China looms large over the entire US-Iran war - but what does leader Xi Jinping really think of the conflict and how is he exploiting it to benefit Beijing?
On part 2 of today’s episode of Iran: the Latest, Venetia Rainey speaks to world-renowned China expert Steve Tsang, director of SOAS’s China Institute, about Xi’s support for Iran despite its claims of neutrality. Tsang reveals why Donald Trump’s costly military intervention creates an unprecedented opening for Beijing and how it shifts Xi's calculations on invading Taiwan.
Plus, they discuss how China is building a new world order around itself using events such as the Shanghai Cooperation Organisation to weaken the Western-led international order and whether a war with the US is inevitable - the dreaded Thucydides Trap.
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Video Summary
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Expert Steve Tsang analyzes China's strategic approach to the US-Iran conflict and its broader goal of global preeminence. Xi Jinping leverages international instability to position China as the leader of the Global South, aiming for a Sinocentric world order. While pursuing \"national rejuvenation\" and the eventual unification of Taiwan, China balances pragmatic support for Iran with a cautious, long-term timeline.
I'm Vaneesha Rainey and this is Iran The Latest.
Now there's one country that looms large over the entire US-Iran war and yet
its intentions remain largely inscrutable, China.
From its quiet backing of Iran with satellite data to target US targets,
to how it's helped stabilise the oil market despite the Strait of Hormuz being closed,
Beijing's role in this conflict has been quietly crucial.
Yet it's also been hard to understand.
The statements put out by leader Xi Jinping call for dialogue and peace,
but his actions say otherwise.
So what exactly is China's attitude to the Iran war?
What is Xi doing to support the Iranian regime?
And how is the conflict affecting his calculation about when to try to take Taiwan?
To discuss all of that and more,
I'm joined by one of the world's leading experts on China under Xi.
Steve Tsang is director of the SOAS China Institute and co-author,
along with Olivia Cheung, of a new book, China's Global Strategy Under Xi Jinping.
He also wrote The Political Thought of Xi Jinping.
And he was born in Hong Kong, a territory that Xi has crushed,
transforming it from a vibrant democratic hub into a shell of its former self.
So this is someone who knows China's leader and the dangers of his worldview inside out.
Steve, welcome to Around the Latest.
Hello, Manisha.
Delighted to be here with you.
So Steve, I just want to start with quite a broad question.
I want you to take us inside the head of Xi,
someone you know better than most other people.
I wonder what you think he made of the US-Israel-Iran war when it erupted.
In many ways, it's the exact opposite of everything
that you describe in your book about Xi's worldview.
You know, the US acting as the world's policeman at great cost to itself,
intervening in another country's affairs under the pretense of supporting human rights.
So I wonder what you think was going through his mind
when the US and Israel launched those attacks on February 28th.
Was he rubbing his hands together with glee
at the potential opportunity it presents for China,
or do you think he saw it as a threat to a stable world order
he's trying to build where China can thrive?
At first, I think his reaction was somewhat mixed,
because immediately he would have seen the economic implications
of the US use of force against Iran
and disruptions to the supply of oil and energies more generally
and to the trading operations that needs to go through the Strait of Hormuz as well.
And since China is the largest importer of energy and also exporter of goods,
the war was not something that he had wanted.
But having said that, he was also rather pleased by that,
because he couldn't see how the United States under Trump
would come out well out of that conflict.
It really would not take him very much to see that Mr. Trump or President Trump
was unwittingly doing him a favor,
because if Xi Jinping wants to deliver the global strategy
that he has laid down for China,
he would require a clear demonstration of how the US-centric
and US-led liberal international order is in utter chaos and unfit for purpose.
So much so that the Chinese case to transform that liberal international order,
broken and unfit for purpose, into a different variant
that would be suitable to deliver what Xi Jinping calls
the democratization of international relations,
would be something that would be appealing to the rest of the world.
So in that sense, the positive outweighs the negative.
Interesting.
Your book talks about Xi Jinping as a forward planner, to put it lightly,
and he's come up with this policy of a China dream of national rejuvenation.
It sounds like a very flowery language, I think, in English,
but probably makes a bit more sense in Chinese,
because I know there's a lot of these sorts of sayings.
And it's supposed to be achieved by 2050.
And you talk about two main pivots to get there.
One is about adjusting the international institutions
so that they become Sinocentric.
And the other is about this large sort of coup de grâce
to show the ascendancy of China.
And that, in your book, is the taking of Taiwan.
And I want to come on to Taiwan later,
but I just want to start with this shifting of the world order
and the international institutions.
China does a lot at the UN, you point out,
mainly through the General Assembly rather than the Security Council,
although it does have a veto on the Security Council,
because it always wants to promote the global South
as being the majority of the world
and as being unfairly oppressed by the West, led by America.
And we've got a summit underway at the moment,
the Shanghai Cooperation Organization,
which taps into that.
It's not the UN, but it's another sort of meeting of global South players
led by China and Russia largely,
but lots of other countries part of it, including Iran.
And the summit's declaration today
had pretty strong political language on Iran.
It condemned the military strikes on Iranian territory,
backed Iran's sovereignty, not surprising for China,
offered condolences over the death of Supreme Leader Ali Khamenei,
and also opposed unilateral coercive measures
that conflict with the UN Charter and international law.
Nothing on Ukraine, of course,
as Russia is the other big partner at that organization,
so no surprises there.
So lots of statements of support for Iran,
but no formal progress on something that Iran was looking for,
the Shanghai Development Bank,
which would have helped to de-dollarise
or provide a de-dollarised route
for countries such as Iran
that are under the cosh of American sanctions.
Can you just talk us through China's strategy
with these global forums
like the Shanghai Cooperation Organization?
What is it trying to do,
and what tangible support is it trying to offer
countries like Iran through them?
Well, if I may, I would start off by outlining
what Xi Jinping's overall ambition for the global South is,
and then bring it back into the SCO
rather than start with the SCO
and try to expand it the other way around.
Now, in terms of China's ambition
for the international order,
what Xi Jinping tries to do
is to forge a common destiny for humankind.
And I use these terms carefully
because this is what his original Chinese words
need to be translated correctly.
But forging a common destiny for humankind
with a leader who has a vision
and the ability to lead and organise
is very much implied there.
And that leader, of course, is China.
And the process that Xi Jinping wants to deliver it
is what he calls
the democratisation of international relations.
Because the liberal international order,
from his perspective,
is clearly an international order
of, by, and for the West.
And the West, or the democratic West,
is by UN member state terms
at the General Assembly
or in global population terms,
a very small minority.
The overwhelming majority of UN member states
and the world's populations are from the global South.
Of which, Xi Jinping says,
China will forever be a part,
implying that China, and who else,
should be the natural leader of the global South.
So there's this very strong engagement
of the global South in the UN
with a language that makes leaders
and even a lot of people in the global South
much more comfortable
compared to what is the language
of even the pre-Trump liberal international order.
But in the liberal international order
of the Trump era,
the Chinese narrative is much more attractive.
And amongst the organizations
that China uses to advance this cause
is, at the center, is the UN.
But there are also a number
of global South regional organizations
which are seen by China
and used by China
as important building blocks
to build up that support
for that expectation
and momentum to transform the international order.
The SCO is one of them.
And so you have, at the SCO summit,
where Xi Jinping was spending a lot of time
talking about his four global initiatives,
where a member of the SCO is Iran,
where Xi Jinping lead the SCO
to speak favorably in defense
of the rights of Iran,
one of the SCO members,
to do what they will say
is Iran's absolute rights.
At a time when the president
of the United States
had threatened substantial
or devastating secondary sanctions
against anyone trading with Iran,
of which the single biggest trader is China.
Specifically with Iran,
I feel like China and Iran
have a slightly curious relationship
that I haven't entirely made sense of,
and it'd be great to get your thoughts on it.
Just for example,
at the SCO summit
that we've had yesterday and today,
and as you say,
these are ongoing
while America has been threatening
huge economic programs.
We've had more tit-for-tat strikes
occurring over the last few days
after America bombed
some rocket launchers
on the Iranian coast
in the Strait of Hormuz.
Iran responded by hitting Jordan
and we've had more tit-for-tat strikes.
And so it's a time
which Iran is looking
for public shows of support,
and it got those shows of support.
Iranian President Massoud Rajavi was there.
He took pictures
with Russian President Vladimir Putin,
Narendra Modi.
But Xi Jinping kept Pezhishkian,
as far as we can tell,
publicly,
we don't know what happened behind closed doors,
at a bit of a distance.
It kept a very brief,
low-profile audience at the SCO summit,
according to reporting.
Chinese state media
gave extensive coverage
to Xi's encounters
with other visiting leaders,
but made no mention
of a meeting with Pezhishkian.
What do you make of that?
Well, there is a summit
that Xi Jinping is going to attend
later this month,
and that is the summit
with Donald Trump
towards the end of the month.
Now, for all that is being said
that China's global strategy
is pivoted to global south,
Xi Jinping also knows
that he needs to manage Trump.
And there is no reason
why he would want to needle Trump
by demonstrating
the kind of personal relationship
with the Iranian president
in a way that would go down
quite badly with Mr. Trump.
So I think that is
the pragmatic side
of Chinese diplomacy.
But with the SCO statement
actually being supportive,
in fact,
quite supportive of Iran,
he is already sending that message
clearly to his constituents
without having to take a step
that could trigger
an unguided response
from Donald Trump,
which could potentially
cause problems
because Xi Jinping
is not going to go to the United States
if there's any indication
that he is going to have to end up
in a shouting match with Donald Trump.
That's just not going to happen.
It's a curious policy though, isn't it?
Because as you say,
sort of maintaining,
but the official statements
that we get from Xi
or from Beijing
are neutrality on the conflict.
You know, they call for dialogue,
call for peace.
And then we have this SCO,
but it's a statement put out
by the whole summit.
So it can't be sort of pinned
too much on Xi specifically.
Although, as you say,
he would have had to sign off on all of it.
So it's a message.
And then in the background,
we know that China does supply Iran,
we believe, with weapons,
you know, manpads has been reported,
sort of shoulder rocket launchers.
We know that they provide them
with satellite imagery technology
to help improve their targeting
of US military sites.
Potentially buying oil.
I mean, what can you tell us
about how China's been supporting Iran
through this conflict?
And what has it not been doing as well?
Well, a declaration of neutrality
is one thing.
To acting entirely genuinely
in a neutral way
is a different matter.
The Chinese have clearly said
they are being neutral about that.
But even in that statement
of neutrality,
it is not entirely,
strictly speaking, neutral.
Because the war was started by Donald Trump
with not terribly clearly defined,
but strongly implied image
that this is going to get Iran
to subjugate to American might
and accept that it will have
to follow American's will.
And end of that war
essentially would imply
the United States under Trump
not getting what it wants.
And Iran, just by surviving,
will effectively have won.
So it's a neutrality
that clearly favors the side
that China is more friendly with.
So the element of supply and support
that China continues to engage with Iran
is in line with the general thinking there.
But again, China does not want
to pay a price
for picking on the United States,
not at a time and circumstances
of its choosing.
If and when China is ready
to take on the United States,
Xi Jinping will give that order.
Xi Jinping is not somebody
who will simply want to react
and respond to a situation
created by somebody else
that could potentially
take the initiative out of his hands.
He wants to keep the initiative
in his own hands.
He is tightening control
across the board.
When I say across the board,
I meant across the board,
with no exceptions
on all policy matters in China.
It is not somebody
who will concede that.
Taiwan is really the
peak of this policy, right?
The thing that Xi is aiming at,
and you talk about it in length in your book.
You detail lots of factors
that will go into when Xi decides
the time is right to take Taiwan.
You know, you talk about
maintaining regime security,
Xi thought,
and the risks involved if it fails.
You know, America's ascendancy
and creating enough deterrence
to America getting involved.
I wonder what you think
about how your book stops
before you get to the Iran war.
I believe you finished it
towards the end of last year.
I wonder how you think the Iran war
has affected Xi's calculations
on Taiwan, if at all.
You know, we've had lots of discussion
of America using up key munitions
and how long it will take
to replenish those.
It's depleted its Indo-Pacific force posture.
You know, the only dedicated
Pacific aircraft carrier
has been diverted to the Middle East.
Europe and America increasingly divided,
which is something that you touch on
in your book.
How do you think this conflict
might be playing into
Xi's thinking on Taiwan?
Now, I'm going to throw
a throwaway remark.
Don't take that over seriously.
Xi Jinping might have been
kicking himself a bit
that the PLA is not ready
to take Taiwan at this point.
Because there is a good moment
if there is ever one
for China to take the initiative
over Taiwan.
With the Americans being tied down
in the Middle East,
with its ammunition stocks running low,
with its aircraft carrier
based in Tokyo being redeployed
to the Middle East.
With American key allies,
whether you are talking
about the Europeans
or the Asian Pacific ones,
including South Korea,
being less than pleased by the way
how the Americans have been
managing their relationship
and the global strategic
redeployment of troops.
And President Trump's
very warm words for
Mr. Kim of North Korea.
But the reality is
the PLA is not ready
to take on the most difficult,
ambitious and risky
military operation
in human history.
And that's what we are talking about.
There are only about 11
or 12 landing beaches in Taiwan.
Each one of them,
very small and very quickly
meeting cliffs and high hills.
So they are relatively easy to defend
compared to the Normandy beaches
that the airline forces
spent two years to prepare
before storming.
So the Chinese will want to be
very, very certain
that they can win
because if Xi Jinping
order an invasion of Taiwan
and that fails,
unleashing all kinds of consequences,
it could potentially result
in the Communist Party leadership
getting the daggers out
and try to get rid of him.
Now, he is not somebody
who has demonstrated
in his 13 years in power
any recklessness.
He took calculated risk,
but he's not on one occasion
act recklessly.
For him to order an invasion of Taiwan
before he is pretty much certain
the Chinese forces
will be able to do that
if the Taiwanese were,
from his perspective,
stupid enough
not to accept
the inevitable tide of history
and simply embrace reunification with China,
which from the Taiwanese perspective
means surrendering.
And his calculations
is that the Taiwanese
probably are not going to be
wise enough to do that
and therefore he would have to use force,
which implies China
will have to either deter
the United States from interfering
and the Americans have
some kind of a formal legal obligation
under the US-Taiwan Relations Act of 1979
to help Taiwan defend itself
against a forceful external attempt
to change the status of Taiwan.
And if China cannot deter the US,
China will have to be able
to inflict sufficient damages
to US forces deployed to support Taiwan
in order to force the Americans to back off.
Either way,
China will have been seen
very visibly
that it has gone eyeball to eyeball
with Uncle Sam.
And of course,
it would also mean that
China will have seized control of Taiwan,
which is right in the middle
of the strategically critical
first island chain
in the Pacific Ocean
enabling China
not only to defend the security
of its eastern seaboard
but also project power
deep into the Pacific Ocean.
That is fundamentally a game changer.
Assuming that when that happens,
China will have consolidated support
within the global south
for its wider global agenda
at institutions like the UN,
then you will also have
strong international support
for China competing to work
its project over Taiwan
and be embraced therefore
as globally preeminent power in the world.
That's when both pivots
will have come together
and China will have delivered
the China dream of national rejuvenation,
which in plain English
is to make China great again.
Yes, and I want to come on to that
in just one second.
I've just got one more Iran war question
because I love that you explain this policy
as the Chinese version
of a make America great again.
I wonder if you think Xi
is taking another lesson
in the sort of foibles
of being over certain.
Trump and Xi are obviously
very, very fundamentally different people,
but Trump, it seems clear now,
was certain that the Iran war
would go his way,
that the Strait of Hormuz,
despite all of the warnings
and all of the studies
and war games over the years,
that he wouldn't have to deal with that
because Iran would capitulate so quickly.
And I wonder if you think
Xi is looking at that and thinking,
I've got to be more than certain
before I do this.
Oh, absolutely.
It started, in fact,
with the Russian invasion of Ukraine.
Two key lessons the Chinese drew
from the Russian attack on Ukraine
was that the preparations
need to be extremely well done.
And B, the risk of miscalculations
is very, very high.
And you have to make sure
that none of those happened.
The American use of force
against Iran simply reinforced
what the Chinese were already seeing
as a very important lesson
that they must draw
before they take on Taiwan.
Because from their perspective,
taking on Taiwan is not just about
taking on a medium power.
If Taiwan were completely isolated
without American support,
the Chinese can afford to take that risk.
Their calculation is that
when they take on Taiwan,
they are taking on the United States,
one way or the other.
And therefore,
being less than totally prepared
times two would be reckless.
Let's zero in on this Chan-Shia policy
that you have mentioned a few times.
Basically, as you said,
China's version of
make America great again.
But it has a much deeper philosophy,
doesn't it?
Historical background
and a lot more planning from Xi
as to how to get China there
than I think Trump's put in
to make America great again.
Although, good hats.
I think we can agree.
What is it?
And how does it inform Xi's foreign policy?
Well, it means that China
needs to spend a substantial amount of efforts
to build up its international network.
It is also going to be engaging
with the world in a ways to
transform China from being a rule taker
to become a rule maker.
It also implies China needs to build up
its comprehensive national power,
not just the military power,
important as it is
and building up as they are doing,
but also the kind of economic muscle
that China has
or China will need to have
because China will have to be prepared
that in the event of China
using force against Taiwan,
the, in quotation marks,
misguided Democratic West
might think that they could do
a bigger version of their sanctions
against Russia
and cripple the Chinese economy.
And they would want to make sure
that it will be the other way around
and therefore it would be
a better option
for the Democratic West
to accept Chinese preeminence
than to try to confront China
and be battered by China.
So yes, it means a lot of preparation
and therefore the timeframe of 2049, 2050,
which is nearly a quarter of a century ahead,
is something that we have,
I think, should take seriously.
It's not just something that
Xi Jinping plucked out of the air
because 2049 would have been
the centenary year
of the People's Republic of China.
That's where it started.
2015 was the timeframe
that was slightly adjusted
to make it into the mid-century point.
But with the kind of ambition
that is being articulated
and the need to be able to prepare
the capacity to ensure
the certainty of success,
the timeframe is something
which I think becomes significant.
Yeah, I'm glad you mentioned the timeframe
because as you say,
you peg it to 2049, 2050.
There was a lot of talk about 2027
and we did a podcast series last year
about China's military.
We spoke to lots of experts
where they were explaining 2027
is when he wants the PLA to be,
they need to be in a state of readiness.
A lot of confusion around that
2027 date.
But I defer to your 2049, 2050 date
because I think it makes a lot more sense.
I just want to return
to this Chansha concept
because I think it's fascinating,
this Sinocentric world order
that Xi is trying to build.
And I think the phrase means
one family under heaven.
Is that right?
Another sort of wonderfully flowery phrase.
And it existed for 1,500 years.
And I think this speaks
to what Xi is trying to do
and what you elucidate
so well in your book
is revive the historical greatness of China
to end this century of humiliation
which looms large in the Chinese imagination.
And he wants to create a world view
where China is at the centre
and then these sort of concentric
circles of influence.
And it is really a spheres of influence
world view, right?
Where I want to take you with this
is that there's so much discussion
about a looming war
between the US and China.
We had the National Security Strategy
which has named China
as a major American enemy.
But China, according to your book,
Xi doesn't see that
as necessary, necessarily.
He wants to create this sort of
more spheres of influence world view.
He doesn't want to become,
he doesn't want China
to become the new America,
as you put it.
He doesn't want dominance.
He wants preeminence.
Can you just explain that
a bit more for us?
Well, first of all,
let me explain that
the Tensha conceptualization
is based on Xi Jinping
and the Chinese Communist Party's
understanding of history.
It is not necessarily good history.
Right.
And the starting point really there
is that in 2013,
when the year after,
months after Xi Jinping
became the supreme leader in China,
he introduced a concept
which is called historical nihilism.
And historical nihilism means
anybody providing any interpretation
or for that matter,
evidence to contradict
the version of history
as presented by the Communist Party
and therefore the Chinese government
will have committed the heinous crime
of historical nihilism.
It is absolutely prohibited.
So there is in China today
only one version of history
and Xi Jinping's version of history it is.
Now in this reconstruction of history,
Tensha was supposed to have happened
when China was
the most powerful, richest, advanced,
innovative, organized
and capable nation in the world.
They avoid the term empire
because Xi Jinping said famously
that the Chinese people
do not have one single imperialist gene
in his gene pool
and therefore has never ever invaded anybody
in his 5,000 years of history
in British and Marx.
Now in this conceptualization,
the best of time in history
was when China was so powerful
that every other nations
will look up to China
in awe and in admiration
and in being inspired
so much so that
they would all then embrace
Pax Sinica.
And China therefore is preeminent
and the world is a better place.
Pax Sinica, the Chinese version of Pax Americana,
sort of, but not quite.
Oh, it's a Chinese version of Pax Sinica
because Pax Americana
implies America playing the role
of global policemen
delivering a lot of international obligations
since the end of the Second World War
for which Xi Jinping has zero interest in delivering.
That's why they don't want to replace
the United States
as the global hegemon.
They simply want global preeminence
and implying they don't have to deliver
the obligatory side
of American global hegemony.
And that's why I avoid the American version
of it being Pax Americana.
That implies the obligation.
Pax Sinica does not.
Now the problem with that
is that if you look at Chinese history,
as we look at history worldwide,
when China was that great, prominent,
powerful political unit,
it was an empire.
And as an empire,
it behaved like empires everywhere else.
All across human history,
whether you're talking about the Roman Empire
to the British Empire,
they were all the same.
They used force to subjugate
and dominate as and when required.
So the Xi Jinping version of Tiansha
is more mythical than real,
even though there was a kind of a tributary system
that had previously existed
in the neighborhood of China
where countries neighboring China
pay a kind of tribute to China
in return for trade and favor.
And for those being further afield,
having less to do with it.
And they were simply seen as barbarians.
Do you think it's possible for China
to avoid some kind of war with America?
Or does that feel almost inevitable at this point
if it is really set on taking Taiwan
and establishing preeminence
in its sphere of influence,
which America by default will take as
it being pushed out of being
the dominant superpower in the world?
It seems that Xi is aware of the possibility.
That's why I'm asking,
in May when Xi and Trump met,
Xi asked,
can China and the United States
transcend the so-called Thucydides trap
and forge a new paradigm
for major power relations?
The Thucydides trap,
for our listeners,
refers to the idea
that when a rising power threatens to displace
an established one,
the result is often war.
Is it possible to avoid that?
If the democratic countries
of the Western world
collectively work together,
and that includes the United States,
both in contesting China's ambitions
over the international order
and in devising an effective way
to deter Xi Jinping personally,
then I think a war can be avoided.
One of the most important findings of the book
is that Xi Jinping
is so obsessively focused
on keeping himself in power,
he will not do anything
that would trigger forces
that could lead to a challenge
to his hold to power.
And that is where that deterrence can work
in a Taiwan scenario.
If we can send a message clearly to Xi Jinping
that please don't do it
because if you did,
our reactions will be A, B, C, D, E.
And if all this were being done,
it's going to unleash forces
within the Communist Party leadership
to question whether your leadership
is worth the cost
it is being imposed on China.
And that could potentially deter him.
And it has to be something
that he could immediately understand.
But can the Democratic West
organize and coordinate
and be able to have that unity of purpose
and diplomacy to deliver that?
That is the question.
Under the Trump administration,
it almost certainly cannot do that.
There is no united front
of the democracies at the moment.
Can it be fought?
Yes, I think it can be done.
And likewise, we can contest
the Xi Jinping rhetoric
about the democratization
of international relations
and his agenda for the United Nations.
We have not been paying attention
to the UN
and other international organizations
to make it function properly
for a very, very long time.
About time that we do it now.
Sif Zhang, director of the SOAS China Institute.
Thanks very much for joining us
on Around the Latest
and your book with Olivia Chung,
China's Global Strategy Under Xi Jinping,
is out now.
Thank you very much, Aminisha.