China should take fight to US over Iran

The US slapped sanctions on China's Zhuhai Zhenrong Company last Thursday for engaging in energy deals with Iran. Analysts believe the US was sending a signal to Beijing, after US Treasury Secretary Tim Geithner failed to get China's backing on the Iran issue.

China should not bend to US pressure. It needs to come up with deliberate countermeasures, and show deterrence to an arrogant US. The unilateral sanctions were levied under its own amended Iran Sanctions Act, rather than any UN Security Council resolution.

Iran's oil resources and geopolitical value are crucial to China. Chinese companies have the freedom to engage in legal business with Iran's energy sector. It is worth taking on some troubles and even paying a certain price to safeguard this principle.

China should be confident. The US, facing a tough economy and the coming presidential election, cannot afford a trade war with China. It is not set on having a showdown with China just to impose sanctions on Iran. China has adopted anti-sanction measures against the US before, and this time China should demonstrate the same toughness.

This may lead to anger on Washington's part. But let's see how Washington ultimately reacts, given the massive trade volume between the two nations and China's status as the largest holder of US treasury bonds.

This should not be interpreted as an act of defiance from Beijing, especially at a time when the US is boosting its military presence in Australia and planning to deploy one-third of its battleships in the West Pacific in the next decade. It would be very strange if, in such circumstances, China stands in line with the US on its sanctions against Iran.

Many worry that given the currently sensitive situation, any careless move by China would result in US antagonism. Such worries should not dominate our thinking about Sino-US relations. China should take the necessary steps to protect its own interests. Repeated concessions will only make its ties with the US more risky.

Beijing is just sticking to its long-held attitude on the Iran issue. It is the US that is actively prodding China to make a change. Beijing is making it very clear that the US desire to see China acting in absolute unison with itself is impossible.

China can use its diplomatic experience in dealing with the North Korea issue and act as a mediator between Iran and the West. If the US does have misgivings about launching a war against Iran, there will be even greater space for China to mediate.

Hopefully in 2012, China will present more diplomatic wisdom and play its proper part in the Iran issue.