IAS Gyan

Daily News Analysis

China making deep inroads into Iran

15th July, 2020 International News


  • China and Iran is finalising a deal of worth $400 billion dealing with investment in railway, ports, energy sector for a period of 25 years.

China – Iran Partnership:

  • Long term strategic partnership
  • Discussion started back in 2016.
  • Chinese service:
    • 5G services
    • Provide Own GPS services
    • Develop free trade zones
  • Iran will play a crucial role in Chinese Belt and Road Initiative.


  • Already China has tied up with Russia to make a multipolar world. Iran has joined this bloc too.
  • Could attract punitive measures from the U.S. against China.
  • Enhance the resilience of Iranian economy, develop its infrastructure.
  • Direct challenge to the US hegemony.

Indian Concern:

  • Recently, India was dropped from a Chabahar railway project.
  • Signifies, the declining influence of the India in Middle East.
  • Strengthening of the string of pearls around India.

Reference: https://www.thehindu.com/news/international/analysis-china-making-deep-inroads-into-iran/article32081851.ece