There has been an ambitious deal in Iran and China, which is now eyeing the whole world. This strategic and trade agreement between the two countries will be valid for the next 25 years. After this agreement, there was news on Tuesday that Iran has separated India from the Chabahar rail project.
He has attributed this to the delay in getting funds from India. Four years ago there was an agreement between Iran and India to lay a rail line from Chabahar to Zahedan on the Afghanistan border. Now Iran has decided to complete this project on its own and has started work on it.
According to the US newspaper New York Times report, under this $ 400 billion deal, Iran will provide crude oil to China at very cheap rates for the next 25 years and in return, China will invest in Iran on a large scale.Both countries have made this agreement silently at a time when the world is facing the Covid-19 epidemic.
Since Iran has signed this agreement with China, bypassing the restrictions and threats of the US, it is expected to have far-reaching effects.Experts believe that this agreement will affect not only America but also the rest of the world including India.
What is in agreement?
According to Iran's news agency Tasneem, Article 6 of the agreement says that the two countries will increase cooperation in the fields of energy, infrastructure, industry, and technology.According to the news agency, "The two sides have agreed to increase cooperation for the next 25 years."
The deal has not yet been approved by Iran's Parliament Majlis, nor has it been made public, but the New York Times has obtained an 18-page document associated with the proposed agreement. The date of June 2020 is recorded on these documents and it has been described as the 'final blueprint' of the agreement.
The agreement stated at the beginning, "Two ancient Asian cultures, two allies with similar ideas in the fields of trade, politics, culture, and security, countries with many shared bilateral and multilateral interests, China and Iran would consider each other as their strategic allies." "
These documents show that according to the agreement:
China will invest $ 280 billion in Iran's oil and gas industry.
The Chinese side will also invest $ 120 billion to develop production and transportation infrastructure in Iran.Iran will regularly provide crude oil and gas to China at extremely cheap rates for the next 25 years.China will help Iran to develop infrastructure for 5G technology.China will increase its participation in banking, telecommunications, ports, railways, and dozens of other Iranian projects on a large scale.
The two countries will conduct joint military exercises and research in cooperation.China and Iran will build weapons together and will also share intelligence information.
What benefits will the two countries gain from the deal?
Talmiz Ahmed, an expert on Middle East affairs and Indian Ambassador to the Gulf countries, believes that this agreement is important for both China and Iran in many ways.
According to him, China is becoming an ally of Iran, which is strongly opposed by powerful countries like America, Israel, and Saudi Arabia. Ahmad believes that the way the Trump administration had imposed a maximum pressure on Iran by imposing strict restrictions on it would weaken considerably.
Foreign investment in Iran has come to a standstill due to US restrictions. In such a situation, due to China, foreign investment, technology, and development will gain momentum in Iran. On the other hand, China, the largest importer of crude oil, will get oil and gas from Iran at very cheap rates.
Also, China's position in defense matters is quite strong. Therefore, whether through defense products or strategic capability, China can help Iran both ways.On the other hand, Iran is important for China because it can help make its One Belt, One Road project a success.
What will be the impact on India?
Experts say that this agreement between China and Iran could also be a setback for India.Due to US sanctions, India has almost stopped importing oil from Iran whereas till a few years ago it used to be the major supplier of oil to India.
Also, India will suffer the loss of Chinese investment in Iran. India wants to develop Chabahar port in Iran and it was believed to be the answer to Gwadar port in Pakistan, China. Chabahar is also commercially and strategically important to India. In such a situation, the presence of China will create difficulties for Indian investment.
Because of this deal, the situation for India can be similar to America, Israel, and Saudi Arabia vs Iran. How difficult will it be for India?
In response to this question, Talmiz Ahmed says, "Since independence till now, India's foreign policy has been 'strategic attorney'. That is, India did not participate in any particular country or camp, did not come under their pressure, and tried to keep friendly relations with all countries according to their interests. But it seems that this policy of India has weakened for the last few years. In the neighboring countries of India, there is a perception that India is under American influence somewhere. "
According to Talmiz Ahmed, India's interests are in Iran, Russia, and China. India's interests are in Eurasia. He says that India should make it clear that the fight between America and Russia cannot be its fight.
How will the world's equations change?
Iran and China's resentment towards America is not new. The Institute for Trade Studies and Research, an institution affiliated to the Iranian Ministry, said in an article in 2012 itself that it is natural for China and Iran to be allies because both are unhappy with the dominance of the American and Western countries.Today the same resentment of both countries is in front of the world in the form of this agreement.
The Iranian Foreign Ministry says that China is the most powerful economy in the world and Iran is one of the biggest powers in West Asia. Together these two forces will end the pressure of 'bullying forces' (America).
Rakesh Bhatt, a knowledgeable and senior journalist of Iran, believes that China and Iran will indeed pose a challenge for Americans.
He told the BBC, "Iran has a stock of natural gases. Iran has the highest natural gas reserve after Russia. Iran is also second in terms of crude oil after Saudi Arabia. Through this agreement, China wants to challenge Saudi Arabia's monopoly and offers Iran as its alternative. "
Talmiz Ahmed also agrees with Rakesh Bhatt's views.
He said, "I believe that this agreement is very important strategically and because of this there will be a fundamental change in the Gulf region." A new 'power player' has arrived in this region with the arrival of Iran and China. Till now East America has predominantly dominated East Asia and Russia has also reached here to some extent in the last few years. This is the first time China has taken such a step here. ”
Says Ahmed, "The US adopted an aggressive attitude towards China through steps such as trade war, it forced China to make this agreement with Iran and now the two countries stand firmly in front of the US."Experts believe that after this agreement, the attitude of America and Western countries can be soft towards Iran.
Iran's public unhappy?
According to the BBC Monitoring report, the people of Iran are not happy with this deal. On social media, people are expressing various doubts about the agreement.
Iran's social media has # IranNot4SellNot4Rent (Iran is not for rent, Iran is not for sale) with the hashtag describing it as the beginning of 'Chinese colonialism'.
Rakesh Bhatt says that due to the fear in the minds of the people of Iran about this agreement, China's previous record is also due to it. Chinese investment has left countries like Africa's Kenya and Asia's Sri Lanka in debt. In such a situation, people feel that the fate of Iran will be similar.
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