Xiangjiang Qiao, a Chinese national and the owner of a graphite and carbon product manufacturer, has been charged in New York with exporting $17m worth of technical materials to Iran, including those used in intercontinental ballistic missiles. This marks the first time in four years that the Justice Department has charged an alleged Chinese supplier of Iran’s nuclear weapons and missile programs. The US has warned against closer technical collaboration between Russia and Iran, particularly over the sale of more advanced unmanned aerial vehicles. The maximum prison sentence for violating the International Emergency Economic Powers Act, which is part of the US sanctions regulations, is 20 years.
Mr Qiao is said to have conspired to use Sanctions Designated Nationals (SDNs), Sinotech Dalian Carbon and Graphite Manufacturing Corporation and its later veneers, circumventing restrictive policy by creating fake bank accounts for front companies, thereby utilizing international banks for illegal transactions. Sinotech was added to the SDN list by the US Department of Treasury in 2014. Qiao is also accused of money laundering and a conspiracy to commit bank fraud.
China eased some restrictions on Iranian oil this year, with neither China nor Iran signed up to the International Energy Agency’s inventory control system, which holds strategic oil reserves globally. China has previously attempted to purchase Iranian oil by taking advantage of the declining value of the Iranian currency due to US sanctions. The US is looking to further sanction China for supporting Iran’s nuclear weapons program.
This comes just as the Presidency changes in the United States, with Joe Biden expected to take office in January. The incoming administration has indicated that it will engage in multilateral diplomacy, suggesting that it could ease tensions with Iran and re-join the nuclear agreement abandoned by President Trump. However, President-elect Biden is unlikely to lift any sanctions against Iran immediately, and his administration is poised to maintain a hard-liner approach when it comes to the country’s military and ballistic missile program.
Critics have argued that China and other countries that are seen as supporting Iran are pushing back against the United States’ global economic influence and the delivery of benefits to allies. The Trump administration implemented sanctions meant to cripple Iranian oil infrastructure in a bid to force the country back to the negotiating table over its nuclear program. The administration’s approach has led to an increasingly fractured relationship between the two nations.
As a result of these sanctions, Iran is turning to countries such as China to fund its activities, and analysts believe that Beijing will continue to pursue its interest in Tehran despite Washington’s objections. Some US officials believe that China wants to create a wedge between Iran and the US and establish greater maritime and energy deals with Tehran.
However, Mr Qiao’s indictment is a stark reminder that there will be continued US opposition to China’s involvement with Iran.
A Chinese worker accused of blasphemy in Pakistan has been released on bail and may be allowed to return to China. The man, known only as Tian, was working on the Dasu Dam hydropower project when he criticised two drivers for taking too much time to pray during work hours, an act that led to him being accused of insulting Islam. Protests then led to a road being blocked and the suspect’s arrest. Critics have condemned Pakistan’s blasphemy laws as draconian and they have been blamed for several mob attacks. However, the incident highlights the cultural differences between China and Pakistan, and it remains to be seen whether China will continue to employ workers in countries where blasphemy and other religious offenses are taken seriously.
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