Two ancient Asian cultures, two partners in the sectors of trade, economy, politics, culture and security with a similar outlook and many mutual bilateral and multilateral interests will consider one another strategic partners.
According to The New York Times, the agreement that Iran and China drafted is an economic and security partnership that would allow China to invest in Iran’s banking, telecommunications, ports, railways and dozens of other projects.
This all is undercutting the US administration’s efforts to isolate the Iranian government because of its nuclear and military defense ambitions.
In Tehran’s view, China and Iran are long-standing strategic partners who are now reinforcing their strategies on the international stage to oppose U.S. unilateralism.
Both countries had already agreed on a strategic partnership in 2016, but this latest agreement allows Iran’s economy to have a semblance of normalcy with this flurry of desperately needed investments.
The New York Times claims that the military ties include “joint training and exercises, joint research and weapons development and intelligence sharing” to fight “the lopsided battle with terrorism, drug and human trafficking and organized cross-border crimes.
The agreement is expected to guarantee the supply of Iranian oil to China for the next 25 years, which undoubtedly benefits both parties as the U.S. intends to completely block Iranian crude exports to starve the country of foreign money.
The deal is a major win for China’s Belt and Road Initiative as Iran’s major new investments in transportation, rail, ports, energy, industry, commerce and services will improve China’s network in the region.
Iran serves as a meeting point between South Asia, Central Asia, the Caucasus and the Middle East, making it one of the most important countries for the Belt and Road Initiative.
The agreement secures the supply of oil and gas to China with an overland route that gives another option away from Southeast Asian waterways, especially at a time when hostilities between China and the USA in the South China Sea are increasing.
The deal will see $400 billion worth of Chinese investments into Iran’s infrastructure, including upgrades in the oil industry and the construction of a 900-kilometer railway between Tehran and Mashhad, the second city of Iran and a center of pilgrimage near the borders with Afghanistan and Turkmenistan.
Not only will this railway line connect two of Iran’s most important cities, but as its on the doorstep of Central Asia, it will give both China and Iran greater access into Eurasia.
Russia simply cannot economically challenge China in the region, but due to the long history of the Russian Empire and Soviet Union controlling the region, it still has large influence for historical reasons that also includes a significant Russian minority and Russian being the second language of Central Asia.
Although Russia deals with Iran, it does not have the capabilities of investing hundreds of billions into the country, meaning that the Islamic Republic will certainly come under much stronger Chinese influence, and there is not much the U.S. can do to stop it.
It appears the U.S. will penalize Chinese companies dealing with Iran, but China would have anticipated this.
How Beijing plans to deal with such penalization’s that can unravel a worsening of already tense relations with the USA remains to be seen, but China certainly would have prepared for such a scenario.
Despite some harsh words from the State Department, it is highly unlikely that Washington can respond to this immense deal that will give the beleaguered Iranian economy and currency a major lifeline.
The deal will also encourage other states wary of U.S. sanctions to begin dealing with Iran again knowing that they can have Chinese support and backing.
Global Research California / ABC Flash Point News 2020.