Skip to main content

China playing peacemaker in the Gulf (updated)

How is that going to work?

In the past, the Americans and their might would bring different groups together and try to hammer a peace accord between the parties.  Sometimes it worked other times it didn't but in most cases, the US had its "imperial might" to back up its negotiations; either economical or physical (Navy).

The Chinese are trying to broker a deal in the Middle East between two parties (Saudi Arabia & Iran) who have hated each other for if not millennium for at least centuries.  The Chinese have no physical might, they have limited economic might, aside from a great need for oil products.

It's like a consumer trying to resolve a fight between two suppliers but has only its pocketbook available!

I admire the Chinese's willingness to walk into that minefield and wish them luck, both the Brits and the Americans never fully committed to such discussions.  

Still, it is a reflection of America's interest in the region, that no one in Washington is upset that the Chineses are taking over the role of global negotiator, in fact, Washington wishes Beijing well in its efforts.  

The downside for the Chinese is that if all this fails (and it's likely) they will look ineffective, if it succeeds China will have some oil deliveries for some time.  Failure is the likely outcome.  Iran and Saudi Arabia are well aware that the American 5th fleet is not really around much (it's in Italy right now), that there are less than 5,000 US soldiers in the Middle East (99% are military advisors -- usually contractors), that can be out of the region in days if needed.  About 1/3 are there to protect US embassies and other US government offices in the region.  Nature abhors a vacuum, and both Saudi Arabia and Iran see themselves as the natural leaders in the region (both with large armed forces) 

The disengagement of America is something the world has not seen since WWII.

UPDATE:  The Saudis have sent a press release stating that they are doing this despite the "warnings" from the White House and that America should not interfere!  The White House has been remarkably quiet.  The "buzz" is that the White House is actually happy that they've reopened their respective embassies, although it will give rise to more spying it will also open channels of conversations (beyond what the Swiss have been providing for the past 20 years).  Also, rumors are that the 5th fleet is staying in Europe rather than returning to the straight of Hormuz, because of events in Ukraine... (this could all be disinformation from my contacts)

 

Comments

Popular posts from this blog

Ok so I lied...a little (revised)

When we began looking at farming in 2013/14 as something we both wanted to do as a "second career" we invested time and money to understand what sector of farming was profitable.  A few things emerged, First, high-quality, source-proven, organic farm products consistently have much higher profit margins.  Secondly, transformation accounted for nearly 80% of total profits, and production and distribution accounted for 20% of profits: Farmers and retailers have low profit margins and the middle bits make all the money. A profitable farm operation needs to be involved in the transformation of its produce.  The low-hanging fruits: cheese and butter.  Milk, generates a profit margin of 5% to 8%, depending on milk quality.  Transformed into cheese and butter, and the profit margin rises to 40% (Taking into account all costs).  Second:  20% of a steer carcass is ground beef quality.  The price is low, because (a) a high percentage of the carcass, and (b)...

Spray painting Taylor Swift G650 aircraft (updated)

 First, a bit of paint will not harm anyone.  These climate activities are going to learn two things in the next few days:  (1) Trespassing at an airport is a felony almost anywhere in the world.  That means criminal prosecution.   (2) removing paint from an aircraft is expensive.   So these climate activists are about to find out the reach of the British criminal system and it will not be pleasant, the UK has very strict laws about that, I would be surprised if cleaning the aircraft of all the paint will cost less than $100,000.     I am sure that when they planned (premeditation) this little show they had a very valid logic to doing this.  Tonight, they are probably realizing the depth of their troubles.   I understand that in the UK it's a minimum one-year jail sentence.    Also, good luck travelling with a criminal trespass charge against you.  I am relatively certain that the airline industry will ...

Janet Yellen from China supporter to Hawk...

There is rarely serious news in the world these days, it seems that most newspapers are filled with headlines and little else, and then Ms Yellen went to China.  Secretary Yellen has long been known in the Biden administration as the voice of moderation when dealing with China, yet as her trip which concluded yesterday a hawk was born:  She warned the Chinese against dumping goods in the United States.    fighting words! The American administration is very concerned about the lack of Chinese domestic consumption.   Even before the COVID-19 epidemic, there were already the beginning signs of a slowdown, automobile sales were off.   China is facing domestic deflation (a clear sign of collapsing demand) China imports few consumer goods, they import raw materials and intermediary goods.   It seems that the American administration is concerned that the Chinese administration will dump consumer goods abroad to keep its manufacturing machinery ...