https://www.gatestoneinstitute.org/17229/china-iran-challenge
According to a leaked draft of the comprehensive strategic partnership agreement, circulated last year, Iran will receive $400 billion dollars in Chinese investments over the next 25 years in key Iranian economic sectors, including energy, telecommunications, defense, infrastructure, banking, petrochemicals, railways and ports. According to the leaked draft, there will be also an expansion of military assistance, training and intelligence-sharing. Nearly 100 projects are cited in the draft. In return, Iran will commit to providing regular and heavily discounted oil, gas and possibly other natural resources to China.
“Strategically, the BRI is how China is seeking to collapse Western-American dominance in the region peacefully… the BRI is a sophisticated Chinese plan to transfer hegemony from the West and the U.S. to China without war or conflict”. — Dr. Mordechai Chaziz, author of China’s Middle East Diplomacy: The Belt and Road Strategic Partnership, thediplomat.com, March 10, 2021.
The timing seems hardly a coincidence, but rather an outcome of the Biden administration’s appeasing overtures to Iran with its formal offer of restarting nuclear talks. The signing of the agreement itself can be seen as a Chinese-Iranian act of defiance against the US, undercutting sanctions against Iran by supplying the regime with an economic lifeline, while showing China off as an active global power that is able and willing to stand up to the US.
For China, Iran is a welcome counterbalance to US influence in the region, as the only large regional power that is not aligned with the US, in addition to having enormous oil and natural gas resources and providing a large market of more than 80 million citizens for Chinese goods.
“China is pivoting towards more autocratic regimes that represent greater stability for its supply lines than democracies that are, or may become, hostile to Beijing.” — Verisk Maplecroft risk consultancy firm, March 17, 2021.
On March 27, China and Iran signed a comprehensive strategic 25-year partnership agreement on economic and security cooperation. The agreement was signed in Tehran, where China’s Foreign Minister Wang Yi was visiting as part of his tour of the Middle East.
Details of the agreement were not immediately published. The Iranian Foreign Ministry communicated that it was a “roadmap for cooperation” and that no “contracts” were included in it. “Prospects for cooperation, whether economic, political, cultural or strategic, have not been quantified, therefore it does not include numbers on investment or financial and monetary resources,” a statement of the Iranian Foreign Ministry reported.