Iran-China 25-year Cooperation Program

The Iran-China 25-year Cooperation Program or Comprehensive Strategic Partnership between I.R. Iran, P.R China[1] is an agreement on Iran-China relations drafted on 24 June 2020 in Beijing between Iran and China.[2][3] The document's possible draft is 18 papers long. The draft was initially leaked to the New York Times by someone close to the draft.[4][5] Petroleum Economist reports that the agreement includes up to US$280 billion developing Iran's oil, gas and petrochemicals sectors and another US$120 billion investment in upgrading Iran's transport and manufacturing infrastructure.[6][7] According to Iranian authorities, reviving the New Silk Road is also part of the agreement.[8]

Comprehensive Strategic Partnership
CreatedJanuary 23, 2016
LocationBeijing, China
Author(s)Minister of Foreign Affairs of the People's Republic of China, Ministry of Foreign Affairs (Iran)
PurposeAgreement in all areas of bilateral relations and regional and international issues

A report by Petroleum Economist initially claimed that, according to the agreement, "China will be able to buy any and all Iranian oil, gas and petrochemical products at a minimum guaranteed discount of 12pc to the six-month rolling mean price of comparable benchmark products, plus another 6pc to 8pc of that metric for risk-adjusted compensation". The same report claimed the agreement would allow China to lease Iranian islands and deploy security forces in Iran.[9]

Those reports were categorically denied by Iranian authorities, including Iranian foreign minister Mohammad Javad Zarif who said "such deal doesn't even exist, let alone have articles", and that "we have not handed over a [single square] meter of [our] land to China or any other country, nor granted any foreign country the exclusive right to take advantage of a handspan of Iran’s soil, and will not do this [in the future]”.[10] Later on, the spokesman for the Iranian foreign ministry confirmed to reporters that "there is no handing over of the Iranian islands, no presence of military forces and no other illusions". Reports regarding heavily discounted Iranian oil and petrochemical sales were also denied.[11][12]

Supreme leader Ali Khamenei receives Chinese leader Xi Jinping in his house

Based on the agreement China has agreed to inject $280 billions to $400 billion by Foreign Direct Investment into Iranian oil, gas and petrochemical industries.[13]

The original plan for cooperation had been brought by Chinese leader Xi Jingping in 2016 during a visit to Iran.[5] President Hassan Rouhani signed the final draft of the program on June 23 in a cabinet meeting and ordered the Ministry of Foreign Affairs to finalize the negotiations. As of July 2020, Iran's Parliament has yet to pass the deal but will likely follow suit.[5] On October 1, 2020 President Rouhani sent a message to Xi Jinping, paramount leader of China about signing the program.[14]

Background

Joining the SCO

For China, both the Shanghai Cooperation Organization and the 25-year program with Iran are part of the One Belt-One Road Initiative, so it is likely that in the near future Iran's request for permanent membership will be repeated and will be accepted by all its members.[15]

Draft

“This cooperation is a ground for Iran and China’s participation in basic projects and development of  infrastructure, including the large ‘Belt and Road’ initiative, and an opportunity to attract investment in various economic fields, including industry, tourism, information technology and communication,” the presidential website quoted Rouhani as saying.Ali Larijani is responsible for pursuing the program according to Mahmoud Vaezi.[16] [17][18][19][20]

South Asia geoeconomic effect

Iran has a similar project partnership with India and Russia called International North–South Transport Corridor.[21] There are also prospective developments in including Pakistan. Both Iran and Pakistan have had friendly relations with China in the past. The Belt and Road Initiative's benefits have the potential to outweigh the political and religious differences.[22] Freer trade between Iran and Pakistan due to railways and ports could open up potential development in both countries. There would also be a stronger, unified front to pressure Afghanistan to follow suit.[22] This potential agreement would also relieve India's pressure on Pakistan and China.[22]

National Internet

A member of Iranian Islamic Consultative Assembly said in June 2020 that in the draft document "cooperation in the development of cyberspace" has been listed and noted that using National Information Network offensive sites and databases can be filtered.[23][24]

Chinese security presence

According to The Economist, the investment comes with a discount on oil purchases, prioritizing China in implementing development projects and allowing 5,000 Chinese (foreign) security forces to be present on Iranian soil.[25] There is also talk of deepening military cooperation according the New York Times. The draft includes joint military exercises and training, research and weapons development, and intelligence sharing.[5] The reason being to stop terrorism, trafficking in persons and drugs, and cross-border crimes. Those reports were categorically denied by Iranian authorities on numerous occasions.

Effect on the Middle East

China's long term policy on non-political intervention has served it well in the pursuit of economic development. China has become economically involved with many nations in the middle east and the BRI will likely include many of those already involved with China. Making such a deal with Iran is a contentious move and the effects are unclear. The times article describes the move as conflicting with other regional players interests, primarily Saudi Arabia.[5] Time however, explains that it is no different than any of the other economic deals within the BRI that include other nations like other Gulf states and Egypt.[4] Chinas increasing support for nations that are in conflict with one another may begin to work against it, like its support of Palestine and Israel.[26] Though this may pale in comparison to the economic progress made through the BRI for the Middle East as a whole. Declining relations with the west and China's hands off policy in domestic matters of trade partners, makes China an appealing candidate for economic future of many states in the Middle East.[26] The deal with Iran may be the model under which other nations begin to follow.

U.S. Relations

Despite the escalations in tensions between the US, Iran and China, due to President Trump's administration, the Cooperation Plan is not in response to US actions. The deal had been in development since 2016, before the Trump administration left the Iran deal and prior to the changes in Chinese-U.S. trade relations.[4] However, the U.S. has had a hand in pushing the two nations together in the past. Its policies in the past have inadvertently pressured the two to work together due to nuclear nonproliferation and economic sanctions. China often extending an economic lifeline to Iran due to U.S. sanctions.[27] Saied Khatibzadeh, spokesperson for Iran's Foreign Ministry denies that progress in the deal has been delayed till after the US 2020 election.[28] As of October 19, 2020 the US has sanctioned six entities and two individuals for their activities involved with the Islamic Republic of Iran Shipping Lines (IRISL).[29]

Views

Inside

Former President Mahmoud Ahmadinejad criticized the deal and said: "I have heard government is in negotiations with a foreign country for a deal and no one knows, without telling people giving away peoples national wealth...."[30]

Ali Motahari said there must be a solution for issue of Xinjiang concentration camps regardless of accords for deal with China.[31]

Foreign

Reza Pahlavi, the heir of the former Imperial State of Iran, criticized the Iranian government and the program and called it betrayal of Iran's national interests.[32]

See also

Further reading

  • Defying U.S., China and Iran Near Trade and Military Partnership [33]

References

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  2. "Iran-China 25-year comprehensive plan for co-op proves failure of efforts to isolate Iran: SPOX". Shana. 2020-06-24. Archived from the original on 2020-07-07. Retrieved 2020-06-29.
  3. "Iran-China 25-year comprehensive plan for co-op proves failure of efforts to isolate Iran: government". Tehran Times. 2020-06-23. Archived from the original on 2020-06-27. Retrieved 2020-06-29.
  4. "What China's New Deal with Iran Says About Its Ambitions in the Region". Time. Retrieved 2020-11-12.
  5. Fassihi, Farnaz; Myers, Steven Lee (2020-07-11). "Defying U.S., China and Iran Near Trade and Military Partnership". The New York Times. ISSN 0362-4331. Retrieved 2020-11-12.
  6. "China and Iran flesh out strategic partnership". Petroleum Economist. 2020-09-28. Archived from the original on 2020-06-27. Retrieved 2020-06-29.
  7. "Archived copy". Archived from the original on 2020-10-11. Retrieved 2020-09-17.CS1 maint: archived copy as title (link)
  8. https://plus.google.com/113403756129291503583 (2017-06-14). "Iran, China Team Up on New Silk Road Project". Financial Tribune. Archived from the original on 2020-05-19. Retrieved 2020-09-18.
  9. "China and Iran flesh out strategic partnership". www.petroleum-economist.com. Archived from the original on 2020-09-21. Retrieved 2020-09-18.
  10. "Zarif says Iran won't give an inch of its soil to China in the 25-year partnership". Tehran Times. 2020-07-17. Archived from the original on 2020-07-20. Retrieved 2020-09-18.
  11. Staff, IFP Editorial (2020-07-08). "Iran Denies Allegations about 25-Year Cooperation Deal with China". Iran Front Page. Archived from the original on 2020-07-16. Retrieved 2020-09-18.
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  13. "Archived copy". www.tabnak.ir. Archived from the original on 2020-06-29. Retrieved 2020-06-29.CS1 maint: archived copy as title (link)
  14. https://www.yjc.ir/fa/news/7511650
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