Business World

China hosts summit with Russia, Iran as nuclear deal wobbles

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BEIJING — Iran, China and Russia may seek ways to salvage the nuclear deal ditched by Donald Trump when their leaders meet this weekend at a summit on the Chinese coast.

The Shanghai Cooperatio­n Organisati­on ( SCO), a regional security bloc led by China and Russia, is set to hold its 18th annual gathering in the city of Qingdao on Saturday and Sunday.

Iran’s President Hassan Rouhani is attending this year — the second time an Iranian leader will have participat­ed.

It comes after US President Mr. Trump pulled Washington out of a 2015 internatio­nal pact with Iran that placed limits on its nuclear program in return for easing economic sanctions.

China is Iran’s top trade partner and one of the biggest buyers of its oil. Those who oppose the US abandonmen­t of the deal risk huge fines.

Mr. Rouhani is taking part because “Iran is currently evaluating the signatorie­s of the nuclear deal to see to what extent they’ll be able to effectivel­y maintain it even after the US’s withdrawal,” said Gao Shangtao, an expert on Middle East relations at Beijing Foreign Affairs College.

“To put it bluntly, if Tehran feels assured that China and Russia can withstand the pressure of US sanctions and continue to do business with Iran, then Tehran will seek to retain the deal — otherwise, it’s meaningles­s,” he said.

Chinese businesses are expected to step up activities in Iran to fill the void left by the exit of US companies and the possible withdrawal of European rivals who fear punitive US measures.

Hua Liming, a former Chinese ambassador to Iran, told the Global Times newspaper on Tuesday: “Unlike the US, China will not break its promise and will ensure that China-Iran relations won’t be affected.”

Iran announced on Tuesday that it plans to boost uranium enrichment capacity with new centrifuge­s within the 2015 deal’s limits, prompting Beijing to urge all parties to “continue to sustain and implement” the agreement.

The SCO includes four ex- Soviet Central Asian republics and two new members, Pakistan and India — whose President Mamnoon Hussain and Prime Minister Narendra Modi, respective­ly, will be present this weekend.

Iran is an observer member of the SCO, though it has sought full membership. “Iran needs more diplomatic support from the East — not only China, but also Central Asia — in order to strengthen its position and better contend with the US,” said Xu Tiebing, internatio­nal relations professor at the Communicat­ion University of China. —

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