Countries develop relations with each other to gain some sort of mutual benefit. China-Iran growing relations provide benefits to both countries but have the potential to change the world dynamics and shape the future. Iran and China signed an agreement to boost ties for more than 25 years. The amount of money involved in this agreement is between 400 billion dollars to 600 billion dollars. This Iran-China deal is termed as the hallmark for these two countries. Both countries share the vision that they need each other and the US presence in this region is a threat to their strategic and security interests. This deal brings Iran into the One Belt One Road (OBOR) project- a Trillion dollars Chinese project of roads, railways, and seaports connection.
China-Iran deal involves investments in Infrastructure, Telecommunications, banking, and free trade zones. Moreover, cooperation in intelligence sharing and weapons design can mostly be a part of this. The official documents of this agreement have not been made public, but a draft of this agreement was leaked last year stating all these above-mentioned things.
How Relations between China and Iran can impact the World Powers?
Both countries consider the US as a threat to achieving a stable and powerful global position. Thus, both countries were in talks for many years for some sort of an agreement that will help them to curb US influence in this region and improve their economy.
Impact on China:
1) China will get cheap oil which will be very good for its economy.
2) China needs to befriend such a country that is unfriendly towards the USA. Moreover, when the nuclear deal takes place, China will already have a hold-in Iran.
3) Chinese manufacturers will find a new market in Iran.
4) It will not only give Beijing a secure Oil route but also a stronghold in the Indian Ocean.
5) It will add more legitimacy and strength to OBOR and will increase China’s global reach.
Impact on Iran:
1) Partnership with a World Power like China is a thing of importance for Iran. It gives the impression that Iran is not totally Isolated due to sanctions.
2) China wants oil and Iran wants to sell it. Thus, these needs of both countries will be met. As a result, Iran’s economy will improve leading to job generation.
3) Nuclear deal is now being negotiated between Iran and World powers. An agreement like the Iran-China deal will allow Iran to show some courage and would not allow the west to dictate their terms on the deal.
Impact on other World Powers:
Apart from these two countries, their relations also impact the world powers. There is a reason why their partnership is termed as game changer for the region.
China-Iran relations and Impact on the USA:
1) the US wants containment of China. China is growing its influence and it is against US desires. A huge agreement will Iran has given a serious hit on this US strategy.
2) Iran will be now more on the front foot in deciding the term of the nuclear deal. The US wanted a complete submissive Iran.
3) USA and Israel are close friends. Israel and Iran are nemeses. Thus, this deal will not sit well with Israel and understandably with the US as well. Both want the isolation of Iran.
Iran’s growing relations with China and its Impact on India:
1) China-Iran deal has serious ramifications for India’s strategy of not allowing China to gain influence in the Indian Ocean.
2) China will have easy access to Gulf regions which can impact India’s trade. India’s trade could feel a hit as China’s products are cheaper.
3) India could pressurize Pakistan with its influence in Iran. Now, Iran has dropped India of Chahbahar Project, and China has gained a foothold in Iran which is a friend of Pakistan. Therefore, this Iran-China deal has given a huge blow to India’s plan of pressurizing Pakistan.
4) Huge amounts of Chinese investments in the up-gradation of Iranian seaports can turn into “a military thing.” China can use these seaports for its navy. India calls this Chinese strategy “String of Pearls”. It means that China is encircling India to increase its influence.
Impact of Growing China-Iran relations on the Arabs:
The Middle East and China have deep relations. Trade volume is huge between them, and trade mostly consists of oil. The Middle east thinks of Iran as a rival. So, middle eastern countries are not happy with growing Iran-China relations.
Does the relation between China and Iran undermine the importance of Pakistan and CPEC?
The Iran-China deal can be viewed as beneficial for Pakistan. Pakistan no longer has to worry about the increase in India’s influence in Iran. With CPEC in full swing, Pakistan can provide a route for Iranian oil and gas to reach China and earn Transit money. Furthermore, Chahbahar port and Gwadar can be linked that will further improve connectivity in this region. This China-Iran deal does not undermine Pakistan’s importance and CPEC, rather it can prove to be beneficial. In the modern world, a stable neighbor means you are stable, and an unstable neighbor is a threat to security.
Bottom Line:
Iran-China deal could prove to be a game-changer in Asia. It can increase China’s influence in Iran, the Indian Ocean, and trade with Middle Eastern countries. Moreover, this deal will reduce the US and India’s influence in this region. Thus, it is a win for Iran and China and a loss for the US and India. The USA must think of a comprehensive strategy to curb China’s global expansion. Meanwhile, Iran will get benefits like improvement in the economy and no longer threat of isolation. What the future holds is still unpredictable but for now, China is winning the influence war on the world over the USA.
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