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How China's Iran-Saudi Diplomacy Stunned The World — Starting With Washington

The move is seen as a coup for China in its efforts to assert itself as a global superpower, while also presenting itself as a responsible and peaceful nation in the eyes of the non-Western world. The agreement is expected to help reduce tensions in the region and revive hopes for peace in Yemen, where the two countries have been fighting a proxy war.

Photo of Crown Prince of Saudi Arabia Mohammad bin Salman Chinese President Xi Jinping shaking hands.

A 2016 file photo of Crown Prince of Saudi Arabia Mohammad bin Salman and Chinese President Xi Jinping.

Pierre Haski


PARIS — There is the agreement itself, and there are the circumstances surrounding the agreement. Saudi Arabia and Iran had severed diplomatic ties in 2016 after the execution of a Saudi Shiite leader. The restoration of relations between these two rival Middle East powers is therefore no small feat.

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But even more intriguing, more spectacular, and totally unexpected is the role played by China. For it was in Beijing that Friday's agreement was signed. The photo of China's top diplomat, State Councillor Wang Yi, surrounded by the Saudi and Iranian ministers, in front of a large Chinese painting in Beijing, attests to a world that has suddenly changed.

This is undoubtedly the first time that China has taken on the role of mediator in the Middle East, a stance that has electrified the region and beyond since the announcement of the agreement.

Among the most shocked is the United States, once the exclusive protector of Saudi Arabia, and Israel, which had been slowly shaping its relationship with Riyadh toward a shared stance against Iran and its nuclear ambitions.

Raisi in Beijing

For Beijing, in the midst of a new cold war with the United States, this is a diplomatic coup: China displays both its superpower status in an area where it was not expected, and presents itself as a responsible and peaceful nation, which is good for its image in the non-Western world.

The real role played by China in the negotiations is unknown, beyond providing the framework for the final stage, that of the signature. But what is interesting is to understand why both Iran and Saudi Arabia accepted this Chinese sponsorship. Each has its own reasons.

Iran, under U.S. sanctions, is emerging from its isolation and forging closer ties with Russia and China. The rapprochement with Moscow was manifested by the delivery of drones used against Ukraine. But not enough attention was paid to the visit of Iranian President Ebrahim Raisi to Beijing last month, a prelude to this agreement.

Photo of Musaad bin Mohammed Al-Aiban (L), Saudi Arabia's Minister of State, Wang Yi (C), director of the Office of the Foreign Affairs Commission of the CPC Central Committee and Admiral Ali Shamkhani (R), Secretary of the Supreme National Security Council of Iran, in Beijing on March 10, 2023.

Top diplomats of Saudi Arabia, China and Iran for the signing ceremony in Beijing on March 10, 2023.

Luo Xiaoguang via ZUMA Press

Shuffling of cards

For its part, Saudi Arabia has been playing a more subtle game since the beginning of the war in Ukraine. It has emancipated itself from American tutelage, refusing Joe Biden's request to increase oil quotas, before the surprise rolling out the red carpet for Xi Jinping.

The Chinese leader was certain to be the first to shake hands with Crown Prince Mohammed bin Salman when Westerners were boycotting him after the assassination of journalist Jamal Khashoggi. But there is also a more lasting reshuffling of cards, linked to the mid-sized powers on the planet.

What does this agreement change? It reduces tension between these two countries, which have been on the brink of war more than once. Its first effect should be to revive hopes for peace in Yemen, where Saudi Arabia and Iran have been waging a proxy war.

Iran should also abandon its threats to its neighbor, such as when it bombed oil installations in 2019.

But what about Iran's nuclear program, which is dangerously close to the critical threshold of uranium enrichment? And what about other fronts of Iranian activity in the region, Iraq, Syria, Lebanon...?

The agreement raises as many questions as answers it provides. But it has achieved its first objective: to surprise, and to signify to the West that the world has changed.

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How A Xi Jinping Dinner In San Francisco May Have Sealed Mastercard's Arrival In China

The credit giant becomes only the second player after American Express to be allowed to set up a bank card-clearing RMB operation in mainland China.

Photo of a hand holding a phone displaying an Union Pay logo, with a Mastercard VISA logo in the background of the photo.

Mastercard has just been granted a bank card clearing license in China.

Liu Qianshan


It appears that one of the biggest beneficiaries from Chinese President Xi Jinping's visit to San Francisco was Mastercard.

The U.S. credit card giant has since secured eagerly anticipated approval to expand in China's massive financial sector, having finally obtained long sought approval from China's central bank and financial regulatory authorities to initiate a bank card business in China through its joint venture with its new Chinese partner.

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Through a joint venture in China between Mastercard and China's NetsUnion Clearing Corporation, dubbed Mastercard NUCC, it has officially entered mainland China as an RMB currency clearing organization. It's only the second foreign business of its kind to do so following American Express in 2020.

The Wall Street Journal has reported that the development is linked to Chinese President Xi Jinping's meeting on Nov. 15 with U.S. President Joe Biden in San Francisco, part of a two-day visit that also included dinner that Xi had with U.S. business executives.

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