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ATTENTION!

Given the IS-IR conflict, I created SITREPs for those wishing to follow my thinking. I’ll adjust and I won’t always get it right. It is my thinking nonetheless.

Today’s focus: China’s benefits & risks.

Because of this conflict, China’s benefits, are primarily strategic & indirect, rooted in its broader geopolitical & economic interests. 

Below are the specific ways China gains:

1. The conflict weakens U.S. Influence in the Middle East. It diverts U.S. attention and resources from Asia, where China faces pressure over Taiwan and the South China Sea. By keeping the U.S. entangled in Middle Eastern crises, China gains breathing room to pursue its Indo-Pacific regional ambitions with less interference.

2. If there is no regime change in IR, it will strengthen ties with them. China’s close relationship with IR, cemented by a 25-year cooperation agreement beginning in 2021, is bolstered by the conflict. IR, increasingly isolated, relies on China as its primary buyer of sanctioned oil (over 90% of IR’s crude exports go to China). This secures China a discounted energy supply, critical for its economy, while giving Beijing leverage over Tehran. China also benefits by its diplomatic voice while not having to commit military forces (yet).

3. The conflict enhances China’s regional diplomatic clout. China is using the conflict to project itself as a neutral & global peacemaker, contrasting with the U.S.’s perceived bias toward IS. By condemning IS actions & calling for de-escalation, China appeals to Arab states & the Global Asian South, boosting its image as a champion of non-Western interests. Its mediation efforts, like the Saudi-Iran rapprochement in 2023, gain China credibility, potentially expanding their influence deeper into Middle Eastern diplomacy.

4. China will take advantage of economic opportunities because of the instability. Due to the regional instability China benefits by disrupting U.S.-aligned trade routes (e.g., through the Suez Canal or Bab Al-Mandab Strait), increasing reliance on China’s Belt & Road Initiative (BRI) infrastructure. However, China prefers “controlled instability”, as a full-scale war could threaten its Middle Eastern oil imports (nearly half its supply) along with many of its BRI projects.

5. China’s keen observation of all military engagements, particularly missile & drone performance, will help to refine their own defense strategies. IR weapons, often incorporating Chinese components or designs, provide real-world testing data. A prolonged conflict could also weaken IS’s technological edge, reducing its ability to counter Chinese tech investments in the region.

6. By supporting IR, China indirectly backs IR’s proxies (e.g., Hamas, Hezbollah, Houthis), which challenge IS & U.S. short & long term interests. This low-cost strategy allows China to pressure Western powers without direct confrontation, aligning with its non-interventionist policy. There are many who correctly suggest China supplies weapons components to IR & its proxies, further amplifying its influence.
 
These benefits are not without significant risks.

A broader regional war will disrupt its energy security & BRI investments, which rely on Middle Eastern stability. Additionally, China’s pro-IR stance strains relations with IS, a key technology partner, potentially limiting access to IS innovation. Beijing’s difficult balancing act—maintaining ties with both IR and IS—requires careful diplomacy to avoid alienating either side. The administration needs to pay close attention here.

Conclusion: China benefits by leveraging the conflict to undermine U.S. dominance, secure cheap oil, enhance its diplomatic stature, & gain military insights, all while maintaining a low-risk, non-interventionist stance. However, these gains depend on the conflict remaining contained, as escalation will jeopardize China’s fragile economy & other geopolitical interests & alliances.

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