China Signs 25-Year Deal with IRAN

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China Signs 25-Year Deal with IRAN 

China and Iran signed an overarching deal aimed at charting the course of their economic, political and trade relations over the next 25 years.

The Chinese government plans to invest in Iran and buy oil from the Islamic Republic. This will further strain it’s relations with the U.S. The “Comprehensive Strategic Partnership” agreement, signed in Tehran on 27 March 21 by Iranian Foreign Minister Mohammad Javad Zarif and his Chinese counterpart, Wang Yi, has been in the process since 2016, when President Xi Jinping became the first Chinese leader to visit the Iranian capital in over a decade.

Beijing’s alliance with Tehran is a challenge to U.S. as it confronts the Chinese challenge. The document can elevate bilateral ties to a new strategic level. The deal focuses on boosting private-sector collaboration and Iran’s role in Xi’s flagship infrastructure and investment program, the Belt and Road Initiative.

A draft copy of the accord which surfaced on media last year showed plans for long-term supply of Iranian crude to China as well as investment in oil, gas, petrochemical, renewables and nuclear energy infrastructure. Lured by the prospect of cheaper prices, China has already increased its imports of Iranian oil to around 1 million barrels a day, eroding U.S. leverage as it prepares to enter stalled talks with Tehran to revive a nuclear deal.

The Biden administration has indicated that it’s open to reengaging with Iran after then-President Donald Trump abandoned the accord nearly three years ago and re-imposed economic sanctions. But the two sides have yet to even agree to meet. Iran exported around 2.5 million barrels of oil a day before American penalties were imposed on Iran.

Iran’s closer integration with China may help shore up its economy against the impact of the U.S. sanctions, while sending a clear signal to the White House of Tehran’s intentions. In a televised speech, Rouhani raised the prospect of restrictions being eased before the end of his second and final term as president in early August.

Criticism of the Agreement

Since no details of the agreement have been made public, it has drawn criticism, both within Iran and China. Many Iranians on social media have accused President Hassan Rouhani’s government of “selling” Iran to China.Among the Iranian opposition, a petition has been started accusing China of signing a deal with a politically bankrupt regime.

Similarly there is internal criticism within China who warn that the deal, signed with Iran, a country sanctioned by the US and facing an uncertain economic outlook, carries uge risks and will pose a challenge to China’s foreign policy.

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