Iran-China Bilateral Relations: Opportunities and Irritants

Iranian President Ebrahim Raisi’s three day China visit – from Feb. 14-16, 2023 — was important for more than one reason. It was Raisi’s first visit to China as Iranian President, and also happened to be the first visit by an Iranian President to China in two decades. The Iranian President had met with Chinese President, Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit, held at Samarkand, in September 2022. During his China visit, Raisi met with Chinese President Xi Jinping, Chinese Premier Li Keqiang and Chairman of the Standing Committee of the National People’s Congress Li Zhanshu during his China visit. 

Second, during Raisi’s visit about 20 agreements were signed to enhance bilateral cooperation between Beijing and Tehran in a number of areas including environment, international trade, intellectual property, agriculture, export, healthcare and media. During his meeting with Chinese Premier Li Keqiang, Raisi pointed to the 25-year strategic cooperation agreement – referred to as the Iran-China Comprehensive Strategic Partnership — signed between both countries, in March 2021, as an illustration of robust ties between both countries.

Another instance of strong China-Iran cooperation is Beijing’s purchase of oil from Iran — much to the displeasure of the US. According to estimates, China bought around 7,0000 barrels per day in 2022. In January 2023, US State Department Spokesperson Ned Price warned China against purchase of oil from Iran in violation of US sanctions. Said Price while alluding to Beijing’s oil purchases from Iran: “We don’t preview potential sanctions actions, but we continue to monitor Iran’s oil exports and to engage Iran’s trading partners about the possibility of exposure to US sanctions.”

While referring to ties between Iran and China the Iranian President said that both countries were friends in the midst of tough situations. The Chinese President on his part stated that irrespective of the global situation, China will enhance cooperation with Iran, push for implementation of the China-Iran comprehensive strategic partnership, and work jointly with Iran on important global issues. 

Third, both Xi and Raisi criticized Washington’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA) 2015/ Iran nuclear deal and subsequent imposition of sanctions on Iran. Chinese President spoke against any sort of external interference in Iran’s internal affairs that attempts to undermine Iran’s “security and stability”. China also said that it would play a positive role in talks pertaining to the revival of the JCPOA. In spite of tensions between China and the US, Washington has been working with Beijing for the revival of the Iran nuclear deal.

There is no doubt, that China-Iran relations have strengthened especially after the US withdrawal from the JCPOA in 2018. It is important to bear in mind that there are some major irritants in the Iran-China relationship which are often relegated to the side lines, because most commentators view the Iran-China relationship solely from the lens of both countries having strained relations with the US and both having strong ties with Russia. 

It is important to understand however that in spite of its lofty commitments made in the 2021 agreement with Iran, China’s investments in Iran have been limited. This was clearly evident in the tone of a Foreign Ministry hand out in which the Iranian President clearly alluded to the fact that the Iran-China economic relationship was way below what it should be. 

The total investment in Iran by China is estimated at a paltry $162 million in 2022,  the commitment made under the 2021 agreement was $400 billion over a period of 25 years. One of the reasons cited for the same is that China does not want to violate US sanctions. China has been Iran’s largest trading partner for the past 10 years.

The other point to be borne in mind is that China has cultivated strong security and economic ties with many Gulf Cooperation Council (GCC) states including – Saudi Arabia, UAE, Kuwait. During his visit to Saudi Arabia, in December 2022, after his meeting with leaders of GCC states a joint statement was issued which made reference to three disputed islands between UAE and Iran. Said the statement:

“ The leaders affirmed their support for…all endeavours of the United Arab Emirates to reach a peaceful solution to the issue of the three islands; Greater Tunb, Lesser Tunb, and Abu Musa, through bilateral negotiations in accordance with the rules of international law…”

Iranians took strong exception to this statement, and the Iranian Foreign Ministry summoned the Chinese envoy in Tehran. The Chinese envoy told Iranian officials that China respects Iran’s territorial sovereignty.

Here it would also be important to point out that there has been opposition to the 25-year agreement signed between Tehran and Beijing in 2021. In spite of the anti-US sentiment, Iranians are not in favor of increasing dependence upon China.

While there is no doubt that after the US withdrawal from the JCPOA in 2018, Tehran has moved closer to Beijing, it is important to bear in mind that despite all the rhetoric and lofty promises made by China, economic ties have remained modest apart from China’s purchase of oil from Iran. Beijing while wanting to improve ties with Iran and leverage the strains between Washington and Tehran is not keen to violate US sanctions and it does not want to cultivate Iran at the risk of offending GCC states. 

[photo by Tasnim News Agency]

The views expressed in this article are those of the author and do not necessarily reflect TGP’s editorial stance.

Assyrians are Already Persecuted in the Middle East, and Host Nations Must Guarantee Their Safety

On April 15th, 2024, the Assyrian community of Sydney, Australia, suffered a shocking and malicious hate crime, as a leading bishop, Mar Mari Emmanuel,...

People’s Revolutions: More Than the Will of the People

The French Revolution, the Russian Revolution, the Iranian Revolution, and many other historical turning points. We were taught that they were primarily due to...

The Russian Bear Claws and Paws for Strategic Momentum

As the conflict in Ukraine extends into its successive phases, both Russia and Ukraine are caught in a complex web of military maneuvers, geopolitical...