With Sanctions Removed, China has a Freer Hand of Alliance with Iran
Published By : 28 Jul 2015 | Published By : QYRESEARCH
According to a recent news report, the Iranian nuclear agreement is warmly welcomed by an array of world leaders as enlightenment and a new chapter in the foreign ties with Tehran. This is mainly due to the sanctions that will create new trade and investment opportunities in Iran.
Beijing is in the front line for Iranian business. Moreover, in the coming years, Tehran will deepen its long-standing relationship with the cyber, strategic domains, and in the field of military.
Beijing is expected to benefit the most from the removal of sanctions. It has turned to Tehran in order to help meet the growing energy needs. The Islamic Republic was China’s third biggest crude oil supplier.
In the last decade, the majority of the P5 + 1 mainly aimed to desert Iran from the world’s economy. China is the only country to benefit from Iran’s rift. China makes arduous efforts to protect the primary positions in non-oil as well as oil sectors of Iran’s economy.
In 2013, December, a report stated that the U.S. authorized Zhuhai Zhenrong Corporation a new gas condensate contract with the National Iranian Oil Company. In 2011, the People’s Republic introduced a record of 550,000 barrels from Iran every day. China was hesitant in instituting the sanctions on Iran. The oil imports continued despite the sanctions being in place.
The oil imports from Iran have increased by 30 percent in Beijing in the past five years. It now accounts for nine percent of its overall imports.
Across many regions, the sanctions relief will permit the companies in China to score more than the windfalls in oil sector investment and trade. Pakistan’s hopes on China are high and expect it to cater around $2 bn for the Iran-Pakistan liquefied natural gas pipeline.