Iran's recent invitation to Chinese oil companies and banks to invest $43 billion in Iran's oil industry was understandably dismaying to U.S. policymakers. After all, Tehran is attempting to trade access to its abundant oil and natural gas reserves for diplomatic support on its uranium enrichment program, and China's growing appetite for energy makes it vulnerable to such temptations.
Iran, however, might find that taking diplomatic advantage of China's energy needs is easier said than done. Not only are China's national oil companies unable or unwilling to deliver the projects Iran is hoping for, but energy is just one of several competing interests that drive Beijing's stance toward Tehran. As a result, Washington still has an opportunity to influence China's Iran policy.
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