At the G7 Summit, President Donald Trump publicly thanked Xi Jinping and Vladimir Putin for staying neutral during the recent Iran conflict.
At first, it sounded like diplomacy.
But it may have revealed something much bigger.
This episode explores why Beijing chose caution over confrontation, what the so-called "CRINK" partnership really looks like, and why many Western governments are beginning to treat China less as an economic partner and more as a strategic risk.
In this video:
• Why China didn't intervene for Iran • Why the CCP's partnerships have clear limits • How the G7 is responding to China's rare earth leverage • Why Europe is pushing back against Chinese overcapacity • What this could mean for Taiwan and the future balance of power
This isn't just about China.
It's about how America's biggest strategic competitors are changing—and how the West is responding.
If you enjoy in-depth geopolitical analysis without the media spin, subscribe to World Decoded with Sam for new videos every week.
The video analyzes the weakening of China's strategic leverage, arguing that both its \"axis of evil\" alliances and its economic influence are eroding. By examining the lack of support for Iran during U.S. military action and the West's move to decouple critical supply chains, the speaker suggests Beijing's geopolitical \"bluff\" is becoming increasingly dangerous.
Beijing's two cards are busted, the axis of evil isn't so tight anymore, and Europe's
done playing nice.
Let me ask you something.
When your enemies are watching each other's backs, what happens when one of them gets
hit?
Do they rush in?
Do they fight back?
Do they honor the alliance?
Or, do they pull out a calculator?
At the G7 summit in Evian, France, mid-June, Donald Trump stood at a press conference and
delivered a line that sounded like a compliment.
He thanked Xi Jinping.
He thanked Vladimir Putin.
His exact words, and I want you to hear this carefully, I want to thank China, President
Xi.
I was with him, and he stayed neutral, totally neutral, and I appreciate it.
And I want to thank Vladimir Putin.
He was very neutral.
They could have made it much more difficult for us.
Now on the surface, diplomatic courtesy, a handshake and words, but sit with that for
a second.
Trump is publicly thanking the leaders of the Chinese Communist Party and Russia, America's
two biggest strategic rivals, for not helping their supposed ally while it was getting bombed.
That's not a compliment to Xi and Putin.
That's a eulogy for the axis of evil.
Because here's the thing.
For years, we've been told there's a new anti-American alliance.
The Chinese Communist Party, Russia, Iran, North Korea.
Four autocracies, one mission, destroy the American-led order.
State media in Beijing loves this story.
The Kremlin loves it.
The academic left especially loves it.
So when Iran, their partner, their brother in anti-Americanism, actually went to war
with the United States, where were they?
No warships flying the five-star flag.
No Russian military support.
No emergency alliance summit.
Nothing.
Trump noticed, and he said the quiet part very out loud.
Now, the Center for Strategic and International Studies, CSIS, has been tracking this so-called
axis for years.
The Chinese Communist Party, Russia, Iran, North Korea, they call it the crink axis.
Sometimes they call it the axis of upheaval.
Their conclusion, yes, cooperation is deepening.
But this has never been a formal military alliance.
Never.
Look at the economics.
The CCP runs an economy nine times larger than Russia's, 43 times the size of Iran's,
1,100 times the size of North Korea's.
Does that sound like an equal partnership to you?
Nope.
This isn't NATO.
This isn't a mutual defense pact.
This is a protection racket where one player is massively bigger than everyone else, and
the smaller guys think they're partners, right up until the moment they actually need help.
Geographically, Beijing, Moscow, and Pyongyang are neighbors in Northeast Asia.
They're nuclear powers.
Tehran?
Tehran is sitting alone in the Middle East, doesn't border any of them, and despite years
of nuclear ambition, has never actually crossed that line.
So what is this axis, really?
It's a convenience store coalition.
Everybody's got the same enemy.
Nobody's got the same plan.
Beijing wants stability.
The CCP is hooked on Middle Eastern energy.
If the Strait of Hormuz closes, their supply chain doesn't just hurt, it bleeds.
So Beijing's play.
Let Tehran annoy Washington, but don't let it torch the neighborhood.
Moscow wants distraction.
Every American resource burning in the Middle East is one less resource going to Ukraine.
Higher oil prices, bonus for Russia.
The longer this drags, the better Putin sleeps.
Tehran wanted survival.
They thought they had powerful friends.
Turns out, they were just a useful piece on someone else's chessboard.
When the bombs started falling, Beijing wasn't there.
Moscow wasn't there.
And now Trump is publicly thanking them for it.
That's not a compliment.
That's a humiliation wearing a handshake.
Let's be precise.
Beijing wasn't totally neutral, but they weren't a participant either.
Here's how the CCP played it.
Three layers.
Layer one, talk.
Beijing issued press releases, called for ceasefires, accused America and Israel of
aggression, packaged itself as a Middle East peacemaker.
The CCP's embassy in Washington put out statements about Beijing's consistent commitment to peace.
Beautiful language, zero cost, zero risk, pure theater.
Layer two, gray zone business.
Reuters reported earlier this year that Tehran was close to purchasing Chinese CM302 supersonic
anti-ship missiles, range of about 180 miles, low altitude, high speed, a serious threat
to shipping lanes around Hormuz.
Meanwhile, Beijing linked independent oil refiners kept buying Iranian crude in defiance
of U.S. sanctions.
The CCP's foreign ministry said they weren't aware of the missile deal.
Classic.
Sell the weapons, deny the sale, cash the check.
Layer three, no security guarantees, no fleet escorts, no alliance declaration, no direct
confrontation with America.
Trump said it himself.
She didn't send warships, didn't ship in advanced air defense systems, didn't do anything that
would cost Beijing real money or real blood.
And CSIS tells us exactly why.
Their analysis is blunt.
The single biggest reason Beijing and Moscow held back was that the Trump administration
directly attacked Iran.
Not a proxy war, not a covert operation, a direct U.S. military strike.
And neither the CCP, nor Russia, nor North Korea wanted a direct confrontation with Washington.
So they did the math, and they stayed home.
That's the dirty secret of the crink axis.
It's not that they wouldn't fight for Iran, it's that they wouldn't fight against America.
There's a difference, and Tehran learned that difference the hard way.
The CCP's support for Tehran was cold, precise calculation.
Keep Iran functional enough to irritate Washington, but don't get dragged into the actual war.
Let Tehran absorb the hits.
That's not an ally, that's a handler.
Tehran was the asset, until the asset became a liability.
Now here's where it gets interesting.
Because while the Iran war was exposing Beijing's alliance bluff, simultaneously, the G7 and
the EU were going after the CCP's economic card.
Beijing's economic card has always been this.
You need us.
Our market is too big.
Our manufacturing is too cheap.
Our rare earth control is too deep.
You can't quit us.
That was the leverage.
For 20 years, it worked.
It's not working anymore.
At Evian in mid-June, G7 leaders agreed to build a critical minerals alliance, coordinated
stockpiles, shared intelligence on supply chains, a unified crisis response.
The official statement didn't name the CCP directly, but everybody knows what this is
about.
Reuters confirmed it.
This was triggered by Beijing's decision to impose export controls on permanent magnets,
which sent global markets into a panic and proved once and for all how dangerously dependent
the West had become on a single supplier.
The target is simple.
Cut that dependence dramatically by 2030.
And the money is already moving.
64 billion euros committed.
Nearly 200 projects already launched.
Here's the irony Beijing should lose sleep over.
The CCP's own export controls are the best recruiting tool the West ever had.
Every time Beijing weaponizes rare earths, the West gets more motivated to permanently
cut the cord.
You want to use minerals as leverage?
Congratulations.
You just gave Germany, Japan, Canada, and Australia every reason to spend 64 billion
euros replacing you.
The CCP's foreign ministry called it in line with international norms and warned against
exclusive economic blocs.
Yeah, we'll get right on that.
While the G7 dismantled Beijing's minerals card, the EU was going after the CCP's manufacturing
card.
The numbers are staggering.
The CCP's trade surplus with the EU hit 360 billion euros in 2025.
One billion euros.
Per day.
And it's still growing.
This isn't normal trade.
Beijing has massive overcapacity.
Factories that can't stop.
Workers that can't be laid off.
Products that have to go somewhere.
So they dump them into Europe at artificially low prices.
Undercutting European manufacturers.
Putting European workers out of jobs.
One EU diplomat put it this way.
We live in a world of wolves now.
We no longer live in a world of pink ponies and rainbows.
That's not a think tank analyst.
That's a European diplomat.
In 2026, talking about Beijing.
Europe is waking up.
France, Italy, the Netherlands, and Lithuania circulated a joint paper last month calling
for emergency tariffs, sector-wide safeguards, and tougher measures against trade evasion.
The document described Beijing's behavior as systemic and structural industrial overcapacity.
Diplomatic language for, you're flooding our markets and killing our industries.
And here's the kicker.
Spain was originally on that document, then publicly pulled out, and went straight to
the cameras to say, we need friends, we need balanced relationships.
That's Spanish Prime Minister Pedro Sanchez.
Verbatim, Reuters.
Translation, we're not ready to get off Beijing's lap just yet.
This is the CCP's oldest European play.
Divide and delay.
Keep enough countries dependent enough that Europe can never speak with one voice.
Keep Germany's export lobby nervous enough that Berlin always pumps the brakes.
And keep Spain confused about whether Beijing is a partner or a predator.
But here's what's different this time.
Even with the divisions, European governments now agree on the diagnosis.
The CCP's manufacturing surge is a systemic risk.
That consensus didn't exist five years ago.
And once the logic shifts from efficiency to security, once Western governments decide
that supply chain safety outweighs cheap prices, that's a foundation that doesn't easily crack.
Beijing can exploit disagreements at the margins, but it can't unring that bell.
So let's bring this home.
Is Beijing losing?
No.
Let's not get ahead of ourselves.
The CCP and Russia will keep cooperating.
Keep covering each other at the UN.
Keep pushing the anti-American narrative in sync.
CSIS data shows their leaders and diplomats have met nearly 50 times since 2022.
That relationship is real.
And the G7?
Don't oversell it.
Germany is still hedging.
Spain just pulled its name off a document.
The Global South isn't lining up behind Washington.
Beijing knows every crack in the Western coalition, and it's been exploiting those cracks for
decades.
But something has fundamentally shifted, and it's hard to reverse.
The West is reclassifying the CCP.
Not as a cheap supplier.
Not as a valuable trading partner.
As a strategic risk.
As a dangerous dependency.
That shift didn't come from one summit.
It built over years.
COVID supply chain collapses.
Russia's invasion of Ukraine.
Beijing's rare-earth weaponization.
The CCP's refusal to condemn any of it.
Once that reclassification sticks, once the political will exists to restructure supply
chains, the economic leverage Beijing spent 20 years building starts to erode.
You can't threaten someone with dependency if they're actively cutting the dependency.
What does all of this mean if you're watching from Taipei?
The lesson from Iran is not subtle.
When Tehran needed its partners, they ran the numbers and stayed home.
The Krink Axis is great at press conferences.
Great at UN speeches.
Great at joint statements declaring eternal brotherhood.
But when America starts dropping bombs, everybody does the math first.
CSIS put it plainly.
None of the CRINK members won a direct confrontation with Washington.
Trump thanked Xi and Putin for their neutrality.
He said they could have made it much more difficult.
They didn't.
Think about what that means.
The strongest signal Beijing could have sent, a show of real alliance solidarity, would
have cost them something.
And the CCP chose not to pay.
Beijing's real nightmare isn't running out of enemies.
It's running out of friends it can actually count on.
It's using the rare earth card and watching the West decide, permanently, to build without
you.
The two biggest cards in the CCP's hand, the alliance card and the economic card, are both
losing value at the same time.
Beijing hasn't lost, but the cards are getting harder to play.
And in geopolitics, as in poker, when your best cards stop working, the bluff gets a
lot more dangerous.
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