Iran and China on Verge of a Huge Deal - Thank Trump

Mish

China and Iran are on the verge of a economic and military deal.

Due to Trump sanctions and EU feebleness China and Iran Near Trade and Military Partnership.

Iran and China have quietly drafted a sweeping economic and security partnership that would clear the way for billions of dollars of Chinese investments in energy and other sectors, undercutting the Trump administration’s efforts to isolate the Iranian government because of its nuclear and military ambitions.

The partnership, detailed in an 18-page proposed agreement obtained by The New York Times, would vastly expand Chinese presence in banking, telecommunications, ports, railways and dozens of other projects. In exchange, China would receive a regular — and, according to an Iranian official and an oil trader, heavily discounted — supply of Iranian oil over the next 25 years.

The document also describes deepening military cooperation, potentially giving China a foothold in a region that has been a strategic preoccupation of the United States for decades. It calls for joint training and exercises, joint research and weapons development and intelligence sharing — all to fight “the lopsided battle with terrorism, drug and human trafficking and cross-border crimes.”

The projects, including airports, high-speed railways and subways, would touch the lives of millions of Iranians. China would develop free-trade zones in Maku, in northwestern Iran; in Abadan, where the Shatt al-Arab river flows into the Persian Gulf, and on the gulf island Qeshm.

Another Loss For Trump Tariffs and Sanctions

Chalk up another loss For Trump tariffs and sanctions. This is potentially the biggest yet. And for what?

Obama worked out a nuclear deal with Iran, and it was a deal that all of our allies signed off on. 

I consider that deal to be the only major achievement of Obama in eight years. Trump took that deal and smashed it to pieces saying he could do better. 

At the same time, Trump engaged in a ridiculous and very counterproductive trade war with China. 

No jobs returned to the US. Instead, Trump made new global enemies, especially in the EU. 

Trump Tweets "Trade Wars are Good and Easy to Win"

Anyone recall Trump Tweets "Trade Wars are Good and Easy to Win"?

But four years have nearly passed and Trump has not won any deal nor have sanctions succeeded in Iran, China, Cuba, Venezuela or anywhere else. 

USMCA is a Proven Failure 

USMCA, Trump's NAFTA replacement. was supposed to bring auto manufacturing jobs from Mexico into the US.

Instead, rather than move production to the US, Japanese auto companies elected to triple Mexican pay.

The result is no new US jobs just higher prices for US consumers. 

For details, please see Trump's New Nafta is a Proven Failure Already

Trump Scraps Deal With China

On July 11, Trump Threw in the Towel on Phase 2 Deal With China.

Trumpian Madness

All we have to show for Trumpian madness is higher prices, angry farmers, a NAFTA replacement that just backfired, poor relations with all our trade partners, and a trade deal with China that Trump just scrapped.

The icing on the cake is Trump just drove Iran into the arms of China.

One Word Synopsis

There is only one word that describes these events.

We call this "Winning".

Mish

Comments (117)
No. 1-26
Stuki
Stuki

It will be interesting to see if Chinese firms get directly involved in the Iranian oil sector. Sinopec is a bit of a backwater compared to Houston, but at least for now, China has proven to have no shortage of quick-study engineers.

Oil service is a huge, high margin industry in the US and Europe. While it's not always necessarily "easy money" for the companies involved (high capital requirements and rather cyclical), if you add up the sheer amount of high salaried, "good" jobs it underpins, it has very much been "easy money" for the West as a whole.

If every other industry the Chinese have gotten involved in is anything to go by, Having to compete directly with the Chinese in the not-too-distant future, will require some changes.

Tengen
Tengen

Yep, we've basically forced China, Iran, and Russia to team up if they want to resist Uncle Scam. We could probably add nearly all of the central Asian countries to that list too, all the way south to Pakistan.

Who could have foreseen that using our post-Soviet global hegemony to focus only on enriching bankers and the MIC could backfire? /s

gregggg
gregggg

Iraq also signing deal with China... and the whole reason we spent all that time in Afghanistan was to block the old silk road project. Fail. fail, fail. The next failure will be israel who sucked the US dry and has no further use for us. https://www.timesofisrael.com/us-senate-warns-israel-against-letting-china-run-haifa-port/

Mr. Purple
Mr. Purple

This is fantastic news. The nations of the world are starting to unite to destroy American hegemony. Once there is a coalition that supersedes the USA, America can begin the long, painful road of rediscovery and moral reckoning. Relieved of the yoke of world domination, attention can finally be paid to the health and welfare of all its citizens and the national infrastructure.

truthseeker
truthseeker

Mish you continue to hammer Trump and most of the time I agree wi you. But long before Trump when we just kept on running a 1 billion dollar a day trade deficit with China, how many times have I asked what would you do to deal with this problem, and I never get an answer? Also you know this pandemic may well finish off America’s oil industry of which you know I am apart. If the pandemic doesn’t finish us off, sleepy Joe Biden and the socialists Democrats have already embraced the AOC Green environmental program which will totally wipe out the industry. So we’ll have all these new regulations to ban all fracking, gasoline taxes, bullshit loosing subsidies for battery operated vehicles of all types just to start with. They make no secret about their plan to take down the industry that before the pandemic supported more industries with more great paying jobs than any other industry! So as crazy as Trump is, he’s still no damn socialist!

Jojo
Jojo

To all those who championed and voted for Trump in 2016, even though they knew he had no real political experience and was a business failure - Payback's a bitch, eh?

nlightn
nlightn

Trump apparently and based on reality,...doesn't get that the world is NOT a game show and he is not the host,...nor does any sane individual(s) even consider him a candidate for that position.

Trump does win at one matter,...He fights for his limitations and wins every time.

When I think of Trump a statement comes to mind that perfectly describes his inability and total lack of self-actualization,.."What you are speaks so loudly I can't hear what you say!"

KansasDog
KansasDog

And I thought Trump vs. Hillary was a no win situation and didn't vote for either. As far as i'm concerned it's over. Im hunkering down for whatever insanity comes this way. Most of my friends are republicans and are constantly on me about not letting the dems in due to socialism and guns. I'm like half the contry is behind them to think you're keeping them out forever is ludicrous. As far as i'm concerned my as well deal with it as there's no stopping it.

Dodge Demon
Dodge Demon

Sudden acute cases of lead poisoning and not enough social distancing at funeral home in Chicago yesterday and I bet nobody was wearing masks, either.

IA Hawkeye in SoCal
IA Hawkeye in SoCal

I grew up in an America that ruled the world, that every kid in high school had a car parked out in front of it, and multiple job offers out of college. This was 20 to 25 short years ago, when first it was America Online and then this funky thing called the World Wide Web came on scene. Seems like yesterday. My Dad grew up with even more freedom, in the glorious late 70's Americana.

I don't care if we have to build 19 more Aircraft Carriers to try and maintain that for future generations, then so be it. I would rather be dead than live in a world where we are less than.

njbr
njbr

"Only I can fix it" should have tipped you off to the essential con-man nature of the speaker, the speaker's bottomless egotism and ignorance. Further, it should have spoke loudly to the fundamentally un-democratic nature of the speaker.

ToInfinityandBeyond
ToInfinityandBeyond

Trump’s lack of a coherent foreign policy is pushing the US into dangerous territory. Escalating tensions with China and Iran courtesy of a supposedly easily winnable trade war and his misguided decision to undo the nuclear accord forged by Obama. He has been played by North Korea’s Kim, Erdogan, Putin and a Saudi regime that stinks to high heaven. We urgentLy need some grown ups to lead this country.

simb555
simb555

Good, let the Chinese go bankrupt dealing with this corrupt country run by by so called revolutionary guards.

dr smock
dr smock

For the record, why the hoopla over China? We should be doing minimal business with this communist country. Their people spit on any product manufactured in the US, and since China entered the WTO in 2001, they only allow US products to sell in China if companies locate to China, build out their facilities, transfer their technology including high end, and are willing to take a less than 50% stake in the operation. For the record, I am no fan of either major party since they both started calling it a global economy years ago, while taking bribes that sold us out. Hello slick Willy and Hillary and goodbye Biden. But when Trump instituted the tariffs on China, which were in the best interests of the US, our former companies, who now call themselves "multi-national corporations", just raised the price by the tariff amount on goods they sell from China rather than increase manufacturing in this country. This caused a significant bump up in prices and Wall Street said nothing.These corporations screwed us and the protesters better take note of what and who they are voting for because their jobs were stolen. Our massive trade deficits with China are choking us to death. These are the same corporations with their hands out as Jerry Powell illegally buys their junk bonds and stocks while they do more buybacks to enrich their CEO's and officers.. Recently, Xi Jinping, the president of China, said America belongs to China because their people were here long before Columbus arrived. And earlier this year, he boasted that they now have a standing army of over 100 million soldiers and their 5 G technology will be the best in the world. China is building the silk road by land and sea and has formed the Trans Pacific Partnership without the US, enlisting many countries in this new trade group. China claims the South China Sea, its islands, along with Taiwan belong to them and is building mini-islands in the South China Sea for military operations to enable this and for trade on their terms. They have no plans for US dollar hegemony as the world's reserve currency in 5 years. Was it Marx or Lenin who said that capitalists will sell you the rope to hang them with? And was Covid-19 conceived in a research lab in Wuhan as many eminent scientists believe? And who is doing the investigative work into this? Nancy Pelosi? LOL

wmjack
wmjack

It is appropriate that the world's GANG run countries should cooperate with each other. These country's enslaved populations are powerless to experience freedom.
To deal with Gangs is not appropriate for the free peoples of the world

Art Izagud
Art Izagud

Free Trade ideologues that metaphorically justify selling guns to kids, as it is Voluntarism and best for the economy, raising all boats, are the ones to blame for this mess. Some societies are lesser developed and should not be given the ability to dominate the planet. Dems prefer head in the sand hubris, and to argue over the gender identities of barbarians at the gate, rather than being responsible for the preservation of Western Civ. Libertarians are just plain overly materialistic, preferring to let elites do as they will as long as it conforms to their bent, though immoral at large.

Quatloo
Quatloo

Great article Mish, keep digging up info like this that the mainstream media barely covers!

rafterman
rafterman

Mish, please stop reading the New York Times as a source for "news", haven't you read Bari Weiss's resignation letter?

Tony Bennett
Tony Bennett

"The document also describes deepening military cooperation, potentially giving China a foothold in a region that has been a strategic preoccupation of the United States for decades."

...

Good. Let THEM have their turn in the meat grinder called the Mid East. The politicians might not care, but the citizens of the US and Russia know all too well the costs.

swamiman
swamiman

Mush you hate Trump so much why not live in Russia to get a taste of what’s to come

truthseeker
truthseeker

As far as what’s going on with the countries here such as China, Russia, Israel and the Middle East, there are dozens and dozens of goofy people on YouTube who keep on talking about end times, the Antichrist, rapture, Armageddon and the second coming of the “Son of Man.”So for me to join this group in whatever fashion would seem to be a very foolish idea. Yet I sincerely believe we are seeing the alignment of nations needed for very important things to come. Once Israel became a nation again in 1948, it has been 72 years until we reached the beginning of sorrows as described in Matt 24:8 KJV. So in all 3 gospels, Matt 24, Mark 13 and Luke 21, especially Luke 21: 9-12, where in addition to other scary signs, we see the word “epidemics” for the first time. All these events as described in the book of Daniel, the first 3 gospels, the book of Revelations and many other places are beginning to take place in a broad interpretation that is really”true”. Not sure if Mish wants me to elaborate on all this....

MorningCoffee
MorningCoffee

Just wait 'till Iran goes to use all that military equipment - finds out just what "Made in China" quality really is!

hunneric
hunneric

Most of you think that all of this is a sudden occurrence. It is all part of a world wide chess match that has been playing for decades. What is going to happen will be slowly maneuvered into place all by design, so no need to get your panties in a wad.

ColoradoAccountant
ColoradoAccountant

All empires die the same way, by going broke supporting their military.

William Janes
William Janes

Difficult to see any upside for Iran. China loans Iran huge sums for unnecessary infrastructure improvements which Chinese companies build with huge cost overruns. China buys cheap oil from Iran which it could buy on the open market for almost the same price. In the end, not much changes in Iran other than local Iranian businesses are bankrupted competing with more efficient Chinese producers. Russia appears to be the big loser in this deal. Loss of influence in Iran and loss of oil revenue to China. The balance of the deal is sheer fantasy. Refer to Pakistan to see how that deal worked out for China. Massive loan write-offs as Pakistan reneges on debt to China. Iran needs better road not fantasy high speed rail projects which dictators from Mussolini to Stalin to Xi Jinping love. Whole post overstated, go inside, stay out of the sun.


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