Friday, June 27, 2025

Iran, What a Pathetic State!

Iran got whacked, again!

Israel has been assaulting Iran with little impunity all these years[i]. But the last round was a gang-rape!

We all know the developments but just let me recap a little. On June 13, Israel carried out an attack – Operation Rising Lion – on Iran, while the US was still talking to the Iranians. The attack inflicted deaths and destruction of military sites and commercial and residential buildings. The elimination of several senior military figures and nuclear scientists was particularly painful to Iran[ii].

The operation involved some 200 aircraft. The precision with which the strikes were carried pointed to one thing: Iran’s establishments have been totally penetrated by Mossad.

Iran retaliated and has launched barrages of ballistic missiles and drones at Israel. Some serious damage was inflicted. And the first time, Israel felt vulnerable; even its Iron Dome showed cracks. They needed the US to come in.

Trump’s response reinforces world opinion that he is one leader that no one should trust. On June 19, 2025, Trump declared that he would decide in two weeks whether to launch U.S. strikes on Iran on the pretext of his preparation to give diplomacy a final chance. However, by June 21, the U.S. military conducted coordinated airstrikes on three of Iran's key nuclear sites—Fordow, Natanz, and Isfahan – using B-2 stealth bombers and Tomahawk missiles. Obviously, this required extensive logistics support, and the attack must have been planned well in advance.

In his national address following the strikes, Trump crowed in the usual hyperbolic fashion that the operation was a "spectacular military success" and warned Iran against retaliation, stating that any further aggression would be met with even greater force.

Iran responded chiefly with the usual condemnations and the public demonstration of “Iran will never surrender” defiance, but these were largely meek. It did launch missile and drone attacks at some Israeli cities and in an “Ah Q[iii]” fashion, informed the US before it fired at the latter’s military base in Qatar. Of course, no damage was really intended.  

Iran soon capitulated and agreed to submit to US pressure to sue for peace. Israel was happy to go along, since their military inventories are also running low.

The international community is already too used to Israeli attacks on the underdogs in the Middle East, but for the US to stage such a pre-emptive on a victim is another matter. U.N. Secretary-General António Guterres courageously described the U.S. strikes as a "dangerous escalation" and called for restraint.

Much debate is now centred around the extent of damage the US’s cluster bombs have caused to Iran’s nuclear sites. Trump claimed complete obliteration, but many believe that the US attack has only set back Iran’s nuclear programme by a couple of months, since the enriched stuff must have already been taken out.

What does Iran think of Itself?

We all know that the Israelis are all determined to create a solid Israel that is devoid of Palestinians in Gaza and the West Bank, which it is conducting a genocidal campaign in Gaza now. It is even contemplating of annexing some parts of Syria.

Amongst its immediate or near neighbours, Turkey and Saudi Arabia are too strong or for it to bully. Jordan is a client state of the US. Syria is a lost child. Iraq is too messy to get into. And it is constantly disturbed by the Hezbollah in Lebanon and the Houthis in Yemen; they are seen to be proxies of Iran. Geo-strategically, Israel thinks they must cow Iran, come what not!


We all dislike Donald Trump. Many are relieved that the US strikes have not really inflicted too serious a damage to Iran’s nuclear sites. But does it matter?

For years, we had been hearing Iran’s uranium enrichment efforts and had been repeatedly told that they were “almost there” many times. Just before the strike, the head of US National Intelligence Tulsi Gabbard courted the wrath of Trump by saying that there was no evidence to suggest that Iran had nuclear bombs. This is a little like what happened in Iraq’s Weapons of Mass Destruction allegation which led to the Iraq war in 2003.

Iran has been actively building nuclear power plants as part of its strategy to expand its nuclear energy capacity. Its Bushehr Nuclear Power Plant is the sole operational nuclear power facility in Iran. The plant became live in 2011 with Russian assistance. Construction of the second unit commenced in November 2019 and plans for a third unit are underway. In June 2025, Iran and Russia signed a contract for the construction of eight nuclear power plants in Iran, with four planned in the Bushehr region. Iran aims to produce 20,000 megawatts of nuclear energy by 2041.

Surely, they need to enrich uranium to run these plants.

But Israel and the US do not buy the Iranian explanation; they see the ghost of nuclear bombs in Iran enrichment facilities.

The Persians are a very clever people; making nuclear bombs is not a formidable mission. Iran has signed the Nuclear Non-Proliferation Treaty (NPT) and are happy to be generally abided by its governance only to see the 2015 Joint Comprehensive Plan of Action (JCPOA) reneged by Trump in 2018[i]. Yes, Iran has defied the International Atomic Energy Agency from time to time. Who wouldn’t? If you had been following its director general Rafael Mariano Grossi’s actions and speeches, you would certainly come to this conclusion: Grossi is no honest broker!

Israel just wants to subdue Iran for good. Period.

Israel has nuclear weapons, so has North Korea. You need to have a godfather behind you. Iran does not have one.

I suspect the Iranian clerics are too dumb to understand geopolitics and geo-strategy. They might harbour the delusion that they can stand as equal to the powers of the day.

However, you can discern a certain behavioural phenomenon amongst the ordinary Iranians. They would scream for revenge each time Israel inflicted wounds on them but only to allow time to take care of the problem. Their Hezbollah and Houthis disciples are braver than them.

Maybe we can gain some insights of this phenomenon by looking at its history.

The Persian civilization[iv] and Islamisation

The Persian civilisation is one of the oldest continuous civilizations in the world, with roots going back over 4,000 years. They already had writing, architecture and complex state structures in the Elamite period.

The Median Empire (~678–550 BCE) set the stage for Persian imperial expansion, followed by the Achaemenid Empire (550–330 BCE) which was founded Cyrus the Great. It was considered the first global empire in history. At its height, it stretched from the Indus Valley to the Balkans. Several lesser empires followed.

Despite the various invasions – by Greeks, Arabs and Mongols, the Persian language, identity and cultural legacy have largely endured. Modern Iran still draws deeply from its ancient Persian heritage – visible in language (modern Persian), art, architecture, festivals, and national identity.

However, the original religion of the Persian people was Zoroastrianism, founded around 1200–1000 BCE. Fire is a symbol of purity and divine light in their belief. Concepts like heaven, hell, judgment, free will, and the coming of a saviour predate similar ideas in Judaism, Christianity, and Islam.

     When did Iran become Islamic?

The Arab-Muslim conquest of Persia began in 633 CE. Persia was absorbed into the expanding Rashidun Caliphate. However, conversion was gradual, not forced at large scale. Many Persians retained Zoroastrianism for centuries. Be that as it may, by the 9th–10th centuries, Islam had become the dominant religion.

 

Rise of Shi'a Islam:

Initially, Sunni Islam was dominant. In 1501, the Safavid dynasty declared Twelver Shi’a Islam the state religion, making Iran the centre of Shi’a Islam – a distinction it still holds today.

 

Zoroastrianism still survives today, especially among small communities in Iran and India (known as Parsis).

 

60% of the Iranian population is Persian. The next major ethnicity is Azerbaijanis (16-20%) and many Iranian clerics belong to the latter.

 

Came the British

In the19th century, Britain and Russia competed for influence in Persia to control trade routes and access to India. Britain pressured Persia on borders, trade, and military decisions. Persia lost territory and sovereignty to both powers.

 

Britain fought Persia in 1856 to stop its invasion of Herat (in modern Afghanistan). The Treaty of Paris (1857) forced Persia to give up claims to Afghanistan.

 

In 1901, British investor William D’Arcy secured rights to Iran's oil, which led to the formation of the Anglo-Persian Oil Company (later BP), which dominated Iranian oil for decades.

 

In 1907, Britain and Russia divided Iran into spheres of influence without Iranian consent: North: Russian control; South: British control; and Centre: Neutral

Iran was effectively a semi-colonial state, although still officially independent.

 

In World War I (1914–1918), Iran declared neutrality but was occupied by British, Russian, and Ottoman forces. British forces stayed in parts of Iran post-war.

 

In a coup believed to be backed by Britain in1921 Reza Khan (later Reza Shah) seized power.

 

In World War II (1941), Britain and the Soviet Union invaded Iran to secure oil fields and supply lines to the USSR. Reza Shah was forced to abdicate and replaced by his son, Mohammad Reza Pahlavi.

 

In 1951, Iranian Prime Minister Mohammad Mossadegh nationalized British oil assets. But in a 1953 coup, Britain and the U.S. organized Operation Ajax to overthrow Mossadegh and restored the Shah.

 

(Mohammad Mossadegh (1882–1967), famed for integrity, nationalism, and opposition to foreign control of Iran, was born in 1882 into a well-connected aristocratic family in Tehran. He was educated in France and Switzerland, earning a Ph.D. in law. He became Prime Minister in 1951, at a time when the Iranian people were furious that their vast oil wealth was controlled by the British-owned Anglo-Iranian Oil Company (AIOC) (now BP). After the coup, Mossadegh was arrested, tried for treason, and placed under house arrest until his death in 1967.)

 

After being restored to full power, Shah Mohammad Reza Pahlavi became increasingly autocratic. The coup is widely seen as a turning point in modern Iranian history, fuelling deep anti-Western resentment. Iranians view Mossadegh as a national hero and a symbol of resistance to imperialism.

 

Shah Mohammad Reza Pahlavi’s reign

Reza Pahlavi ruled from 1941 to 1979. His father was forced to abdicate by Britain and the Soviet Union during World War II for being too close to Nazi Germany.

 

Iran was still a constitutional monarchy in the 1940s–50s. However, Reza Pahlavi clashed with the Iranian parliament and prime ministers. His power was weakened greatly during the premiership of Mohammad Mossadegh. After Mossadegh nationalized oil, the Shah briefly fled Iran. After the 1953 coup, he ruled as an absolute monarch.

 

He launched the so-called White Revolution in 1963 which was supposed to modernize land reform, bring about women's suffrage and education expansion. However, he was autocratic and through SAVAK, the secret police, suppressed opposition. His westernization mindset alienated conservative religious elements and rural population. There was much inequality in oil wealth; rapid development widened the gap between rich and poor.

 

The clerics took over

Mass protests began in 1978 and spread nationwide. The army declared neutrality and the Shah fled in 1979. Ayatollah Ruhollah Khomeini, who was in exiled in 1964 in France returned to a massive welcome. The Islamic Republic of Iran was born. The Shah of Iran died in exile 1980, in Cairo, Egypt.

IRAN TODAY…

Ethnic diversity of Iranians

Iran is a multi-ethnic country with a rich and diverse cultural landscape. While Persians form the largest ethnic group (60-65%), several other groups make up significant portions of the population, significantly the Turkish-speaking Azeris (Azerbaijanis) (16-20%) and Kurds (7-10%)

 

Leadership

The Supreme Leader is 86-year-old Ayatollah Ali Khamenei, who has held this position since 1989, making him the longest-serving head of state in the Middle East.

 

Khamenei’s father was from the Azerbaini community – a Turkish-speaking ethnic minority – while his mother was an ethnic Persian. Despite his mixed background, Khamenei has been a central figure in shaping Iran’s political and religious landscape, particularly through his advocacy of the principle of Velāyat-e Faqīh (guardianship of the Islamic jurist), which underpins Iran's theocratic governance.

 

The President Masoud Pezeshkian took office on 28 July 2024 following the death of former president Ebrahim Raisi in a helicopter crash. Masoud Pezeshkian is 71; his father was Azerbaijani, and his mother Kurdish. This diverse heritage is said to have contributed to his appeal across various ethnic groups in Iran.


Pezeshkian is regarded as the most reform-oriented president since Mohammad Khatami (1997–2005). However, despite his reformist stance, he is expected to operate within the constraints set by Iran’s conservative political establishment.

Top of Form

Why is Iran so pathetic?

Much can be discerned from these historical and cultural characteristics. Persians are not a warrior race. From the history of their skirmishes with the Israelis, there is a pattern: they capitulated easily.

For this 12-day war, it was apparent to many observers that Israel was also struggling to sustain their strikes for too long a time. So, when Trump asked them to cease, they were happy to oblige, knowing that they could leave it to the US to do the dirty job. I do not buy the conspiracy theory that they had indeed achieved an advantage in this 12-day war.  

I see Iran as a country that has been totally infiltrated by Mossad and the other branches of Israeli Intelligence, right to the highest echelon of their military and political establishments. I do not think they can even do any house-cleaning themselves.

Although it is an old civilisation, today’s Persians have ended up with Shi’ism – religious inertia rather than cultural pride. They are quick to capitulate; there is not much “warrior” trait their DNA.

They are Aryans and consider themselves “European” or white rather than Asian. Azerbaijanis, though linguistically Turkic, are also Caucasians. Intuitively, they do not think Chinese are worthy to be their geopolitical or geostrategic godfather. They prefer Russia, but Russia and Iran are actually competitors – for regional influence and oil and gas markets.

And in the region, they are very much a lone ranger. Being Shias, they are not close to the Sunni Arabs. Saudi Arabia severed ties with Iran after its embassy in Tehran was attacked over the execution of a Shia cleric in 2016. It is not until March 10, 2023 that Saudi Arabia and Iran agreed to restore diplomatic relations – following series of negotiations mediated by China in Beijing. The deal included the reactivation of a 2001 security cooperation agreement and a 1998 pact on trade, investment, and cultural cooperation. However, relationship between the two worlds is still lukewarm at best. Iran is therefore quite a lone ranger in the Middle East.

They signed a 25-year comprehensive strategic partnership agreement with China in 2021 to deepen cooperation in economy, energy, infrastructure, military, etc between the two nations[iii]. But little has progressed.

While Pakistan was quick to acquire J-10C and associated air defence systems from the Chinese, which have saved them from humiliation by the Indians, Iran has never shown any interest in Chinese military gears. Its air force is hardly existent and can only rely on their missiles and drones to defend themselves. But these alone will not save them from being stripped naked by the US and Israel.

In heart, clerical rule is only being tolerated since the Iranians are Muslim. Basically, it is the clerics and the conservatives who are against Israel; many Iranians are quite ambivalent about the Jews and most of them yearn for the US-style democracy.

Iran is a very important jig-saw puzzle piece in China’s Road & Belt Initiative. It therefore cannot afford to allow Iran to be another US client state. Also, the Suez Canal is all too important for China. Fortunately, it has Egypt to count on to ward off the US ghost there.

A wishful thought: If I can decide for the Iranians…

I will take a leaf each from Kim Jong Un and Pakistan’s books. Quit NPT and go ahead to make the bomb. You do not even have to enrich uranium yourselves; just pay Kim to do it for you. Once done, hang it out in your missile for the Israel and the US to see. At the same time, go back to the Chinese to pledge your trust in them, acquire their J-20 or J-35 and their air defence systems.

(Or maybe they should not be thinking of making nuclear bombs, since nobody in his sane mind can afford to hurl one in the neighbourhood!)

And do not forget to ask the clerics to return to where they belong.

Isn’t Saudi’s Mohammed bin Salman adopting a similar ought strategy now?

And do not get involved in silly regional politics, just go ahead to develop your economy with the brains and resources that you have.

I bet the US and Israel will have to leave you alone after that.

End



[i]         The following are some of the major strikes against Iran and its allies:

2019 – Israel carried out a series of attacks in Syria, Lebanon and Iraq to prevent Iran from equipping its allies with sophisticated weapons. Israel accused Iran of trying to establish an arms supply line through Iraq and northern Syria into Lebanon, where Iran had long backed the militant group Hezbollah. Israel also attacked ships carrying Iranian oil and weapons through the eastern Mediterranean and Red Seas.


2020 – Israel killed Iran’s top nuclear scientist Mohsen Fakhrizadeh, with a remote-controlled machine gun. In retaliation for Israeli operations that targeted key Iranian figures, including Hamas leader Ismail Haniyeh and Hezbollah leader Hassan Nasrallah, Iran launched a missile attack on Israel in October 2024. 181 missiles were fired, which Israel's air defence systems largely intercepted.


2021 – The Israeli prime minister Benjamin Netanyahu accused Iran of being behind a February explosion on an Israeli-owned ship transporting vehicles sailing off the coast of Oman. Iran accused Israel in March of targeting an Iranian cargo ship about 50 miles off the coast of Israel. In April, an Iranian military vessel stationed in the Red Sea was damaged by an apparent Israel mine attack. Such operations continued through the year.


2022 – In May, two assassins on motorcycles shot and killed Col Sayad Khodayee, an officer in Iran’s Islamic Revolutionary Guards Corps. Israeli officials said he helped command a covert operations unit that conducted assassinations and abductions.

 

Also, Ayoub Entezari, an aeronautical engineer at a military research facility, and Kamran Aghamolaei, a geologist, died in May after developing symptoms of food poisoning. 


2023 – In October, Palestinian militants led by Hamas attacked Israel, igniting a deadly war in Gaza. In solidarity with Hamas, other Iranian-backed militias in the region, including Hezbollah in Lebanon and the Houthis in Yemen, also attacked Israel. Iran’s supreme leader, Ayatollah Ali Khamenei, denied that Iran had any role in the attacks. In December, Israel launched a missile attack in Syria, killing a high-level Iranian officer.


2024 – In April, Israel struck the Iranian Embassy in Damascus

A strike on Damascus, killing three top Iranian commanders and four officers. Weeks later, Tehran launched more than 300 drones and missiles at Israel, nearly all of which were shot down. Soon after, Israel attacked an anti-aircraft system in Iran that protects a nuclear facility.

 

In July, Ismail Haniyeh, Hamas’s political leader, was assassinated in an explosion in a guesthouse in Tehran run by the Islamic Revolutionary Guard Corps.


In September, Iran’s ambassador to Lebanon, Mojtaba Amini, lost an eye in a massive simultaneous pager attack targeting Hezbollah members. Similar attacks on electronic devices followed in subsequent days, killing dozens of people and injuring thousands. Israel later confirmed it conduced the attacks.

In September, Israel killed Hezbollah’s leader, Hassan Nasrallah, in airstrikes near Beirut, Lebanon’s capital.

 

In October, Iran fired about 180 ballistic missiles at Israel, in retaliation for Israel’s assassinations of Nasrallah, Haniyeh and an Iranian commander. Most were intercepted.

 

Israel retaliated by launching airstrikes on Iran later that month. The strikes destroyed air-defence systems intended to protect Iran’s critical infrastructure.

 

Israel claimed that the airstrikes in April and October took out air-defence systems that Iran purchased from Russia, including one in central Iran that is critical to the country’s nuclear program.


2025 – Netanyahu proposed to President Trump a plan to strike Iranian nuclear sites, which Trump administration debated for months. In April, Trump decided to pursue diplomacy instead. Iran rejected the administration’s demand to stop all uranium enrichment, but talks about its nuclear program are set to continue.


On June 12, Trump said there was a risk Israel could strike Iran, torpedoing the talks. “I think it would blow it,” he said, adding, it “might help it actually, but it could also blow it.”

                                                                        (Source NYT)

  

[ii]        Military Figures Killed:

·       Major General Mohammad Bagheri – Chief of the General Staff of the Iranian Armed Forces

·       Major General Hossein Salami – Commander-in-Chief of the Islamic Revolutionary Guard Corps (IRGC)

·       Major General Gholam Ali Rashid – Commander of the Khatam-al Anbiya Central Headquarters

·       Brigadier General Amir Ali Hajizadeh – Commander of the IRGC Aerospace Force

·       Brigadier General Davoud Shaykhian – Commander of the IRGC Air Defence Unit

·       Brigadier General Taher Pour – Commander of the IRGC Drone Unit

    Additionally, on June 15, Israeli airstrikes in Tehran killed:

·       Brigadier General Mohammad Kazemi – Head of the IRGC Intelligence Organization

·       Brigadier General Hassan Mohaqeq – Deputy Head of the IRGC Intelligence Organization

 

Nuclear Scientists Killed:

·       Mohammad Mehdi Tehranchi – Theoretical physicist and president of Islamic Azad University

·       Fereydoun Abbasi-Davani – Former head of Iran’s Atomic Energy Organization

·       Saeed Borji

§       Seyyed Amir Hossein Faqhi

§        Akbar Motabizadeh

                                                                        (Source: ChatGPT)


[iii]        A fictional character in a Lu Xun novelette - someone who has flawed human character, such as cowardice, misplaced self-esteem, etc.


[iv]      Iran signed the NPT in 1968 and ratified it in 1970. As a non-nuclear weapon state, it was treaty-bound not to develop nuclear weapons and to accept International Atomic Energy Agency (IAEA)’s safeguards to verify that its nuclear program is for peaceful purposes. However, over the years, its nuclear activities have raised international concerns, leading to investigations by the IAEA and the imposition of UN and international sanctions.

 

In 2015, Iran entered into the Joint Comprehensive Plan of Action (JCPOA) with world powers (U.S., UK, France, Russia, China, and Germany) to limit its nuclear program in exchange for sanctions relief.

 

President Donald Trump officially withdrew the United States from the Iran nuclear deal on May 8, 2018.

 

The US reimposed harsh economic sanctions were reinstated in phases from 2018 through 2019. It also targeted Iran’s banking, oil, shipping, and military sectors. The action is aimed at maximizing pressure to force Iran back to the table for a more palatable deal to the US.

 

Notwithstanding, Iran remains a party to the NPT.

                                                                        (Source: ChatGPT)

(

[v]       The Persian civilisation is one of the oldest continuous civilizations in the world, with roots going back over 4,000 years:

1. Elamite Civilization (~2700 BCE – 539 BCE)

·       Located in what is now southwestern Iran.

·       One of the earliest pre-Iranian civilizations.

·       Had writing, architecture, and complex state structures.

·       Capital: Susa (a major city even during later Persian empires).

 

2. Arrival of the Indo-Iranians (~2000–1500 BCE)

·       Tribes including the Medes and Persians migrated into the Iranian plateau.

·       Brought the Indo-Iranian language and culture, from which Old Persian and Avestan (Zoroastrian texts) developed.


3. Median Empire (~678–550 BCE)

·       First Iranian empire to unite parts of western and northern Iran.

·       Set the stage for Persian imperial expansion.

 

4. Achaemenid Empire (550–330 BCE)

·       Founded by Cyrus the Great.

·       Considered the first Persian Empire and the first global empire in history.

·       At its height, it stretched from the Indus Valley to the Balkans.

·       Notable for innovations in administration, infrastructure, and human rights (e.g., Cyrus Cylinder).

·       Capital cities: Persepolis, Susa, Ecbatana.

 

5. Subsequent Persian Empires:

·       Parthian Empire (247 BCE – 224 CE)

·       Sassanian Empire (224–651 CE): last great pre-Islamic Persian empire.

·       Safavid, Afsharid, Qajar, and Pahlavi dynasties continued the Persian identity post-Islam.

 

Despite the various invasions – by Greeks, Arabs and Mongols, the Persian language, identity and cultural legacy have largely endured. Modern Iran still draws deeply from its ancient Persian heritage – visible in language (modern Persian), art, architecture, festivals, and national identity.

 

The original religion of the Persian people was Zoroastrianism, one of the world’s oldest monotheistic religions, founded by the prophet Zoroaster (Zarathustra), likely around 1200–1000 BCE (some scholars suggest even earlier). The key beliefs of Zoroastrianism are:

·       One God: Ahura Mazda (Wise Lord)

·       Duality of Good and Evil: Life is a moral struggle between Asha (truth/order) and Druj (falsehood/chaos).

·       Fire is a symbol of purity and divine light (Zoroastrian temples often keep a sacred flame burning).

·       Concepts like heaven, hell, judgment, free will, and the coming of a saviour predate similar ideas in Judaism, Christianity, and Islam.

                                                                        (Source: ChatGPT)


[vi]       The Iran–China Comprehensive Strategic Partnership is a 25-year cooperation agreement signed in March 2021. The purpose is to deepen cooperation in economy, energy, infrastructure, military, etc between the two nations. In the agreement, China commits to long-term purchase of Iranian oil and gas at discounted prices. China gains priority access to energy projects, including development of oilfields, refineries, and gas infrastructure. Iran benefits from a reliable market amid Western sanctions. China is to invest up to $400 billion in Ports (e.g., Chabahar and Jask), Railways and highways (linking Iran to Belt and Road Initiative (BRI)), Telecommunications, airports, and metro systems. Both countries will cooperate on 5G networks, cybersecurity, and smart city infrastructure, Huawei and other Chinese firms may be involved in tech rollout. In Banking & Finance, plans to use local currencies or non-dollar systems to bypass U.S. sanctions. Potential for creation of alternative financial systems (e.g., blockchain, digital yuan). And in Military and Security, both nations are to hold joint military drills, share intelligence and cooperate in counterterrorism. Other provisions include access for Chinese military vessels to Iranian ports and weapons development and training exchanges.

                                                                                       (Source: ChatGPT)

 




Sunday, June 8, 2025

Another Exercise in Self-Harm

Little has been reported about a recent US export licence restriction of ethane to China.

On June 3, the US Department of Commerce’s Bureau of Industry and Security (BIS) announced the denial of export licence for three ethane cargoes totally to China – a consequence of a May 23 BIS determination that high-purity ethane exports to China pose a national security risk.

 Ethane is an important feedstock for China’s petrochemical industry. The restriction does look menacing, but I believe it is not as what the US has hope to achieve.

The ethane export curb is another US exercise in self-harm, which is similar to what the US is doing to the semiconductor industry in China. The latter simply makes China more self-reliant and renders companies like Intel and Nvidia losing billions of dollars of sales.

No sooner had China and the US concluded a trade war truce in Geneva on May 12 then this BIS restriction was announced. This is typical Trump – a habitual way of undermining his own credibility. Trump began to rant that China had violated the understanding reached in the Geneva talks. Of course, it was a load of rubbish and China was quick to point out.

What the US had wanted was China’s rare earths. And what China wanted was the US’s undertaking to leave Taiwan alone. But the US is obviously not delivering their side of the bargain. China is, I believe, all prepared to concede much of what the US wants if the latter commits not to interfere with China’s reunification efforts on Taiwan. However, Pete Hegseth’s 31 May speech at the 2025 Shangri dialogue in Singapore must have irked China a great deal. Not again, says China.

In its distorted logic, the US began to dial back its Geneva undertakings, and the ethane export curb is its new salvo.

There is no doubt that the loss of U.S. ethane will hurt China's petrochemical producers. (China has exempted ethane from its earlier reciprocal 125% tariff on U.S. imports.) The curb cuts both ways.

According to an article by Reuters energy columnist Ron Bousso, China absorbs nearly half of all US ethane exports in 2024. If it persists, the viability of weaker producers in the US shale basins will also be at stake. Rejecting this natural gas liquids export also equates to additional volume that has to go back to the US gas stream, which the US consumers do not need. 

It is reported that ethane production in the US rose to a record 2.83 million bpd in 2024 and is currently the only major exporter of ethane, as exports rose 13-fold in the decade to 2024 to 492,000 bpd, 46% of which went to China, according to the EIA. Other markets for U.S. ethane exports are India and Thailand, but the shift will not happen quickly. It takes years to build import terminals and ethane carriers.

For China, losing the U.S. ethane feedstock will mean that it needs to rely more on naphtha, which is a pricier feedstock. But this is not a life-threatening blow to China.

I asked ChatGPT to give its takes on the issue. Below is a summary of what it says:

China would need to diversify its ethane import sources. But due to the specialised infrastructure needed for extraction liquefaction, transport and regasification, alternatives are quite limited.

 

  • Qatar and Saudi Arabia are possibilities; however, much of their ethane is needed domestically for their own petrochemical production.

 

  • Norway produces small volumes of ethane, but they are meant for European demand.

 

  • Canada has significant ethane resources, especially in Alberta. However, it currently lacks large-scale ethane export infrastructure.

 

  • Brazil exports a small amount of ethane as a byproduct from its pre-salt gas fields, though this is currently not in large volume.

 

  • Russia has large natural gas reserves, and some ethane production capacity. But now it has limited liquefied ethane export infrastructure.

But I suspect this curb is going to be another TACO event.

We all know on June 5, President Xi Jinping took a phone call from U.S. President Donald J. Trump. Trump has been desperate to speak with Xi for some weeks already. He thought he could win a trade war with China. Obviously, he had been badly advised by a bunch of nincompoops who did not understand the complexity of international trade, especially in supply chains. But never mind the shelves in Walmart are going to be empty in a couple of weeks’ time, never mind the cost of the US’s national debt is going to shoot through the roof, and never mind Elon Musk has walked out, one thing is totally unbearable to him: China’s denial of rare earths to the US.

Without rare earths, the production of the critical industries – automotive, military hardware and semi-conductors, etc in the US will soon come to a standstill.

We do not know what had actually transpired between Xi and Trump during their one-and-a-half-hour talk. Trump was as usual very exuberant about the outcome; however, China’s readout was business-like and centred around its very core interest, i.e., Taiwan.

In their June 5 telephone conversation, Xi has again reminded Trump that the US must handle the Taiwan question with, I quote from its official readout, “prudence, so that the fringe separatists bent on “Taiwan independence” will not be able to drag China and the US into the dangerous terrain of confrontation and even conflict.”

I do not believe this has sunk into Trump completely.

They have agreed that their officials will meet in London on June 9 to reach a good trade agreement. However, I think it is going to be another round of empty undertakings by the US.

China should continue to use the rare earths to hit the US hard, especially when the country is already in the stage of self-imploding. The other weapon that China should use to leverage is their monopoly in the pharmaceutical ingredients. Let Trump bring the US to a grinding halt.

End