Global tensions continue to increase as the Iran conflict enters its second year. The energy supply chain is under stress, and the oil price has been rising rapidly. China now tries to take a position as a broker in this scenario.
Donald Trump also suggested that a possible US military intervention could produce results in a matter of weeks. There is no strategy in place for the next steps.
China, Pakistan push for Ceasefire Plan
China does not act alone. Pakistan is also acting as a surprising mediator in the dispute involving Iran, Israel and the US.
The two countries each have a plan of five points. They have simple goals. The main goals are simple.
The role of Pakistan is becoming more and more prominent. Washington has shown some trust in Pakistan, and this could help to strengthen the country’s position as a facilitator.
China’s participation adds an additional layer. Not only is it about the peace. Influence is important, particularly ahead of the expected meetings between Xi Jinping & Trump.
China’s Involvement Now
Beijing had largely kept quiet about the conflict in the past. Its approach is clearly different now.
Stability is the main factor. China is heavily dependent on international trade. Exporting products worldwide is essential to China’s economy. China’s industries are directly affected by any disruption in global markets due to energy shortages.
Even though China may have oil reserves in the short-term, an extended conflict can still harm its economy.
China’s concern over a protracted energy crisis is cited by experts. An increase in the price of oil could weaken demand globally. This would have an impact on factories and exports in China.
The Economic Risks of Diplomacy
China’s peace push is more than just political. The push for peace is not only political.
Global growth may slow if the conflict persists. Increased energy prices would impact manufacturing and commerce. The pressure this puts on China’s economy, which is already in trouble, will be significant.
China wants to safeguard its own economic interests by acting as a broker. China also wants to portray itself as an international power that is responsible.
Can China be a Peacemaker in the World?
China’s diplomatic action shows intention, but its success is not certain.
There are multiple players involved in the conflict. Every player has their own interest. This makes it difficult to reach an agreement.
China could still help to open the dialogue. A temporary ceasefire could reduce tensions in the world and help stabilize markets for energy.
At this point, everyone is waiting to see whether diplomacy will succeed in a situation where the conflict escalates.
