China has been buying lots of gold. China has been making deals with every superpower except the US to deal with these countries in their own currencies. Ad while China as an economic power is collapsing it is clearly not intending to stay depressed very long.
In order to recover China has to have access to oil and Iran has plenty of it. Iran like China has made agreements with other Nations to exclude the dollar from their trades. Bartering with gold if need be or to accept payment in currencies other than the current reserve currency the US dollar making the position of the US dollar as the reserve currency very precarious to say the least.
And now to heap insult on injury China has announced it won’t partake in the demonisation of Iran and will continue to do business with it.
In an article published by the Chinese daily, Global Times, Charles Gray said Washington’s “decision against granting China an exemption from the US sanctions that are set to be put in place against importers of Iranian oil … [is] nothing less than insane.”
“These sanctions, authorized by the National Defense Authorization Act (NDAA) for the fiscal year 2012, are targeted at nations that continue to import Iranian oil and have not satisfied the US government that they have taken steps to reduce their importation of that oil,” he added.
The analyst noted that US demand on other countries to stop importing Iran’s oil or face US penalties is “offensive to many nations” because the NDAA “essentially extends US sovereignty to every nation named in it.”
“It is unlikely that the Chinese government wants to be seen as surrendering to these US demands. Such an action would certainly infuriate Chinese public opinion in the short term, and make further diplomatic work with the US more difficult in the long term,” he added.
Gray stated that the US law has been essentially designed to tell Beijing “that it will be the US not China that will determine when and how Chinese financial institutions may spend their currency.”