News recently emerged of a significant development in which China and Iran have formalised a 25-year “strategic cooperation pact”. This pact encapsulates political, economic, and strategic components, marking a significant diplomatic shift. Prompted by China’s support for Iran amid the continuing pressure of sanctions reinstated by the US following its withdrawal from the Iranian nuclear deal, this agreement seeks to deepen relations between the two nations.
Key Elements of the Pact
This cooperation pact is multifaceted, containing political, economic, and strategic elements. Furthermore, it aims to establish a blueprint for “reciprocal investments in the fields of transport, ports, energy, industry and services.” This pact forms a part of China’s wider trillion-dollar Belt and Road Initiative (BRI), indicating the country’s intent to fund infrastructure projects and expand its influence overseas.
China’s Growing Role in the Middle East
Iran has come to heavily rely on China as its most significant trading partner. During a recent visit to West Asian nations, the Chinese foreign minister proposed a five-point initiative aimed towards ensuring security and stability in the Middle East. This initiative promotes mutual respect, equity and justice, non-proliferation, collective security, and development cooperation. Prior to this, China and Russia appealed to the US to return unconditionally to the Joint Comprehensive Plan of Action (JCPOA) and to rescind unilateral sanctions against Iran.
Potential Military Partnership
China is reportedly also cementing a security and military partnership with Iran. The country advocates for joint training and exercises, joint research and weapons development, and intelligence sharing to combat terrorism, drug and human trafficking, and cross-border crimes. This potential partnership raises concerns that China’s investment in the development of Iranian ports could eventually grant them permanent military access arrangements with Iran.
India’s Concerns
India has expressed concerns over this new pact and potential military partnership. The increasing Chinese presence in Iran has led India to worry about its strategic stakes around the Chabahar port project, which it is currently developing. This port’s proximity to the Gwadar port in Pakistan, another port being developed by China as part of its BRI, raises significant concerns for India. Additionally, India finds itself in a difficult position due to the geopolitical rivalry between the US & China over Iran, especially given its concurrent border dispute with China.
Impact on Other Countries
The growing Chinese influence in Iran isn’t only a concern for India, but could also have an impact on Afghanistan and Central Asian nations. As China continues to extend its foothold in Iran, long-lasting changes in regional dynamics and relationships are anticipated.
Joint Comprehensive Plan of Action (JCPOA)
In 2015, Iran formed an agreement with the P5+1 group (USA, UK, France, China, Russia, and Germany) known as the Joint Comprehensive Plan of Action (JCPOA) or Iran Nuclear Deal. Under this deal, Iran agreed to limit its nuclear activity in return for the removal of sanctions and greater access to global trade. However, when the United States withdrew from the JCPOA in 2018 and imposed unilateral sanctions on Iran, Iran began withdrawing from restrictions put in place under the deal in hopes of pressuring other signatories to provide new economic incentives to balance out US sanctions.
