The whole world is eyeing the new economic and strategic partnership between Iran and China. According to a report of American newspaper, New York times, the agreement worth 400 billion dollars, under which Iran will provide oil to China on cheap prices for next 25 years, and in return China will invest a huge amount to build weak Iranian economy and its infrastructure. Moreover, China will cooperate Iran in a number of economic aspects that are technological, industrial, energy and scientific sectors. Iran is looking forward to this bilateral agreement, because it is a significant breakthrough in Iranian economy, which is badly struggling due to US sanctions. Few days later, Iran announced to distinct India from Chabahar project, India was supposed to build a railway track from Chabahar to Zahedan, but the Iran now decided to do it on its own because the Modi’s regime failed to pay funds to that project.
This partnership between Iran and China is not just a bilateral partnership, but it has implications on the politics of the whole region. It will influence a number of countries including the USA and India. The China has entered in partnership with Iran, a state which is strongly opposed by powerful states, like the US, Israel and Saudi Arabia. The economic pressure built on Iran by US sanctions will decrease to a large extent due to this bilateral agreement. Due to the trump harsh policies against Iran, the foreign investment in Iran was almost stopped, but the recent agreement can speed up the developmental process in Iran. Besides these aspects, Iran has faced some serious security threats from its opponents like Israel, this strategic partnership will give a sign of relief in terms of security. Moreover the China’s influence in middle east will increase to a large level, which will be not good sign for the US and its allies. Similarly, China will able to not only get a huge amount of gas and oil product from Iran, but this can also positively impact the Belt Road Initiative of China.
The recent deal, will have no healthy consequences for India, it can hurt India’s interests in the region. Few years ago, Iran was the major state that was exporting oil to India, but India later stopped to import oil from Iran due to US sanctions. Further, India wanted to invest in Chabahar port, to counter Gwadar port of Pakistan. The Chabahar port is strategically very important for India, but the presence of China definitely produces difficulties to India’s intentions. Due to the recent deal, the situation for India can be just like that for Iran against the US, Israel and Saudi Arabia. If this happens this will definitely hurt India.
After the independence, India has adopted non alignment policy, it has not picked sides in international conflicts. But in recent years, the ultra-nationalist thoughts of Modi’s regime have impacted its foreign policy too. It seams that India is going into the US block, that’s why it has backed from several Iranian projects. This will obviously damage India’s interests in the region. India should realize the fact, that the conflicts between Iran and US, China and US and US and Russia are its conflicts, and should focus more on its benefits.
Moreover, Pakistan can utilize the recent situations and can further push India into blind alley. Pakistan should adopt a proactive approach in this regard, and make sure a smooth relation with Iran, especially in terms of Chabahar and Gwadar future. Similarly, Pakistan can capitalize China-Iran nexus for raising its economy because Pakistan is already enjoying a very good economic relation with China.
By Barkat Ullah.
The writer is doing master in international relations, he writes on international and regional issues. He can be contacted on