China and Iran have discreetly drafted a security and economic contract which would pave the path for more than billion-dollar Chinese investments in energy. This would keep the Trump Administration’s efforts out of the way to desert the Iranian government for military and nuclear expansions.
An 18-page agreement would extensively focus on telecommunications, banks, railways, ports, and other projects. Acquired by The New York Times, the document sheds light on reinforcing Chinese military cooperation where the United States has been holding a strategic preoccupation for years.
The Chinese Foreign Ministry commented, “China proposes to build a regional multilateral dialogue platform with equal participation of all stakeholders.”
Wang Yi also added how the forum was created to mitigate tension in West Asia along with Iranian peers where he recapitulated Beijing’s support of Tehran. The forum aims to “enhance mutual understanding through dialogue and explore political and diplomatic solutions to security issues in West Asia.”
As per an Iranian official and oil trader, China is expected to receive a regular supply of Iranian oil at a heavy discount for the next 25 years.
The proposed agreement comes as a blow to Trump’s hostile policy in Iran’s direction since the 2015’s nuclear deal. Now, Tehran’s desperation is evident because the renewed US sanctions alerted any company to cut loose from the international banking system for doing business in Iran.
China has an appetite for oil and comes with technology to support Tehran’s ambitions. Iran is recognized as the largest oil producer in the world, but Trump has obstructed Tehran’s way to receive a large chunk of revenue.