China and Iran on Saturday signed the described 25-year "strategic cooperation pact”, during Chinese Foreign Minister Wang Yi's ongoing six-nation visit to West Asia.
The said pact is multidimensional as it includes mutual understanding, Chinese developmental assistance, and investment in developing Iran's oil, gas, and petrochemicals sector. Another USD 120 billion investment for upbringing Iran's transportation and manufacturing infrastructure for better trade. According to the Iranian authorities, reviving the New Silk Road is also an integral part of the agreement.
This agreement is likely to blow new life in the declining Iranian Economy which could not revive for a long time now due to US sanctions in the Trump government along with the Black List tag of FATF. Experts predict, China being the largest trading partner of Iran both will get benefits in long run.
While details of the new 25-year pact were not immediately available, it includes "political, strategic and economic" components, AFP reported, quoting Iran’s Foreign Ministry spokesperson Saeed Khatibzadeh as saying "this document can be very effective in enhancing” mutual relations and would establish a blueprint for "reciprocal investments in the fields of transport, ports, energy, industry, and development." While China will benefit from low-priced imports and defense cooperation to broaden its reach in the western sea.
Iran due to US, UN, European Union, and FATF sanctions couldn't sell its petrochemical products to major of its customers for a long time which hits its Economy severely. China amid these sanctions and isolation seemed to a continuous buyer of Iranian products for low prices.
Posts
