The New Investment Plan Between China and Iran and How it Affects the Global Economic System

    The US so far on the $ 400 billion comprehensive economic cooperation plan between China and Iran for 25 years. A new alliance is emerging between China and Iran with the two countries signing a deal that will ensure Chinese investment in Iran and China receiving oil at discounted prices!

    Analysts say that this step will prove to be an important ‘game changer’ not only for the region but also in the global economic system. But there is no official response from the US so far on the $ 400 billion comprehensive economic cooperation plan between China and Iran for 25 years.

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    There is restlessness in Pakistan over the fact that now China is turning to Iran. But Pakistan’s diplomats and analysts who keep a close watch on this issue have clearly dismissed this doubt. He says that the recent China and Iran Economic Cooperation Agreement will not be an alternative to the China Pakistan Economic Corridor (CPEC), but will strengthen it.

    The long-standing US sanctions on Iran have brought it so close to China. This is the reason that Iran has agreed to sell oil to China at a lower price than the global rates. So that the sale of its oil can continue without interruption and the national treasury can get a reliable source of income.

    Experts say that the documents of the agreement have not been revealed yet. But the information that has been received shows that in Iran’s delicate economy, projects worth $ 400 billion in the next 25 years can help in bringing economic stability.

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    In return, China will be able to purchase oil, gas and petro-chemical products from Iran at a discounted rate. In addition, China will also invest in Iran’s financial, transportation and telecommunications sectors.

    Under this agreement, for the first time in Iran’s history, the two countries will cooperate in state, security and military matters through joint training exercises, weapons modernization and joint intelligence.

    According to the agreement between the two countries, five thousand soldiers of the People’s Liberation Army of China will also be deployed in Iran. But keep in mind that there are also protests in Iran, in which former President of Iran Ahmadinejad is at the forefront.

    It is also speculated that perhaps Iran may be an ideal candidate to adopt China’s new digital currency, e-RMB, which has weakened the power to ignore and approve the dollar.

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    Remember that Iran is not currently connected to the global financial and banking system SWIFT and is not dealing with Iran.

    According to experts, Tehran has tried to make itself a powerful country for the new global situation by collaborating with China on long-term economic, infrastructure construction, and security issues. But on doing so, on the one hand, Iran may face new sanctions from the US; on the other hand, this agreement can save it from the continuous sanctions of the US.

    Is the Preparation to compete with world power?

    India’s famous defense analyst Pravin Sahni says, “I think it would be wrong to see this agreement in the context of regional tensions in the Persian Gulf. China has always avoided supporting or opposing anyone in the Iran-Saudi rivalry.” “The main reason for China’s increasing presence in the Persian Gulf is its economic affairs.”

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    He says that China and Saudi Arabia also signed major economic deals a year ago. But this new agreement of China with Iran reveals another important point. That is, instead of singling out Tehran alone, US sanctions have pushed it even further into the Chinese camp. Therefore, the importance of this agreement is not only important for the region, but it also appears to be preparing to compete with the world power.

    Praveen Sawhney says, “More details of the agreement are not available at the moment, so it cannot be compared to C-Pec. However, the big difference is that the basic interests of both parties are connected to it. China needs oil Need, which he will get from Iran at cheaper rates. “

    “Iran, in turn, wants to invest in its economic, oil production, infrastructure and trade, which China will provide. There is economic cooperation in Sino-Iran relations, which is not the case with China and Pakistan. How is this difference?” “At the moment, nothing can be said about this.”

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    According to him “Iran has the resources that China desperately needs, that is, hydrocarbons. Pakistan has no such wealth. Therefore, in terms of economic matters, Pakistan and China relations are very different from China and Iran relations. . “

    According to Praveen Sahni, however, there has been much discussion on whether the corridor based on Pakistan, Iran, Central Asia will lead to economic development and improvement in the region.

    “It may be a long-term plan, but there is no possibility of its benefits in the short term. Iran and Pakistan do not manufacture industrial products that Central Asian countries import, nor do Pakistan and Iran export Central Asian. Are the major markets for “.

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    He said that there is such infrastructure from China to Central Asia as well as Europe, due to which the network of roads and railways is spread there. He says that “it is difficult to see how the new routes of China, Pakistan and Iran, will be able to be an alternative to these old paths”.

    Praveen Sawhney further said that the project of building the Chabahar port of Iran was initiated by India because India had to use Afghanistan’s mineral resources and make them better by utilizing Iran’s industrial capacity.

    Clearly, given the ground situation in Afghanistan, it was like a ‘distant drums’. Afghanistan’s economy is not large enough for India to build a major road or railway infrastructure for the India-Afghanistan trade corridor through Iran.

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    He further said that Pakistan has tried its best to stay away from Iran-Saudi confrontation in the Persian Gulf and India has done the same.

    He says, “Both sides have economic interests in this conflict, but at the same time, there are internal issues related to this confrontation. So over time, it is becoming more and more difficult to maintain balance between all the parties. Especially Then, when America decides in the next few years that it needs to increase further pressure on Iran. I don’t think there is any other option than to maintain a realistic balance. “

    Is America the one pushing Pakistan and Iran towards China?

    Iqbal Ahmad Khan, former Pakistan ambassador and professor of diplomacy and international relations at the Lahore University of Management Sciences, says China’s investment plan with Iran is part of its $ 8 trillion BRI projects, one of which is C-Peck. Is.

    According to former Ambassador Iqbal Ahmad Khan, it is not right to compare China’s investment in Iran with C-Pec. Because both of these are Chinese investments and both will be helpful for each other and all three countries will benefit from it.

    The New Investment Plan Between China and Iran
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    He says, “Both China and Iran are friends of Pakistan, so Pakistan wants the project to succeed.”

    The former ambassador further said that China’s investment in Iran is not at the cost of Pakistan, so it should not be considered a “zero-sim-game”.

    On the question whether Pakistan and China will be able to bear the burden of US sanctions on Iran. Iqbal Ahmed Khan said that the main reason for China’s investment in Pakistan and Iran, in fact, is the sanctions imposed by the US or attempts to ignore these countries.

    The New Investment Plan Between China and Iran
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    He says, “Both Pakistan and Iran have been sidelined by the United States, which led us to look the other way. Pakistan decided to make the most of its political and geographical position. On one side is China and on the other side is Iran.” However, if Pakistan is a friend of China, it does not mean that Pakistan is hostile to America, but China has asked Pakistan to improve its relations with both America and India many times. Should be

    Iqbal Ahmed Khan said that Pakistan will gladly cooperate with Iran, but Pakistan will also try to make Iran like it a member of Shanghai Cooperation Council.

    He says, “China’s cooperation with Iran will directly benefit Pakistan. The oil from Iran, which currently reaches China after covering 13 thousand miles. It is 15 hundred miles by way of Pakistan by safe passage to China. Will arrive. “

    The New Investment Plan Between China and Iran
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    He said that China’s investment in Pakistan, Iran, Turkey and other Asian countries and its investment in economic and business infrastructure, from the Atlantic Ocean to the Indian Ocean and Pacific Ocean regions, are solid signs of shifting the world’s power.

    Pakistan and Iran have an important role in this process of global change. There is also the role of US sanctions in this process of change, which is pushing these countries to the other side. “

    What would be an Impact on overall geo-political balance of Gulf and region?

    Osama al-Sharif, an analyst at Arab News, wrote that the 25-year comprehensive strategic partnership agreement between China and Iran will have a long-term impact on the overall geopolitical-political balance of the Gulf and region.

    The agreement has been signed at a time when relations between Beijing and Washington are very tense.

    The deal gave Tehran a strong position on Iran’s nuclear deal with the West, renegotiation and efforts to expand it.

    The New Investment Plan Between China and Iran
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    According to Osama al-Sharif, the agreement will provide China with the opportunity to deploy 5 thousand security and military personnel on Iranian soil, which will prove to be a regional game changer.

    Prior to China, Tehran signed a 10-year cooperation agreement with Moscow in 2001, particularly in the nuclear sector, which has since been extended twice.

    He wrote that two years ago I joined a naval exercise with Iran, Russia and China. This new agreement will allow China to set up bases in the Gulf region as well as in Central Asia.

    In return, Iran will get China’s technology and invest in its poor infrastructure.

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    The Chinese government has been strengthening its economic ties with other Gulf countries for years.

    Beijing has signed cooperation agreements with the United Arab Emirates and Kuwait and has good relations with Saudi Arabia.

    “The new agreement will increase the sense of danger in the Gulf Arab capitals. Because these countries see Iran as a major source of instability and its alliance with Beijing will further strengthen the line between Tehran and Qom.” “

    According to al-Sharif, in addition, Israel will also feel uneasy about China’s move. Both Russia and China, who signed Iran’s nuclear deal, supported Tehran’s side and openly violated US sanctions.


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