The friendship between Iran and China is going to be converted into a 25-year agreement amid ongoing tensions with the US. Foreign Minister Wang Yi of China has reached Iran and this important agreement between the two countries could be signed. Iran and China have set a target of increasing bilateral trade 10-fold to $ 600 billion in the next 10 years. The two countries are going to make this agreement at a time when they are facing US sanctions.
The details of the agreement between Iran and China are yet to come, but it is believed that this includes China’s investment in Iran’s key sectors such as energy and infrastructure. China is one of Iran’s largest trade partners. According to Iran’s dialogue agency Irna, during this two-day visit of the Chinese Foreign Minister, the agreement for comprehensive cooperation will be signed.
Just before the deal, Iran has tightened its stance towards the US and the European Union. Meanwhile, China has also announced that it will try to defend Iran’s nuclear deal and protect the statutory interests of Sino-Iran relations. China made this comment at a time when it has purchased oil on record scale from Iran.
$400 billion investment for 25 years
The 18-page documents of this Sino-Iranian Mahadil show that China will buy oil from Iran for the next 25 years at a very low price. In return, China will invest in banking, infrastructure such as telecommunications, ports, railways, and transport.
It is believed that after this deal Iran will have access to Baidu called GPS of China. Not only this, China can help in launching 5G service in Iran. China is Iran’s largest trading partner. After the US withdrawal from the nuclear deal in May 2018, Iran is facing severe US sanctions.
This has greatly reduced its oil exports. After the deal with China, it could get an investment of $ 400 billion for the next 25 years. The China-Iran deal also includes military cooperation such as the development of weapons, joint training and training of intelligence to prevent ‘terrorism, drug and human trafficking and cross-border crimes’. Let me tell you that both Iran and China are currently having conflict with America. While the US is facing an impasse over its nuclear program with Iran, the Biden administration is running a ‘war’ on several issues with China.
China-Iran strategic deal is a big shock to India!
If this deal between China and Iran is successful, then India may face a big setback. If China maintains its military hold in this region, then there will be a crisis on American military influence in West Asia. China has already built a huge naval base in Djibouti, Africa. According to analysts, India may also be shocked by this deal.
India has spent billions of rupees on the development of Chabahar, Iran’s port. India’s relations with Iran are in a critical phase due to pressure from the US. Chabahar is extremely important both strategically as well as commercially. It is just 100 km from Gwadar Port of Pakistan, developed with the help of China.
India may also have to choose one of the countries of America, Saudi Arabia, Israel vs. Iran. There was a time when Iran was India’s main oil supplier, but under pressure from the US, New Delhi had to almost cease oil imports from Tehran. China’s presence in Iran could create a crisis for Indian investment. India wants to increase its direct access to Afghanistan via Chabahar. However, India is trying to maintain relations with Iran and has recently supplied the Corona virus vaccine.