Iranian President Hassan Rouhani meets Chinese President Xi Jinping in Tehran in 2016 (Iranian Presidency/AFP)
Shireen T Hunter, Middle East Eye: How Iran-China deal could alter the Middle East's balance of power
By giving China a permanent foothold in Iran, the agreement would enhance Beijing's regional position and undermine US strategic supremacy in the Gulf.
The Iranian government has reportedly approved a draft 25-year deal with China on economic and political cooperation. Iran’s foreign ministry spokesman, Abbas Mousavi, said it was a proud moment for Iranian diplomacy.
Tehran has not revealed the full details of the agreement, but a previous report by the Petroleum Economist suggests that Iran is set to grant huge concessions to China, including significant discounts on oil and gas, and the ability to delay payments for up to two years and to pay in soft currencies.
China would also be granted first refusal on opportunities to become involved with any petrochemicals projects in Iran. If implemented, this agreement would make Iran highly dependent on China economically, while Beijing would acquire a large and secure source of energy, as well as a foothold in the Gulf.
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Update: The China-Iran strategic partnership, and how it can change geopolitics in the Middle East (The Print)
WNU Editor: What's my read of this partnership. From what I have read and seen so far, this is a huge win for China. They will be able to buy Iranian crude at a huge discount and on credit (two year delay in paying). And when China does pay, they will pay using "soft currencies", which in this current situation will result in payments being made with currencies that will probably depreciate over two years. The Iranians will now also open their markets to Chinese products. So expect a flood of Chinese goods that will probably wipe out Iran's business class and industry. And then there is the security aspect of this agreement. Nothing has been made public on that, but knowing the Chinese from my own 35 years of dealing with them, they will be wanting access to Iranian ports for their military ships, and the deployment of military personnel to a base or two managed by them in Iran itself. In short. Because of Iranian pride in not wanting to deal and negotiate with the U.S. (i.e. the Great Satan), it looks like they have sold their soul to the Chinese.
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