Iran, China Sign $400 Billion Strategic Deal
Representatives of Iran and China signed a 25-year, $400 billion cooperation deal in Tehran over the weekend, agreeing to partner on economic measures to counter the impacts of US sanctions on both nations.
The partnership is said to form a part of China’s Belt and Road Initiative, a plan to centralize a Chinese-reliant global economy to replace the existing US-led post World War II system. China has employed the economic mercantile program to indebt nations throughout Asia and Africa in return for Chinese technology, infrastructure and investments.
The deal will reportedly commission the foundation of a China-Iran bank, an institution that could prove to be an effective countermeasure to US-led sanctions. The agreement contains a guarantee of cheap oil to China for its duration, allowing China a possible means to avoid purchasing oil from Russia and America.
The deal may threaten attempts to renegotiate the Iran Nuclear Deal cancelled by President Trump, but early moves from Joe Biden’s State Department indicate the Democrat isn’t keen to jump back into the nuclear arms control deal.
The deal has invited some blowback in Iran, where locals fear the ruthless economic mercantilism practiced by China, but the cold relations between the Islamic Republic and countries aligned with the US have driven the two Asian nations into alignment. Fixation merely upon Iran could weaken the American capability to compete economically and geopolitically with China, a far more potent threat to American interests in the 21st century.