China Is Buying Record Amounts of Iranian Oil
China is moving closer to Iran than ever before,...
March 10, 2021*** Still, a changing stance in Washington is not the only factor in the expansion of ties between China and Iran. Renewed reports of massive Chinese investment into the country emerged in mid-2020 as the two countries appear to be close to finalizing negotiations on a long-term comprehensive strategic partnership deal. It would provide an influx in capital to Iranian industries including banking, infrastructure, telecommunications, and transportation sectors in exchange for discounted oil. Leaked documents also suggest that the pact will go beyond trade and investment and pave a path for additional military cooperation in the region. (China, Iran, and Russia also conducted unprecedented joint military exercises in the Gulf of Oman and Indian Ocean in late 2019, a move that raised concerns about the prospect of cooperation among what Washington paints as revisionist actors.)
Once finalized, the agreement is likely to be a much sought after economic lifeline for Iran. In Beijing’s eyes, the deal would aid in its efforts to diversify its energy supply and lay the groundwork to extend the Belt and Road Initiative,connecting corridors in South Asia and beyond to the Middle East. Infrastructure development, including the southern port city of Chabahar, could also further facilitate bolstering China’s energy security. “Securing freedom of navigationthrough the Persian Gulf is of great importance for China,” wrote Alam Saleh, lecturer at Australian National University’s Centre for Arab and Islamic Studies, and Zakiyeh Yazdanshenas, a research fellow at the Center for Middle East Strategic Studies for Foreign Policy.
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