IAS Gyan

Daily News Analysis

China, Iran close to reaching trade and military partnership

13th July, 2020 International News


  • Iran and China have quietly drafted a sweeping economic and security partnership that would clear the way for billions of dollars of Chinese investments in energy and other sectors.


  • Vastly expand Chinese presence in banking, telecommunications, ports, railways and dozens of other projects.
  • Receive a regular and heavily discounted supply of Iranian oil over the next 25 years.
  • Deepening of military cooperation
  • Giving China a strong presence in the region, which has been the foothold of the USA.
  • Calls for joint training and exercises, joint research and weapons development and intelligence sharing.

Potential impact:

  • Major decline in the relationship of USA and China.
  • Will also affect Indian investment in Iran at Chabahar port, as China will have upper hand in the saying of administration in Iran.
  • Major blow to the Trump administration’s aggressive policy toward Iran since abandoning the nuclear deal reached in 2015.

Reference: https://www.thehindu.com/todays-paper/tp-international/china-iran-close-to-reaching-trade-and-military-partnership/article32061692.ece