India-China Oil Cooperation?

Rather than competing for the world's soon to be diminishing supply of oil, India and China are forging a farsighted partnership to head off what could be a massive crisis for both growing economies.

This is good news for the peace process. Better still would be for this prospective "Asian energy union" to trade in Euros so as to diminish the possibility of external interfence, namely from the US that is trying to forestall such cooperation in the hopes of keeping China on a shortened leash.

Of course, what happens in Iran this spring will play a monumental role in what direction this development takes. The US has already effectively pressured India to go along with punitive actions towards Iran, while China and Russia have tried to slow down the rush to judgement. More troubling is that Mani Shankar Aiyar the able oil and natural gas minister who led the rapprochement with China has been moved to a minor post in the January 30th cabinet shuffle. Many believe this move comes at the behest of the US, who did not take kindly to Aiyar seeking energy independence for India (as well as his criticism of the Iraq war).

More in these articles from the Hindu and WSWS about Aiyar's demotion.