By Sara Hsu
Trade between the two countries is set to explode.
China and Iran agreed last Saturday to increase trade to $600 billion in the next ten years, as President Xi Jinping met with Iranian President Hassan Rouhani after the lifting of international sanctions against Iran. China has been conducting economic relations with Iran in recent years, despite the presence of international sanctions on Iran for continuing to develop its nuclear program. Iran plays an important role in China’s One Belt One Road initiative, and is to become an important railway connection and remain an oil supplier to China. Should China’s relations with Iran be viewed as a threat to the West?
Maybe. China’s relations with Iran may support the latter’s military capabilities, particularly as China sells arms and transfers nuclear technology to Iran. China’s overall trade with Iran lessens the power of international sanctions. This relationship has reduced the power of sanctions and embargoes for decades, starting in 1979 when the U.S. and the West imposed arms embargoes on Iran, inducing Iran to purchase weapons from China instead. Iran acts as an important transport hub between China and Europe.
Or maybe not. Iran has curbed its nuclear program according to the International Atomic Energy Agency, which means that Iran has restricted its possession of enriched uranium, limited centrifuge operations, shipped out all spent fuel reactors, and met other conditions under the Joint Comprehensive Plan of Action. In addition, China is not the only nation Iran is attempting to openly court, now that sanctions have been lifted. Iranian President Hassan Rouhani traveled to Europe to rebuild political and economic relations in that region. Rouhani’s visit appeals to European leaders due in part to his stated commitment in fighting terrorism. Rouhani has underscored Iran’s desire to bring solidarity among all Muslims and combat discord.
Read the full story at The Diplomat