An environment conducive to attracting Chinese investment to Iran should be created, a former diplomat said.
“China is important to Iran from international, political, economic and oil perspectives … Favorable conditions should be created in the investment sector so that Iran and China can work together more closely,” Ali Khorram, who formerly served as Tehran’s ambassador in Beijing, told Mehr News Agency in a recent interview.
He added that the two countries are facing similar economic issues and need each other to advance their strategic goals.
“I believe China will maintain its ties with Iran as long as its [trade] confrontation with the United States continues because Iran has similar challenges as China, given the fact that we are experiencing trade restrictions imposed by the Americans,” he added.
In a split with European allies, US President Donald Trump walked back its commitment to the Iran nuclear deal brokered during the previous US administration and reinstated sanctions on the country that had been lifted as part of the 2015 agreement.
Tariff tensions between China and the United States, the world’s two largest economies, rattled financial markets for most of 2018, resulting in billions of dollars of losses for both sides in 2018 and hitting industries, including automotives, technology and agriculture.
Shared Interests
Khorram, who is who is also an expert on international affairs, says Tehran and Beijing are bound together by common interests.
“China is still a major importer of crude from Persian Gulf countries, and Iran needs to sell its oil to other nations to safeguard its economic interests … Although the Chinese are seeking to replace oil with other alternatives, it will remain their most strategic imported commodity for at least the next 30 years,” he said.
Washington seeks to bring Iranian oil exports to zero in order to curb Tehran’s missile and nuclear programs and counter its influence in the Middle East. But China, Tehran’s biggest crude buyer, has received a temporary waiver from US sanctions that allows it to buy 360,000 barrels per day of oil.
“Iran needs to cooperate with China, Russia and India in the sanctions era to be able to weather the storm,” the former official noted, adding that the opportunity created by the ongoing US-China trade war should be used properly.
He said one of the most important areas of cooperation between Iran and China is technology.
“China may not be as technologically advanced as the United States or European countries, but they can be a good trade partner for Iran,” he said.
“In addition, there is a need to foster a favorable climate for investment so that the two countries can forge closer ties … The Chinese have so far been reluctant to invest in Iran but have made investments in Iran’s neighboring countries, including Pakistan.”
Khorram maintains that China is yet to see Iran as an “ally” so efforts should be made to change the economic superpower’s attitude toward investment in the Islamic Republic.
