Russia, China and Iran Alliance: A shift of power game towards Asia

(Dr Syed Mehboob, Karachi)

Russia, China, and Iran Alliance: A shift of power game towards Asia

By Dr.Syed Mehboob
Research Scholar, Analyst
America is not the sole superpower of the world. Others are also stakeholders in global affairs, and they, too, have emerged as very important players in the global power game. They are Russia, China and Iran. The power game has entered a new phase. Those players who have a better vision, understanding of the global politics, economy, and have the ability to make decisions with acumen, far-sightedness could win the game.
Russia, China, and Iran have emerged as very important players in the global power game. Their alliance and collaboration can change the game. International policy makers cannot ignore them and even if they ignore they will have to pay the price.


Country Population in millions GDP US$ billion PPP GDP US$ billion Nominal GDP per capita PPP$ GDP per Capita Nominal
China 1,400 30,180 19,910 21,364 21,364
Russia 145.47 4,365 1,829 30,013 12,575
Iran 83.183 1,573 1,739 18,332 20,261

Trade Statistics
Country Exports US$ billion Imports US$ billion
China 3,600 2,690
Russia 551 366
Iran 127.43 60.46

Iran and China have signed a 25-year cooperation agreement on the further development of Iran-China relations, signed in Tehran by the Chinese and Iranian foreign ministers on 27th March 2021. According to the agreement, China is to invest US$400 billion in Iran’s economy. The agreement includes up to US$280 billion towards developing Iran’s oil and gas and petrochemical sectors and another investment of US$120 billion towards upgrading Iran’s transportation and manufacturing infrastructure. Reviving the Chinese One Belt One Road initiative is also part of the agreement. Iran is also supplying Drones to Russia, which is an important development and shows the strategic ties between Iran and Russia.
Trade between China and Russia surged by 36% in 2021. Bilateral trade between the two countries has reached the equivalent of $146.9 billion. Russia mostly sells China coal, oil, natural gas, and agricultural products. China sells Russia machinery, transportation equipment, mobile phones, cars, and other consumer products. China buys more from Russia than it sells to Russia.
.After the Ukraine crisis, America and Europe imposed worst sanctions against Russia. The objectives of these sanctions were to isolate Russia, to hit its economy, to limit its advancement, and to prevent it from playing any active role in global politics and the power game. Did these sanctions and other measures prove effective? The reality is quite different. The reality is that Russia is gaining, and Europe is severely hit by its efforts to isolate Russia and to impose sanctions on it. Russia has exhibited resilience, the best one can imagine in the world.
Recently President Vladimir Putin visited Iran where he met with Turkish president Recap Tayyap Erdogan and Iranian President Ebrahim Raisi. In his first trip outside Russia since the Ukraine crisis emerged, Russia’s president received endorsement for the Ukraine war, with Iran’s supreme leader claiming NATO would have eventually started the conflict. He also supported Putin's aims in Ukraine, with the Iranian Supreme Leader Ali Khamenei saying at the trilateral summit that the West opposes an “independent and strong” .Russia. Khamenei echoed past claims by Putin that NATO -- which he called a "dangerous creature" -- would have eventually attacked Russia. "NATO would know no bounds if the way was open to it, and if it was not stopped in Ukraine, it would start the same war using Crimea as an excuse," he was quoted as saying on his website after meeting with Putin in Tehran. This was a big success for Russia.
Iran and Russia's national energy companies - National Iranian Oil Company and Gazprom; signed a landmark Memorandum of Understanding (MoU) this week. According to the deal Gazprom will be involved in the extraction of oil and gas at several sites across Iran potentially worth $40 billion. This is another big achievement of Russia besides there is news that Russia will purchase Iranian drone.
Russia and China held first military exercise since Ukraine crisis and this was a quantum step to enhance cooperation between Russia and China on defence sector. This joint exercise paved the way for further enhancement of defence ties between China and Russia. The International Army Games is an annual Russian Military sports event organized by the Ministry of Defence of Russia. The event,, which was first staged in August 2015, involved close to 30 countries taking part in dozens of competitions over two weeks in the most skilled war games. According to the Russian Ministry of Defence, the International Army Games (IAG) 2022 will be held from August 13 to 27 as scheduled, and as of now, a total of 275 teams from 37 countries and regions have confirmed their participation in this unique event. These games would be held in the territories of 12 countries including Belarus and Iran. A Chinese team comprising tanks and vehicles would attend this event.
China is a country in East Asia. It is the world’s most populous country, with a population of around 1.4 billion, covering about 9.6 million square kilometers. It is the world’s third state by area.
China is the factory of the world. In 1970 its global production contribution was only 3% now it is 25%, it is exporting to about 200 countries and producing about 80% world’s air conditioners, 70 % mobiles third-largest, 60% shoes, 74% solar sales, 60 % cement, 50% coal, 45% ship building, 50% steel, is being produced by just one country “ CHINA”. It is also astonishing that about 50% apples are produced by China while the USA, which is second in rank, only produces 7 % apples. It is now the world’s largest economy with a GDP of $ 30.8 trillion. It is also the largest exporter of the world with $ 3.6 trillion in exports. Surprisingly, 90% American flags are also manufactured in China. It is normally thought that China can only produce cheap goods, but people are highly surprised when they are told that 60% of most branded luxurious items are produced in China. In the 1970s it was poorer than African countries. In 1978, its per capita income was just $ 155 dollars while it jumped to $ 7,590, which is 49 times increased. It lifted more than 800 million people from poverty. Its mass production policies destroyed the price structure of most of the world’s famous companies and countries. It has a competitive edge over many countries due to its mass-scale production. Its workforce is highly trained, efficient, active, vibrant and experienced. China is the largest economy in the world by PPP since 2014, the world’s second-largest economy by nominal GDP since 2010, and the largest economy in Eurasia. Since the introduction of economic reforms in 1978, China’s economy has been the world’s fastest-growing major economy, with an annual growth rate consistently above 10%. According to the World Bank, China’s GDP grew $ 150 billion in 1978 to US$12.24 trillion by 2017. China also recorded the fastest rise in GDP per capita in the world from 1960 to 2018. China is the largest exporter and second second-largest importer of the world after America. One of the world’s foremost infrastructural giants China has the world’s largest bullet train network, the most super tallest skyscrapers in the world. China borders with 14 countries, more than any other country except Russia.
Russia is the largest country in the world by area, covering more than one-eighth of the world’s land area. it is the 9th most populous country with over 150 million people. Its capital Moscow, is one of, the largest cities in the world. The Russian economy ranks as the 12th largest economy by nominal GDP, and sixth largest by purchasing power parity. Russia’s extensive mineral and energy resources are the largest such reserves in the world, making it one of the world’s leading producers of oil and natural gas. The country is one of the five recognized nuclear weapon states, is a permanent member of the UN Security Council, enjoying veto power status.
Russia is a great power as well as a regional power and has been characterized as a potential superpower. It is a member of the G20, the Council of Europe, the Asia Pacific Economic Cooperation, and the World Trade Organization. It is also one of the five members of the Eurasian Economic Union.
Russia, China, and Iran's strategic alliance is the game changer in the world’s power game. They are very important countries in shaping global politics and economic development. India must revisit and revise its policy as its strategic alliance with the USA and strategy to block Chinese advancement is not in favor of regional peace and stability especially in the perspective of Russia and Iran’s strategic alliance with China. Europe and America's strategy is to block Russia and China has miserably failed.

Russia joined hands with China which is a strategic ally of Russia in arctic region. Russia China alliance is given very importance by analysts. China declared itself a near arctic state. China is only 900 km away from Arctic Circle. China is paying much intention in building more infra-structure and is building “The Polar Silk Road”. China completed 121st Arctic scientific research expedition. China is also going to build Research Centre at Svalbard Islands. The Arctic region has become a new focus of conflict between the US and China. Washington seeks to block Beijing’s activities in the region and prevent it from strengthening its presence there, in keeping with the guidance of President Joe Biden’s administration, which the session considered an extension of the policy of former US President Donald Trump. America’s military position towards Chinese activities in the Arctic, including investments, and Washington’s accusations that China is engaging in expansionist activities in the South China Sea and the Arctic via many political and economic measures. Washington is deliberately stoking disagreements between China and Russia to disrupt cooperation between them in the Arctic region because of the strategic importance of that region to the US. Russia and Canada cooperate in many areas in the Arctic, while the two countries do not agree on many other security issues. China cooperates with Russia on several Arctic issues. In July 2017, the two countries announced a joint initiative called the “Arctic Silk Road.” China was among the first countries to support shipping via the North Sea amid the Western boycott of this route. In addition, there is good military cooperation between China and Russia in the region. UAE has advanced technology in the field of oil and gas and China enjoys vast production capacity. This indicates opportunities for cooperation between the two countries in the Arctic, which has many investment opportunities in the energy sector. Hard-rock mining is also well developed, especially in Russia, where the former Soviet government’s desire for national self-sufficiency provided a compelling spur.The major centers are located around Murmansk  and Norilsk. The only significant source of diamonds in Russia is in Sakha. There is also gold, tin, nickel, copper, platinum, and cobalt, together with iron ore, coal, and apatite. All these are being worked. For the first four, the north provides probably the largest sources in the country. There is some mining in Alaska and Arctic Canada, especially of lead-zinc, but it is not such a significant addition to national resources as in Russia.
Geopolitical changes in the Arctic region are increasing, but they will not lead to war or confrontation between the different powers in the region because it is an important strategic region for Russia, which depends on the region in all its future planning. Likewise, climate change and global warming are increasing the importance of the region in terms of work, living, and investment. It could be called the “new Arctic civilization.”
There are many aspects that indicate that Russia and China are emerging powers and no county can ignore them. It is therefore advised to the policy makers of Pakistan that besides having strategic ties with China , relations with Russia must also be given due importance and should not be ignored. It is in the larger interests of Pakistan that we may join hands wherever we have the commonality of interests with Russia. The sanctions imposed by western countries and USA affecting negatively to European countries and failed to bring the desired results. Pakistan should move towards technology transfer from Russia and needs to start meaningful negotiation to get Russian help in resolving its energy crisis.
 

Dr Syed Mehboob
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