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