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The Iran-China strategic agreement

  • By Al Mayadeen
  • Source: Al Mayadeen
  • 9 Jun 2021 09:13
6 Min Read

Iranian and Chinese committee meetings came to a mutual understanding to implement mutual investments and to exchange technologies. Also, the partnerships are not limited to trade but also include oil and gas.

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  • The Iran-China Strategic Agreement
    The document between China and Iran proposes the establishment of a joint project to trade goods between the two countries.

China seeks to revive the "Belt and Silk Road", which is historically a series of land and sea roads that reaches up to 12,000 km and linked Asia, the Arab region, and Europe for hundreds of years.

Starting from the second century B.C., the road was used to exchange goods, such as silk, incense, perfumes, spices, and others.

This commercial route has created a kind of intellectual, cultural, and religious cross-pollination between people of various races and religions.

The Chinese president considers this major project a basis for achieving development for the participating countries, with less damage to the environment, achieving a more developed and brighter plan.

The Iran-China agreement

Thirty committees worked day and night to negotiate and reach a strategic Iranian-Chinese agreement, which is far beyond exchange and introduces real partnerships. 

This agreement cannot be viewed from a bilateral point of view because there is an Iranian-Russian agreement similar to it and also a Russian-Chinese agreement.  Dozens of committees worked between Iran, Russia, and China to reach a joint tripartite agreement to limit US hegemony over the world.

Hassan Moukalled, an economist, shared his analysis on Al Mayadeen and drew attention to protocols that were agreed upon between Iran and China years ago, pointing out that there is an Iranian-Russian protocol and a Chinese-Russian protocol. These agreements are based on how certain commercial exchanges can be turned into partnerships.

The basic agreement between Russia and China was $600 billion for 10 years, along with a side agreement worth $300 billion for seven years, and an Iranian-Russian protocol worth $500 billion over 10 years.

For this, the work between Iranian and Chinese committees was highly efficient for two years. During these meetings, an agreement was reached on the implementation of mutual investments and the exchange of technologies. These partnerships are not limited to trade exchange, they initially include oil and gas.

The common denominator between Iran and China is Pakistan, which includes large Chinese investments, and Iranian investments, which established strong relations with Tehran. Agreements were reached in the fields of gas and oil, scientific exchange, defense, and military industries. 

An agreement was made in the field of communications, which includes security and information, including strategic and geopolitical shifts.

Iran started using Chinese technology two years ago, which is used globally today, with no "GPS" and the only one that cannot be monitored. In this agreement, there is a decision to completely convert it to this system, thus entering the circle of countries that can use the two systems: "GPS" and the Chinese system.

Iran was able to obtain the privilege to transfer this technology to neighboring countries and become a partner in this system.

The agreement includes cooperation and industrialization in its various civilian, military, and space forms.

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The cornerstone of this understanding is not a trade exchange. There is a basic partnership, and this is the first time China concludes an understanding of such, with a country other than Russia.

Moukalled referred to the Chinese Foreign Minister's announcement, before signing the agreement with Iran, to remove the US dollar from the internal Chinese stock exchange trading, which means moving to an executive phase to stop the dollar from being a currency reference for pricing in China. 

These measures will entail external measures, but the Chinese interest is currently preventing them, not the American interest.

He added that China is the largest creditor of the United States, as well as the largest investor in it, and is considered the keenest on the American currency because it possesses the largest number of interests in it.

Taking such a measure means going to another prank, referred to as the establishment of a new monetary fund and an international bank between the BRICS and some countries of the world. They are much larger, and their systems are different from those of the International Monetary Fund and the World Bank.

The agreement signed with Iran is dedicated to this issue.

He recalls that the Russian-Chinese agreements that began two years ago are related to the aircraft industry, gas, oil, science, and space, and he concludes by saying that the economic, financial, and commercial dimensions of the agreement need a long time to be explained, but that this agreement has very huge political repercussions.

Terms of the Agreement

- China's continuous import of Iranian crude oil.

- Develop multi-faceted transportation, including rail networks, highways, and land, sea, and air routes.

- Cooperation must be developed in the fields of agricultural production, medicine, health, and innovative industries.

- Trade capacity development and improved capacity building in customs cooperation.

- Operating the capabilities of the two countries to implement large mining projects.

- Developing military, defense, and security cooperation in the fields of education, research, defense industry, and cooperation on strategic issues.

- Participation in establishing and equipping oil, gas, and petrochemical reservoirs in the two countries.

- Exporting Iranian gas to Pakistan and China, and the latter's participation in the production of electricity and its transmission between Iran and neighboring countries.

The document proposes the establishment of a joint project to facilitate the trade of goods between the two countries, opening branches or representative offices of Iranian banks in the Chinese special economic zones, and the establishment of a joint Chinese-Iranian bank.

This understanding has caused an imbalance in the balance of power, forcing the US and the countries part of the nuclear agreement to open channels of communication and re-negotiate with Tehran over its nuclear file, intending to reach understandings through which Washington and the West seek to enter the Iranian market at all levels, to curb Chinese expansion and the exploitation of Iran's wealth and its geostrategic position.

The question here is, will we witness an American-Chinese conflict because of Iranian?

  • United States
  • Washington
  • Pakistan
  • silk road
  • China
  • Iran

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