Iranian President Hassan Rouhani and Chinese President Xi Jinping greet children during the welcome ceremony at the Xijiao State Guesthouse in Shanghai

The Donald Trump administration’s determination to squeeze Iran economically after withdrawing from the nuclear deal is already succeeding on one front: frightening European investors out of making deals with Teheran.

Yet Iran’s leadership thinks it has a secret weapon: to use Chinese investment and oil purchases as a way to compensate for the loss from the West.

Given China’s high energy needs and the trade war now on between Washington and Beijing, this may seem a realistic scenario. But it’s almost certainly a fantasy: While China can indeed take some of the sanctions heat off Iran, it is neither able nor willing to be Tehran’s economic savior.

Read full article at Bloomberg