The Agreement between China and Iran is the first time Iran has reached such a deal with a major world power – the last was a 10-year deal with Russia, which was later extended to 20 years. In Beijing, officials did not disclose the terms of the deal, and it is unclear whether Xi`s government signed it or, if so, when it might announce it. When reports of a long-term investment deal with Iran surfaced last September, China`s Foreign Ministry dismissed the issue from the outset. Asked about this last week, a spokesman, Zhao Lijian, left open the possibility that an agreement is being prepared. China also has serious concerns about Iranian proliferation, but it is fortunate to be a stowaway in global efforts to reduce Iran. China expresses all the good feelings about the desire for a negotiated solution to the differences, but at the same time, it is pursuing its own agreements with Iran and relying on its overwhelming advantage, which is due not only to the relative size of the economies of the two countries, but also to Iran`s isolation from the world. China accounts for about a third of Iran`s trade, and Iran accounts for less than 1% of China`s trade. China`s economy is 30 times larger than Iran`s and its population is 18 times larger. China is an elephant and Iran is an ant. Although China views Iranian proliferation as undesirable, it does not feel threatened by Iran.
Instead, China views Iran as a useful tool to use in its foreign policy by calibrating its distance and proximity to Iran to some extent in order to get closer to or further away from the US and its allies. The decisive impulse now is to move on. The Sino-Iranian deal could pave the way for future cooperation between Iran, China and Russia that would strengthen Iran`s role and influence in the Middle East and Afghanistan. Only time will tell if the deal is enough to increase Iran`s ability to counter U.S. pressure on nuclear negotiations and make China`s growing ambitions to bolster its role in the Middle East a reality. The 25-year Iran-China cooperation program or comprehensive strategic partnership between i.R. Iran, P.R. China[2] is a 25-year cooperation agreement for the development of Iran-China relations, signed in Tehran on March 27, 2021 by the foreign ministers of China and Iran; the final details of the deal have not yet been officially announced.
According to a 25-year draft agreement (signed in Beijing on June 24, 2020)[3][4], which was previously available to the New York Times, China must invest $400 billion in the Iranian economy during this period, in exchange for a regular and sharply reduced supply of oil from Iran. [5] [6] [7] The main details of the agreement were originally presented by British journalist and author Simon Watkins at a meeting published on 3 March. A September 2019 article published in the Petroleum Economist reported that the deal includes up to $280 billion for the development of Iran`s oil, gas and petrochemical sectors and an additional $120 billion investment in modernizing Iran`s transportation and production infrastructure. [8] [9] According to the Iranian authorities, the revival of China`s One Belt One Road initiative is also part of the agreement. [10] At a time when the United States is suffering from recession and coronavirus and is increasingly isolated internationally, Beijing is feeling American weakness. The draft Iran deal shows that, unlike most countries, China feels capable of challenging the United States, which is powerful enough to withstand U.S. sanctions, as was the case in President Trump`s trade war. [6] www.al-monitor.com/pulse/originals/2016/07/iran-shanghai-cooperation-organization-sco-accession.html Finally, there is still a broad consensus among observers that, given China`s desire for profitable trade with the United States and continued compliance with U.S. sanctions against Iran, the U.S. is a significant obstacle to deepening relations between Iran. Iran has a similar project partnership with India and Russia, the so-called International North-South Transport Corridor.
[24] There are also likely developments in Pakistan`s involvement. Iran and Pakistan have had friendly relations with China in the past. The benefits of the Belt and Road Initiative have the potential to outweigh political and religious differences. [25] The liberalization of trade between Iran and Pakistan through railways and ports could open up development potential in both countries. There would also be a stronger united front to put pressure on Afghanistan to do the same. [25] This potential deal would also reduce India`s pressure on Pakistan and China. [25] The Chinese also view Iran as a country that is nevertheless largely outside of all regional economic and security alliances. This is a problem that Beijing seems to promise to help solve through projects like the BRI. The recent announcement of a $400 billion strategic deal over 25 years between Tehran and Beijing must be seen in this context. The deal itself was not made public, and Iranian Foreign Minister Javad Zarif sought to stress that the deal with China was not a treaty, removing the need for parliamentary approval. He also denied presenting specific figures — despite reports of $400 billion in promised Chinese investment — or commitments for both sides.
. The partnership, detailed in an 18-page New York Times deal proposal, would significantly expand China`s presence in banking, telecommunications, ports, railroads and dozens of other projects. In return, China would receive a steady — and sharply reduced — supply of Iranian oil over the next 25 years, according to an Iranian official and an oil trader. Iranian Foreign Ministry spokesman Saeed Khatibzadeh said the deal was a “roadmap” for trade as well as economic and transport cooperation, with a special focus on the private sectors of the two countries. China has continued to defy the UNITED States by announcing its support for Iran`s reasonable demands for the Joint Comprehensive Plan of Action (JCPOA). China insists on protecting the flow of its oil imports from Iran and strives to avoid regional crises and conflicts, as well as US pressure. Iran, in turn, which sought to diversify its foreign economic relations and question the U.S. position as a security provider to the Gulf states, quickly moved closer to Beijing in the economic and political fields. For Iran, the Sino-Iranian partnership reflects Iranian resistance, the decline of the United States as a world power, and the inability of Western powers to abide by past agreements.
As with Tehran`s ongoing talks with the Russians, Iran should weigh in on the idea of giving the Chinese military access to its air and naval facilities. It should also be remembered that Iran and China are now almost united on some key issues in the Middle East, including support for the regime of Bashar al-Assad in Syria. The timing of the recent announcement of the 25-year strategic agreement is therefore less about the development of relations between Beijing and Tehran than about the rapid deterioration of relations between Beijing and Washington. China is trying to identify areas where it can strengthen its influence, and Iran is an opportunity of choice. The agreement also serves China`s interests in the Indian Ocean. 80% of China`s oil imports and 95% of trade with the Middle East pass through the Indian Ocean and the Strait of Malacca. Although China`s navy is considered the largest in the world, China still faces geopolitical and security challenges related to its maritime superiority in 2020, according to the Pentagon`s latest annual report, which could be solved by creating a vast network of cooperating foreign ports to protect its economic interests. The Sino-Iranian deal provides for the joint development of two ports in Iran, the port of Chabahar and a new oil terminal near the port of Jask, south of the Strait of Hormuz sea route. These two ports will be the most important in China`s Indian Ocean port chain, along with the port of Gwadar in Pakistan and the port of Kyaukpyu in Myanmar. The superiority of China`s maritime capabilities, on which it will rely for future confrontations with the United States, Japan, India and Australia, is likely to alter the balance of power in the Indian Ocean, especially as China expands its presence and economic ties with Iran. .
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