Geithner presses Beijing on Iran sanctions

US Treasury Secretary Timothy Geithner (C) and US Ambassador to China Gary Locke (L) meet with Chinese Vice President Xi Jinping (R) at the Great Hall of the People in Beijing yesterday

US Treasury Secretary Timothy Geithner met Chinese leaders yesterday to try to resolve yawning differences over sanctions on nuclear aspirant Iran, a major supplier of oil to the Asian giant.
Geithner’s visit, which will also take in Japan, comes amid escalating international tensions over Iran’s nuclear ambitions and a day after the United States accused Tehran of “blatant disregard for its responsibilities”.
New US sanctions intended to put further pressure on Iran bar any foreign banks that do business with its central bank – responsible for processing most oil purchases in the Islamic republic – from US financial markets.
But Geithner is likely to encounter strong resistance from China, which buys 20-22 percent of Iran’s crude oil, and has repeatedly opposed the sanctions.
China yesterday called on Iran and the UN atomic watchdog to cooperate over the new uranium enrichment plant, amid mounting international tensions over Tehran’s nuclear programme.
“We hope Iran and the IAEA will stress cooperation and earnestly carry out the safeguards and clarify pending issues in the Iranian nuclear programme as soon as possible,” said Chinese foreign ministry spokesman Liu Weimin.
Vice foreign minister Cui Tiankai had warned this week against linking China’s trade relations with Iran with Tehran’s nuclear programme, saying Beijing’s “legitimate concerns and demands should be respected”.
A senior Chinese diplomat went further, warning of disastrous consequences if the Iranian nuclear row escalated into conflict.
“Once war starts in this region not only will the relevant nations be affected and attacked, it would also... bring disaster to a world economy deep in crisis,” said Chen Xiaodong, a top diplomat on Middle Eastern affairs.
Meeting Vice-President Xi Jinping, who is tipped to take over as China’s president next year, Geithner said the United States wanted to build trade ties with the world’s second largest economy.
“We are looking forward to exploring opportunities to expand our exports to China and strengthen and deepen our cooperation with China on a broad range of economic and strategic issues,” he said.
“On economic growth, financial stability around the world, on nonproliferation, we have what we view as a very strong cooperative relationship,” he added.
Geithner was also to raise the issue of China’s currency in meetings yesterday with Xi and with Premier Wen Jiabao.
Washington argues that Beijing’s decision to keep the yuan artificially low fuels a flow of cheap exports that helped send the US trade deficit with China to more than USD 270 billion in 2010.
But the sanctions are likely to top the agenda for his visit, which comes in the same week the UN atomic watchdog said Iran had begun enriching uranium to up to 20 percent at a new plant in a fortified bunker sunk into a mountain.
Meanwhile, the announcement of Premier Wen’s visit Saudi Arabia, Qatar and the United Arab Emirates this week, as the West’s standoff with Iran intensified, pushed up oil prices yesterday.
Geithner is expected to discuss Iranian oil with Prime Minister Yoshihiko Noda and Finance Minister Jun Azumi in Tokyo today.
AFP