China is no longer willing to follow the US agreement

Matthew Anthony, a professor of Political Science and International Relations at Cornell University, stated that China is unwilling to follow US law. Moreover, the country has made an agreement with Iran that could break Iran’s isolation. Even though no details have formally emerged, the nations are in the spotlight for their reported talks on a long-term partnership deal. 

Anthony states that it is understandable the two countries are pursuing such an agreement. Iran must break its isolation to survive economically in the face of US-led sanctions. Therefore, This agreement is an opportunity for Iran. China no longer seems to be willing to obey US-dominated international law and order.

The Iran-China agreement will weaken the sanctions regime

There is strong ideological opposition to governments like Iran from the Republican Party and US foreign policy. Anthony affirmed that the US government would continue this policy even if it does not achieve its goals through sanctions. However, the costs of these pressures are borne by ordinary people in the targeted countries. Therefore, there is no incentive to change this policy.

According to speculation in the media, the deal will pave the way for considerable Chinese investment in Iran’s strategically significant sectors. Among them are energy, transport, telecommunications, tourism, and healthcare. 

Tehran and Beijing mainly have a pragmatic, non-ideological, business-oriented relationship with each other.

Moving forward

Iran fully understands the implications of China’s fast advance as a global power. Iranian leaders now view the country as the only significant world power that could challenge the United States’ economic dominance. As a result, it could provide Iran with political and economical protection against US pressure. 

Meanwhile, China understands that Iran is a significant regional power positioned at the crossroads of the Middle East and Central Asia. The area is critical to the Belt and Road Initiative, BRI, a global infrastructure development strategy adopted by the Government of China. 

China ranks as one of Iran’s top trade partners. To ensure its fiscal well-being, Iran relies on oil exports to China. Meanwhile, Iran still has a great deal of untapped potential for foreign investment, and Beijing can capitalize on it.

In the past five years, China’s exports to Iran have increased rapidly. The country replaced Japan as the world’s second-largest exporter to Iran. Only between 2000 and 2005, Chinese exports to Iran grew by 360%. At the moment, China is responsible for around 9.5% of total Iranian imports.

China supports Iran’s ambitions to bring Caspian Sea oil and Gas to Southern Iranian ports by pipelines. Therefore, through this route, the commodities can be exported to Europe and Asia.