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Iran–China 25-year Cooperation Program

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China–Iran Comprehensive Strategic Partnership
Chinese foreign minister Wang Yi (left) and Iranian foreign minister Mohammad Javad Zarif (right) after signing off on the cooperation program in Tehran
Created27 March 2021
LocationTehran, Iran
Signatories People's Republic of China
Islamic Republic of Iran
PurposeAgreement in all areas of bilateral relations and regional and international issues[1]

The Iran–China 25-year Cooperation Program or Comprehensive Strategic Partnership between I.R. Iran, P.R. China[2] is a 25-year cooperation agreement on the further development of Iran–China relations signed in Tehran by the Chinese and Iranian foreign ministers on 27 March 2021; the final details of the agreement have yet to be officially announced. Under a draft of the 25-year agreement (signed on 24 June 2020 in Beijing)[3][4] previously obtained by The New York Times, China is to invest US$400 billion in Iran's economy over that time period in exchange for a steady and heavily-discounted supply of oil from Iran.[5][6][7] The key details of the deal were originally reported by British journalist and author, Simon Watkins, in an article published on 3 September 2019 in Petroleum Economist stating that the agreement includes up to $280 billion towards developing Iran's oil, gas and petrochemicals sectors and another investment of $120 billion towards upgrading Iran's transportation and manufacturing infrastructure.[8][9] According to Iranian authorities, reviving the Chinese One Belt One Road Initiative is also part of the agreement.[10]

The report by Petroleum Economist stated that, according to the agreement, "China will be able to buy any and all Iranian oil, gas and petrochemical products at a minimum guaranteed discount of 12pc to the six-month rolling mean price of comparable benchmark products, plus another 6pc to 8pc of that metric for risk-adjusted compensation." The same report added that the agreement would allow China to deploy security personnel on the ground in Iran to protect Chinese projects, and that there would be additional personnel and materiel available to protect the eventual transit of oil, gas, and petrochemicals supplies from Iran to China, where necessary, including through the Persian Gulf.[11]

Later reports in other publications added that the deal included the leasing of Iranian islands to China were categorically denied by Iranian authorities, including by the Iranian foreign minister Mohammad Javad Zarif, who stated "such a deal doesn't even exist, let alone have articles", and that "we have not handed over a [single square] meter of [our] land to China or any other country, nor granted any foreign country the exclusive right to take advantage of a handspan of Iran’s soil, and will not do this [in the future]”.[12] Later on, the spokesman for the Iranian foreign ministry confirmed to reporters that "there is no handing over of the Iranian islands, no presence of military forces and no other illusions". Reports regarding heavily-discounted Iranian oil and petrochemical sales were also denied.[13][14]

Based on the agreement, China has agreed to inject $300-$400 billion[15] by foreign direct investment into the Iranian oil, gas and petrochemical industries.[16]

The original plan for cooperation had been proposed by Chinese leader Xi Jinping during a 2016 visit to Iran.[7] Iranian president Hassan Rouhani signed the final draft of the program on June 23 in a cabinet meeting and ordered the Iranian foreign ministry to finalize the negotiations. As of July 2020, Iran's parliament has yet to pass the deal but will likely follow suit.[7] On 1 October 2020 President Rouhani sent a message to Xi Jinping about signing off on the program.[17]

Background

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Ali Khamenei receives Xi Jinping in Beit-e Rahbari, Tehran (2016)

The Republic of China and Iran officially established diplomatic relations in 1937. In 1971, Iran recognized the People's Republic of China (ruled by the Chinese Communist Party) as the sole legitimate government of China, and likewise rescinded its recognition of the Republic of China (with its Kuomintang government now based in Taiwan) as a state. In the early years of the Cold War, Iran and the People's Republic of China were on opposing sides of the Iron Curtain, with Iran being a part of the American-led Western Bloc from the 1953 coup and China being a part of the Soviet-led Eastern Bloc until the latter broke away in 1961, thus siding with the Western Bloc until the end of the Cold War.

Following the 1979 Iranian Revolution, which established the present-day Islamic Republic of Iran, the two states maintained their diplomatic relationship as Iran and the United States severed their bilateral ties during the Iran–U.S. hostage crisis. Iran was eventually put under international sanctions, although China still provided aid in the form of armaments to the Iranians during the Iran–Iraq War.

The Shanghai Cooperation Organization, on which Iran is an observer state, and the 25-year Iran–China program are both part of the Chinese Belt and Road Initiative, so it is likely that Iran's request for permanent membership will be repeated in the near future and will be accepted by all its members.[18]

Draft

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“This cooperation is a ground for Iran and China’s participation in basic projects and development of infrastructure, including the large 'Belt and Road' initiative, and an opportunity to attract investment in various economic fields, including industry, tourism, information technology and communication,” the presidential website quoted Rouhani as saying. Ali Larijani is responsible for pursuing the program, according to Mahmoud Vaezi.[19][20][21][22][23]

South Asia geo-economics effect

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Iran has a similar project partnership with India and Russia, called International North–South Transport Corridor.[24] There are also prospective developments in including Pakistan. Both Iran and Pakistan have had friendly relations with China in the past. The Belt and Road Initiative's benefits have the potential to outweigh the political and religious differences.[25] Freer trade between Iran and Pakistan due to railways and ports could open up potential development in both countries. There would also be a stronger, unified front to pressure Afghanistan to follow suit.[25] This potential agreement would also relieve India's pressure on Pakistan and China.[25]

National Internet

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A member of Iranian Islamic Consultative Assembly said in June 2020 that in the draft document "cooperation in the development of cyberspace" has been listed and noted that using National Information Network offensive sites and databases can be filtered.[26][27]

Chinese military presence

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According to the Petroleum Economist report of September 2019, the investment comes with a discount on oil purchases, prioritizing China in implementing development projects and allowing 5,000 Chinese (foreign) security forces to be present on Iranian soil.[28] There is also talk of deepening military cooperation, according to The New York Times. The draft includes joint military exercises and training, research and weapons development, and intelligence sharing.[7] The reason being to stop terrorism, trafficking in persons and drugs, and cross-border crimes. Those reports were categorically denied by Iranian authorities on numerous occasions. Article 146 of the Iranian constitution forbids the presence of foreign military bases on Iranian soil, even for peaceful purposes.[29]

Effect on the Middle East

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China's long term policy on non-political intervention has served it well in the pursuit of economic development. China has become economically involved with many nations in the Middle East and the BRI will likely include many of those already involved with China. Making such a deal with Iran is a contentious move and the effects are unclear. The Times article describes the move as conflicting with other regional players interests, primarily Saudi Arabia.[7] Time however, explains that it is no different than any of the other economic deals within the BRI that include other nations like other Persian Gulf states and Egypt.[6] China's increasing support for nations that are in conflict with one another may begin to work against it, like its support of Palestine and Israel.[30] Though this may pale in comparison to the economic progress made through the BRI for the Middle East as a whole. Declining relations with the West and China's hands off policy in domestic matters of trade partners, makes China an appealing candidate for economic future of many states in the Middle East.[30] The deal with Iran may be the model under which other nations begin to follow.

U.S. relations

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Despite the escalations in tensions between the US, Iran and China, due to President Biden's administration, the Cooperation Plan is not in response to US actions. The deal had been in development since 2016, before the Trump administration left the Iran deal and prior to the changes in Chinese-U.S. trade relations.[6] However, the U.S. has had a hand in pushing the two nations together in the past. Its policies in the past have inadvertently pressured the two to work together due to nuclear nonproliferation and economic sanctions. China is often extending an economic lifeline to Iran due to U.S. sanctions.[31] Saied Khatibzadeh, spokesperson for Iran's Foreign Ministry denies that progress in the deal has been delayed till after the US 2020 election.[32] As of October 19, 2020 the US has sanctioned six entities and two individuals for their activities involved with the Islamic Republic of Iran Shipping Lines (IRISL).[33]

See also

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References

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  1. ^ "وزارت امور خارجه جمهوری اسلامی ایران" (PDF).
  2. ^ "Full text of Joint Statement on Comprehensive Strategic Partnership between I.R. Iran, P.R. China". www.president.ir. Archived from the original on 13 September 2020. Retrieved 11 October 2020.
  3. ^ "Iran-China 25-year comprehensive plan for co-op proves failure of efforts to isolate Iran: SPOX". Shana. 24 June 2020. Archived from the original on 7 July 2020. Retrieved 29 June 2020.
  4. ^ "Iran-China 25-year comprehensive plan for co-op proves failure of efforts to isolate Iran: government". Tehran Times. 23 June 2020. Archived from the original on 27 June 2020. Retrieved 29 June 2020.
  5. ^ China, Iran Sign 25-year Cooperation Accord
  6. ^ a b c "What China's New Deal with Iran Says About Its Ambitions in the Region". Time. Retrieved 12 November 2020.
  7. ^ a b c d e Fassihi, Farnaz; Myers, Steven Lee (11 July 2020). "Defying U.S., China and Iran Near Trade and Military Partnership". The New York Times. ISSN 0362-4331. Retrieved 12 November 2020.
  8. ^ "China and Iran flesh out strategic partnership". Petroleum Economist. 28 September 2020. Archived from the original on 27 June 2020. Retrieved 3 September 2019.
  9. ^ "موضع هند درباره تفاهم‌نامه ۲۵ ساله چین-ایران". Archived from the original on 11 October 2020. Retrieved 17 September 2020.
  10. ^ Jalili, Saeed (14 June 2017). "Iran, China Team Up on New Silk Road Project". Financial Tribune. Archived from the original on 19 May 2020. Retrieved 18 September 2020.
  11. ^ "China and Iran flesh out strategic partnership". www.petroleum-economist.com. Archived from the original on 21 September 2020. Retrieved 3 September 2019.
  12. ^ "Zarif says Iran won't give an inch of its soil to China in the 25-year partnership". Tehran Times. 17 July 2020. Archived from the original on 20 July 2020. Retrieved 18 September 2020.
  13. ^ "Iran Denies Allegations about 25-Year Cooperation Deal with China". Iran Front Page. 8 July 2020. Archived from the original on 16 July 2020. Retrieved 18 September 2020.
  14. ^ "Iran Denies Reports of 25-Year Strategic Deal with China - Politics news". Tasnim News Agency. Archived from the original on 2 October 2019. Retrieved 18 September 2020.
  15. ^ Cheema, Shazia Anwer (28 March 2021). "China-Iran Strategic Partnership Agreement and New Regional Order". Dispatch News Desk. Archived from the original on 28 March 2021. Retrieved 4 April 2021.
  16. ^ "تصویب سند ۲۵ ساله ایران و چین در هیات دولت و چند نکته!". www.tabnak.ir. Archived from the original on 29 June 2020. Retrieved 29 June 2020.
  17. ^ "امضای برنامه ۲۵ ساله ایران و چین گامی بزرگ در جهت پیشبرد منافع مشترک است".
  18. ^ "برنامه 25 ساله همکاری با چین و آینده عضویت ایران در پیمان شانگهای". ایرنا (in Persian). 19 July 2020. Archived from the original on 25 July 2020. Retrieved 17 September 2020.
  19. ^ "همکاری نزدیک لاریجانی با دولت در قرارداد 25 ساله با چین- اخبار مجلس و دولت ایران - اخبار سیاسی تسنیم - Tasnim". خبرگزاری تسنیم - Tasnim.
  20. ^ "ربیعی: برنامه ۲۵ ساله همکاری با چین، شکست انزوای ایران را ثابت کرد". ایمنا (in Persian). 23 June 2020. Archived from the original on 29 June 2020. Retrieved 29 June 2020.
  21. ^ "Iran stresses deepening of the 25-year bilateral cooperation program with China". Iran Press (in Persian). 24 June 2020. Archived from the original on 11 October 2020. Retrieved 29 June 2020.
  22. ^ Jalili, Saeed (22 June 2020). "Gov't Approves 25-Year Roadmap for Iran-China Cooperation". Financial Tribune. Archived from the original on 14 July 2020. Retrieved 29 June 2020.
  23. ^ "برنامه ۲۵ ساله همکاری‌های جامع ایران و چین تصویب شد". خبرگزاری مهر | اخبار ایران و جهان | Mehr News Agency (in Persian). 21 June 2020. Archived from the original on 2 July 2020. Retrieved 29 June 2020.
  24. ^ "Iran-China Partnership: Is India losing out here?". Times of India Blog. 17 July 2020. Archived from the original on 1 September 2020. Retrieved 17 September 2020.
  25. ^ a b c Raza, Fatima (2019). "Prospects for Pakistan-China-Iran Trilateral Cooperation: Opportunities and Challenges". Strategic Studies. 39 (3): 37–52. doi:10.53532/ss.039.03.00104. ISSN 1029-0990. JSTOR 48544309. S2CID 248703598.
  26. ^ "اجرای طرح اینترنت ملی در سند همکاری ۲۵ ساله با چین آمده است". www.entekhab.ir. Retrieved 17 September 2020.
  27. ^ رادیو فردا. "یک نماینده مجلس از احتمال اجرای طرح اینترنت ملی با همکاری چین خبر داد". رادیو فردا (in Persian). Archived from the original on 8 September 2020. Retrieved 17 September 2020.
  28. ^ "از توافق ۲۵ ساله ایران و چین چه درز کرده؟". BBC News فارسی (in Persian). Archived from the original on 28 September 2020. Retrieved 17 September 2020.
  29. ^ Constitution of the Islamic Republic of Iran, Article 146.
  30. ^ a b Aoun, Elena; Kellner, Thierry (2015). "The Crises in the Middle East: A Window of Opportunity for Rising China". European Journal of East Asian Studies. 14 (2): 189–224. doi:10.1163/15700615-01402003. ISSN 1568-0584. JSTOR 44162361.
  31. ^ Harold, Scott; Nader, Alireza (2012), "China and Iran:: Economic, Political and Military Relations", China and Iran, Economic, Political, and Military Relations, RAND Corporation, pp. 1–28, ISBN 978-0-8330-7825-4, JSTOR 10.7249/j.ctt1q60w8.7, retrieved 12 November 2020
  32. ^ Speare-Cole, Rebecca (5 November 2020). "Iran denies China deal talks suspended until the U.S. has a new president". Newsweek. Retrieved 12 November 2020.
  33. ^ "The United States Imposes Sanctions on Chinese and Hong Kong Persons for Activities Related to Supporting the Islamic Republic of Iran Shipping Lines". United States Department of State. Retrieved 12 November 2020.

Further reading

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