TEHRAN(Bazaar) – Professor Hossein Askari, who teaches international business at the George Washington University, says China would be a strategic partner for the GCC. But the United States has failed in its foreign policy and that is why China is in a strong position.
He adds: “Biden has not been tough with MBS—in the war in Yemen, in his murder of Khashoggi and above all in continuing to supply Saudi Arabia with arms and intelligence. Saudi Arabia is almost totally dependent on the U.S. for its military.”
Following is the text of the Bazaar interview with Professor Hossein Askari.
Q: During the visit of the President of China to Saudi Arabia, a comprehensive strategic cooperation agreement was signed between the two countries. What is the importance of this agreement for the two countries and what are the messages of signing it at this time?
A: China is sending a message to Iran and to the U.S. To Iran: We take Saudi Arabia over you as our preferred partner in the Persian Gulf. Saudi Arabia has a much higher oil output and a stronger economy. And it is not under sanctions. Moreover, with Saudi Arabia we have access to the rest of the GCC. Saudi Arabia and the GCC provide China a much better market and satisfy our energy needs at the same time. To the United States: China is here to stay. You are a weak partner and Mohammad bin Salman has played you and made you look naive. We will deal differently with him.
From the economic aspect, what is the importance of the countries of GCC for China?
A: Oil and LNG. Saudi Arabia, Kuwait and the UAE have oil and Qatar has LNG. With them, China does not need Iran. The GCC provides China a bigger market for China’s export too. And Saudi Arabia and the GCC have plenty of capital.
Q: Mohammed bin Salman has said at the meeting of the leaders of the Arab countries and China that this meeting will create historical progress in the relations between China and Saudi Arabia and will strengthen the relations in all fields. The countries of GCC look forward to all kinds of partnerships and accelerated development in their relations with China. According to these statements, it seems that in the new world order, China's position is special and Saudi Arabia's relationship with China is not just to send a message to America, it has a strategic aspect. what is your opinion?
A: Yes, China would be a strategic partner for the GCC. But the United States has failed in its foreign policy and that is why China is in a strong position. Biden has not been tough with MBS—in the war in Yemen, in his murder of Khashoggi and above all in continuing to supply Saudi Arabia with arms and intelligence. Saudi Arabia is almost totally dependent on the U.S. for its military. Biden should be tough and cut Saudi Arabia off from U.S. arms and maintenance of its planes and other military equipment. But he is afraid because of Israel’s support for Saudi Arabia, American arms exporters and the argument that Saudi Arabia stands against Iran.
Q: China and Saudi Arabia issued an anti-Iranian statement and emphasized the need to strengthen joint cooperation between Beijing and Riyadh to ensure the peacefulness of Iran's nuclear program and asked Iran to cooperate with the International Atomic Energy Agency and adhere to the Nuclear Non-Proliferation Treaty. They also emphasized the importance of Iran's respect for the principles of good neighborliness and non-interference of this country in the internal affairs of the region’s countries. Can this issue affect the relationship between China and Iran?
A: Yes and no. Iran will object behind the scenes, but sadly Iran does not have a strong hand to play. Saudi Arabia will pressure Iran from every side. China, Israel, Europe, the GCC and of course the United States. Iran is falling behind. Iran must reform its economy to be more competitive and more attractive to foreign investors. Iran has delayed and delayed after the Iran-Iraq War. But it is never too late to reform the economy. What reforms? It is not rocket science. Effective institutions—the rule of law, rational policies and laws (not ideology) for education, competition, labor laws, domestic and foreign investment and subsides; sound monetary and fiscal policies; elimination of corruption and enforcement of policies no matter who be the transgressor; and providing support for those who cannot take care of themselves. Yes, Iran is hampered by unfair sanctions, but if it succeeds economically it will attract investors and flourish. It takes courage to reform.
Q: In the meeting with the President of China, the Saudi Crown Prince mentioned Saudi Arabia's plans to achieve clean energy and said that the countries of the GCC will remain a reliable source of energy in the world. Does this mean that the energy of the region will no longer be a tool to control competitors from the United States?
A: No. MBS trumpets his pursuit of clean energy but all along and behind the scenes he is pushing policies to kill renewable and clean energy around the world. No, the Persian Gulf will continue to have power in the field of energy for at least another 15 or so years. For the future, natural gas, both piped and especially LNG will become more important than oil. Iran better get its act together in LNG and piping gas to Europe. Iran is sleeping as Qatar negotiates long-term contracts to supply gas for years to come.
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