[Asia Economy Reporter Park Sun-mi] As Iran and China are promoting a broad partnership for joint response against the United States, an analysis has emerged that even if an agreement is not immediately signed, the draft cooperation itself is sufficient to pressure the U.S.
On the 13th, The Wall Street Journal (WSJ) reported that the preparation of the cooperation draft between Iran and China strongly aims to externally demonstrate that both countries have alternatives to the U.S. The Iran-China cooperation draft, currently pending approval by the Iranian parliament, is expected to allow Chinese capital investment within the Iran Free Trade Zone and open the way for joint projects between Iran and China in third countries such as Syria and Iraq. Even if the U.S. strengthens sanctions against Iran, the expansion of cooperation between Iran and China could reduce its influence, meaning the U.S. could face significant pressure on its Iran policy.
WSJ specifically noted that the Iran-China cooperation draft includes the construction of railroads in Iran by China, and by carrying out mutual cooperation projects at several ports along Iran’s southern coastline, the Chinese government is expected to gain priority access rights to Persian Gulf port facilities. China is anticipated to make investments in Iran that will enable it to import Iranian oil stably and continuously.
The New York Times (NYT) also reported that the two countries will carry out cooperation projects worth $400 billion across comprehensive sectors such as finance, telecommunications, ports, and railroads, stating that an 18-page cooperation draft has already been prepared, approved by Iranian President Hassan Rouhani, and will soon undergo approval by the Iranian parliament. In response to reporters’ questions about whether the cooperation draft has been finalized, the Chinese Ministry of Foreign Affairs gave an indirect answer instead of a definitive one, saying, "The two countries have traditionally deep friendship and have communicated about the development of bilateral relations. We are ready to advance substantive cooperation with Iran."
Experts emphasize that even if Iran and China do not immediately see results from implementing the cooperation draft, the very fact that the two countries are pursuing cooperation shows that they have alternatives to the U.S. and other Western countries.
Dina Esfandiary, a researcher at the U.S. think tank The Century Foundation, explained, "The preparation of the cooperation draft itself is an intentional expression" and "a useful promotional message." The founder of the Iranian economic media Boss & Bazaar (B&B) said, "The partnership between Iran and China was discussed in 2016, but the recent renewed emphasis on negotiations shows that Iran strongly intends to somehow leverage the escalating tensions between the U.S. and China," diagnosing that "Iran aims to use the heightened U.S.-China tensions to establish a framework for long-term cooperation between Iran and China."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
