China, Iran close to reaching trade and military partnership
13th July, 2020
Context:
Iran and China have quietly drafted a sweeping economic and security partnership that would clear the way for billions of dollars of Chinese investments in energy and other sectors.
Details:
Vastly expand Chinese presence in banking, telecommunications, ports, railways and dozens of other projects.
Receive a regular and heavily discounted supply of Iranian oil over the next 25 years.
Deepening of military cooperation
Giving China a strong presence in the region, which has been the foothold of the USA.
Calls for joint training and exercises, joint research and weapons development and intelligence sharing.
Potential impact:
Major decline in the relationship of USA and China.
Will also affect Indian investment in Iran at Chabahar port, as China will have upper hand in the saying of administration in Iran.
Major blow to the Trump administration’s aggressive policy toward Iran since abandoning the nuclear deal reached in 2015.