China and Iran are sticking together like glue, despite the world’s eyebrows raising after Iran’s missile launches at Israel. China is shouting its support from the rooftops, not just backing Iran but also beefing up their buddy-buddy status.
And guess what? Russia’s in on this too, cheering from the sidelines after those drone strikes last Saturday.
Now, let’s be for real. China isn’t buying friendship bracelets here. It’s buying boatloads of Iranian oil. The U.S. of course threw a fit, slapping sanctions on Iran and telling China to step off, like a bully would.
But what does China do? It sticks out its tongue and keeps the oil flowing. No surprise there, since China and Iran, along with their pal Russia, decided to kick the US dollar to the curb in their oil deals.
Xi Jinping put it bluntly. My man said, “No matter what the world throws at us, we’re sticking with Iran.” That’s the gist, even if he said it with more polish. And why wouldn’t they?
Iran’s oil is flowing straight into China’s tanks, and that’s not stopping anytime soon. It’s just business, baby.
A Peek at Middle-East Peace Plays
Just a year back, China was playing matchmaker, helping Iran and Saudi Arabia play nice and sit down for a chat. Guess what? It worked. Now, with Iran officially in the BRICS club and Saudi possibly on the waiting list, things in the Middle East might just take a turn for the better.
But let’s not forget the home front — China’s economy. The start of the year saw the economy jump more than expected. From January to March, their GDP shot up by 5.3%, when everyone was betting on a 4.9% rise.
Not too shabby, right? Sheng Laiyun, from China’s stats office, said this sets a sweet stage for the rest of the year. They’re aiming for a 5% growth target this year, even though things aren’t all sunshine and rainbows.
The Home Front
Speaking of China’s economy, the real estate market is tanking, guys. Hard. It’s dragging down loads of cash and leaving shopping malls and fancy hotels with ‘For Sale’ signs. Sales of new apartments took a nosedive by over 30% from January to March. The survivors are not throwing cash around anymore. Investment in real estate has slumped by 9.5% in the first quarter.
Ouch.
And it’s not just about houses and malls. China’s big on making stuff—like electric cars, solar panels, and wind turbines. They’re shipping these off to Europe and the US, which sounds great until you hear about the pushback.
Janet Yellen, the US Treasury Secretary, just about had it with China flooding the market with cheap goods. Even Germany’s Olaf Scholz wagged a finger at China during his chat with Xi Jinping.
Despite all this, China’s factories cranked up production by 7% early this year. But by March, the gears were grinding slower, with industrial growth cooling to 4.5%. Retail isn’t doing hot either. Sales are down, and folks aren’t spending like they used to, especially on travel. The high-end spots in big cities are feeling the pinch, with lots of them shutting down.
China’s leaders are sweating bullets over this, worried not just about their own backyard but also about the West defending its turf from cheap Chinese goods. They know it’s not gonna be easy, despite the economy looking like it’s picking up speed, thanks to high-tech manufacturing and stronger industrial production, including a surge in 3D printing and EV tech.
Still. China kicked off the year strong, with the manufacturing PMI hitting a high note for the first time in six months. They’ve set a gutsy goal of about 5% growth for the rest of 2024. The banks are getting a nudge too, with interest rates cut to spark more spending and investment.
Aaaaaaaaaaaaand, there you have it.
China’s all in with Iran, eyeing a bigger play in the Middle East, and trying to keep its own economy from tanking. Hell of a job, wouldn’t you agree?
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