By Aria Zareibidgoli
Amidst tensions between the United States and China, the latter is pursuing a deal with another of America’s adversaries, Iran. The two countries seem to be in the closing stages of negotiations, developing an agreement that would signal increased cooperation in the decades to come.
The agreement signifies China’s defiance towards the United States’ aggressive policy attempts at isolating Iran and weakening its economy. The Joint Comprehensive Plan of Action, or the Iran nuclear deal, was initially supposed to relax the economic pressure on Iran through the removal and suspension of sanctions. However, the United States’ aggressive policy towards Iran resumed (arguably in a more drastic way than before) with the Trump administration’s abandonment of the nuclear deal, the reinstatement of sanctions, and among other additional measures, the outright threat of further sanctions against any buyers of Iranian oil.
These policies have succeeded in crippling the Iranian economy; the country faces a deep recession, a significant decline in oil exports and production, and a currency that is plummeting in value. Given these conditions, it’s not hard to imagine why Iran would actively seek a deal with its leading trading partner, China.
Many have described the deal itself as an economic lifeline for Iran; according to a leaked draft of the agreement, China will invest in Iran’s infrastructure, energy, transportation, and banking sectors for 25 years. These investments seem to total in at around $400 billion. In exchange, China will receive Iranian oil at a heavily discounted price. Additionally, the agreement suggests increased military cooperation and intelligence sharing between the two nations.
It’s important to consider this development in the greater context of China’s expanding influence. The agreement is the latest step in China’s Belt and Road Initiative, a policy aimed at investing in the development of various countries, primarily in Asia, Africa, and Europe. If the two nations finalize this deal, it will further establish China as a competitor to the US in pursuing dominance in the Middle East. This is especially relevant now when the United States is seeking to diminish their military presence within the region.
Importantly, the deal has emerged after western nations failed to maintain economic commitments outlined in the JCPOA. Therefore, this development also underscores that, following the abandonment of the Iran deal, Iran has moved to further create long-term plans with non-western nations to achieve economic stability. Importantly, this means that in placing intense economic pressure on the nation, the United States has pushed Iran further towards its global competitor, China.
