The global pandemic has brought many strategic shifts across globe. Highlighted among them is the economic downswing of America and China sensing the vulnerability in time. When it comes to timings, China must be appreciated to ink the biggest strategic agreement with Iran. No other time would be best for it. Sino-Iranian Partnership
The 25 years agreement between both countries entails $400 billion Chinese investment in Iran, $280 billion for petrochemicals and $120 billion for transportation and infrastructure in Iran.
China, on one hand, has at her best challenged the US domination in the world. Iran, on the other hand, has remarkably put an end to the global isolation in trade and economy it has been facing since 2015. The deals marks a win-win situation for both the partners.
The provisions for Iran
Eurasia has ever counted Iran as a non-aligned state for economic cooperation. The new deal will help Iran find good economic investments and energy projects at national and international levels.
Moreover, the kicking out of India from the Chabahar project and the Frazad B gas field project has already turn the tables around for Tehran. The continuous stabbing of Iranian trade and economy by US and India has eventually got a blow through the deal.
Iran also gets a neutral and genuine support of China in the United Nations that will surely bring an end to the US hegemony and sanctions against her. Making a strategic deal with the major member of SCO will also help Iran getting in. Also it will pave the ways for the West to reconsider their diplomatic trends with Iran but also strengthen the country economically.
The Sino-Iranian partnership provisions
Sino-Iranian deal makes Beijing a big winner in the diplomatic game. BRI has already provided China with a global merry in many connected states across globe. China is getting its roots fixed not only in South Asia, but also in the West, Europe, Central Asia and Middle East.
Being the world’s largest consumer of oil, a cheaper and easier access to Iran’s oil that too for good 25 years is a treat in itself for China. Also the cherry on the top are new the trade routes that will open up the gates for China through Iran.
China also has security benefits here. Its presence in the Strait of Hormuz from where 30-40% of world’s oil is transported will uplift international importance for Beijing. Moreover a hold in Iranian land will thump the US hegemony not only in Iran but also in the Gulf states.
The US ultimate power is mainly because of its hold over the world maritime routes. The Chinese presence on these channels would be a blow for US supremacy. Also the Indo-Pacific policies of US will lose their influence to much extent.
Additionally, the purveyances of the deal include the introduction of 5G telecommunication network in Iran, the entry of Huwaei company in the Iranian markets and the boost for Chinese new digital currency; Renminbi that will undermine the value of dollar in coming future.
The implications for Pakistan
The Sino-Iran deal has benefits for Pakistan as by-product. The major diplomatic favor Pakistan will get is the removal of India from certain projects in Iran. For the last few years, India has initiated many terrorism acts in Balochistan through the land of Iran. India has used Iran as a source of intelligence and terror in Pakistan. The presence of Kalboshan Yadav in Iran was a proof to the spy India.
Moreover, the disconnection of Iran and India has given Pakistan a sigh of relief because, it not only will minimize the terrorism but also the land connection of India to Iran and Afghanistan minus Pakistan will not be possible now. It will curb the possibilities of economic isolation conspiracies for Pakistan as planned by India.
Also the CPEC will help Pakistan being a land connection between China and Iran. Pakistan will thoroughly support the Sino-Iranian partnership.
Yet they say in global affairs, “There is some self interest behind every friendship. There is no friendship without self interest. This is a bitter truth” (CHANAKYA). The Sino-Iranian partnership, with all its pros, is not permanent. Once China or Iran get better interests and benefits in other projects, the partnership may halt. For good or for bad, the deals are valid only till the time they benefit mutually. Lets hope for the best.
The editor is a psychologist and analytical writer. She can be reached at email@example.com. The views expressed in this article are the authors own and do not necessarily reflect the editorial policy of Global Village Space.