Tipsheet

Here's Why The Situation In Iran is Looking Disastrous For China

Patrick Bet David, an entrepreneur and host of the “Patrick Bet David Podcast,” explained in a recent episode that China is beginning to get desperate after it was revealed Tuesday that an Iranian vessel seized by United States Marines was carrying dual-use chemicals and other equipment used to build ballistic missiles. 

He argued that the war in Iran, which has forced the Strait of Hormuz closed, alongside the United States’ operations in Venezuela and a Panama Supreme Court ruling restricting Chinese access to the Panama Canal, has severely degraded Chinese influence over the Western Hemisphere, on top of denying them a significant percentage of their oil supply. 

He added that China's attempt to aid Iran may be an effort to test the waters and see what it can get away with, as President Trump continues to reassert American strength globally.

"Are you surprised, though, with China? Bet David said. "I don't know if I'm surprised. I don't know if I'm sitting there saying I'm surprised with them doing this."

But the reality of it is: Look what we've done to China. Just think what's happened, what America's done to China the last 12 months. So you were getting your stuff from Venezuela. That's gone. That discount is gone. You were getting what percentage of your oil out of Iran? I don't know what the number is. It's a massive number, okay. And so now that's been locked up. You're not happy about that, and they were giving it to you as a discount. CK Hutchison is who owns Panama Canal, the 43 ports, whatever it is, two or three of them that are the main ones in Panama on both sides. Now you mean to tell me you lost that because the Panama government said you don't have any jurisdiction here, and then now they're suing them. To say now you lose that chokehold for America, if you wanted to really piss off America and say don't f with us because I'm going to destroy your Panama Canal and I'm going to mess with that's now gone.

"So if you're cornering me and I'm China, I'm sitting there saying, oh you want to do this, I have to make sure Iran makes it. I have to make sure I'm on Iran's side," he continued. "So then what other leverage are you going to have?"

Bet David went on to explain that now the PResident Trump has secured the Western Hemisphere, victory in Iran is expanding American influence into the Eastern Hemisphere, and giving the United States leverage points against our foreign adversaries.

"I'm not surprised that China says no, that wasn't us," he said. "They're testing their limits to see what they can get in there. Okay, because guess what happens? What's the worst-case scenario with the Strait of Hormuz that happens to China? What is the worst thing that can happen to China in regard to Strait of Hormuz? If U.S. controls Kharg Island, and we control Strait of Hormuz. Now that's not the Western Hemisphere, that's Eastern."

"So this is a very rough place for China"