CHINA / IRAN
Go East, Young Man
China and Iran signed a 25-year cooperation agreement over the weekend, a move that defies the United States attempts to isolate Iran and allows it to form closer diplomatic ties with non-Western powers, the Wall Street Journal reported.
The agreement will offer an economic lifeline, technology transfer and foreign investment opportunities to Iran in sectors ranging from nuclear energy to the oil-and-gas industry.
In return, China will receive steady supplies of Iranian oil, currently subject to US sanctions.
The two countries also agreed to the formation of an Iranian-Chinese bank to help Tehran bypass US sanctions that have barred its participation in global banking systems.
Analysts said that the deal gives Iran “a way out of economic strangulation” caused by US sanctions, while also allowing China to increase its influence in the Middle East.
The pact comes amid an ongoing spat between the US and Iran over the latter’s nuclear program: In 2018, the Donald Trump administration withdrew from the 2015 nuclear deal with Iran and reimposed sanctions. The move prompted Iran to retaliate by violating some of the terms of the deal.
The Biden administration has expressed a willingness to return to the deal if Iran upholds its commitments spelled out in the accord. Tehran, however, demands sanctions relief before conceding to Washington’s demands.
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