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USCC China Iran Rpt 11 28

USCC China Iran Rpt 11 28

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Published by: Conservative Report on Dec 22, 2012
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CHINAP
Prepared for the US-Marybeth Davis, James Lecky,
This research report was prepared at Report to the Commission's website is i the Commission in its ongoing assessas mandated by Public Law 106-398 aby the Commission or any individual research report.
 
-IRAN: A LIMITEARTNERSHIP
hina Economic and Security Review Commissorrey Froscher, David Chen, Abel Kerevel, StCENTRA Technology, Inc.October 2012
Disclaimer:
 
the request of the Commission to support its deliberantended to promote greater public understanding of theent of U.S.-China economic relations and their implicati d Public Law 108-7. However, it does not necessarily imCommissioner of the views or conclusions expressed i 
 
ion byphen Schlaikjer
ions. Posting of theissues addressed by ns for U.S. security, ply an endorsement this commissioned 
 
2
Table of Contents
Summary ....................................................................................................................................................... 4Introduction .................................................................................................................................................. 7China’s Relationship with Iran ...................................................................................................................... 7Chinese Investments in Iran’s Energy Sectors ............................................................................................ 10Iran’s Economic and Energy Challenges.................................................................................................. 10China’s Energy Challenge ........................................................................................................................ 12China’s Search for Oil and Gas Abroad ................................................................................................... 15China’s Search for Oil and Gas in Iran ..................................................................................................... 16China and Iranian Energy Relationship ................................................................................................... 16China and Iranian Oil Refining ................................................................................................................. 20China and Iranian Electric Power ............................................................................................................ 21Is Iran Skirting the Embargo? .................................................................................................................. 21Chinese Assistance to Iran’s Nuclear Program ........................................................................................... 25Origins of the Relationship and Context for Concerns ........................................................................... 251990s: Balancing a Response to US Concerns with Continued “Peaceful” Assistance ........................... 27China’s 1997 Commitments to End Nuclear Assistance to Iran .............................................................. 30Evolution of Safeguards and Export Controls ......................................................................................... 30Contradictions and Tensions in China’s Policy ........................................................................................ 32Are Chinese Entities Continuing to Assist Iran’s Nuclear Program? ....................................................... 33Impact of Chinese Nuclear-Related Technology Transfers on Iran’s Program ....................................... 34Chinese Assistance to Iran’s Missile Programs ........................................................................................... 35Direct Support During Iran-Iraq War ...................................................................................................... 35The 1990s: Chinese Assistance Improves Iran’s Production Base .......................................................... 37The 2000s: Sanctions Curb But Do Not Halt Chinese Assistance ............................................................ 38Evolution and Effectiveness of Export Controls ...................................................................................... 41Impact of Chinese Missile-Related Technology Transfers ...................................................................... 42Chinese Diplomatic Supports to Iran on Nuclear/Missile Acquisitions ...................................................... 43Direct or Indirect Proliferation from China through Third Parties .............................................................. 44Effectiveness of US and International Sanctions Regimes .......................................................................... 45Links between China’s Iran Policies and Its Broader National Policy Goals................................................ 48Diverging Interests May Limit Chinese-Iranian Cooperation ...................................................................... 49Iran’s View of China’s Shifting Policies .................................................................................................... 50
 
3Opportunities for the United States ........................................................................................................... 53Appendix A: US and International Sanctions Against Iran .......................................................................... 54International Efforts ................................................................................................................................ 56Appendix B. PRC Entities Sanctions for Weapons Proliferation to Iran ...................................................... 58Appendix C. Integrated Timeline ................................................................................................................ 64Appendix D. PRC Diplomatic Support for Iranian Nuclear and Missile Activities (1997-2012) .................. 72End Notes .................................................................................................................................................... 83

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