Iran after pretending to curtail their activities to satisfy simple-minded Americans. Iranian export of oil products increased by 92% to Italy compared to last year. Also, Iran's trade with Germany is increasing. So, all these sanctions are just smoke and mirrors. Iran is continuing to progress and is developing its industrial base rapidly, while the US is nitpicking on silly sanctions and wasting time fighting phantom enemies in Iraq and Afghanistan.

MARTY MARTEL

12:20 PM ET

January 19, 2011

Fruitless accusations from Senators

US was forced to water down UNSC resolution against Iran under Chinese veto threat as these Senators have to know. So China can easily ignore such accusations from Senators.

This is NOT the first warning nor is it going to be the last by US Senators to China regarding China’s trade practices before US Congress is supposed to be taking some sort of action against China. China has seen enough of them by now not be bothered too much about such empty warnings.

It is highly doubtful that US Congress is united in imposing any sort of trade sanctions on China regardless of US unemployment rates or trade deficits.

China has US by its tail. US businesses are hooked to huge profits that cheap Chinese goods generate for them as a walk through any Walmart, Sears, Home Depot or Macy’s filled with Chinese goods indicate and US government is hooked to huge investments that China makes in US treasuries from sales of those Chinese products to US businesses.

US business lobby in Washington against tariffs on Chinese goods that includes most of the big business names, is way too powerful to allow US Congress to pass any legislation against Chinese goods. So it is mostly talks on part of US officials and some US legislators.

GHUL

1:35 PM ET

February 16, 2011

China political model

To come back from near destitution and bloody tyranny in one generation is a great feat, and China should be saluted for it. But China’s success story is also the most serious challenge that liberal democracy has faced since fascism in the 1930s.

This is not because China poses a great military threat – sazky war with the United States, or even Japan, is only a fantasy in the minds of a few ultra-nationalist cranks and paranoiacs. It is in the realm of ideas that China’s political-economic model, regardless of its environmental consequences, is scoring victories and looking like an attractive alternative to liberal democratic capitalism.