Iran to benefit from long-term co-op with China - Chamber of Commerce

Commentary Materials 6 July 2020 15:42 (UTC +04:00)
Iran to benefit from long-term co-op with China - Chamber of Commerce

TEHRAN,Iran, July 6


Iran's trade ties with China and the 25 year cooperation agreement would positively affect Iran's economy, head of Iran – China Chamber of Commerce Majid Reza Hariri told Trend.

Iran has been negotiating a 25-year accord with China and the terms will be announced once a deal is struck. Some MPs in Iran's parliament expressed concern over the agreement, in particular regarding Iran's benefits in the deal. Meanwhile, China is a key market for Iranian crude exports, which have been severely curtailed by the US sanctions.

Hariri pointed out that with Iran's natural reserves, an expansion of presence at international markets would showcase the Islamic Republic's capacities.

"China is Iran's biggest customer that consumes our products so it's natural that major part of trade between the two countries is related to energy and mineral sources. Iran and China's relation is economic and the 25 years cooperation agreement between the two countries is not political," he added.

The Iranian cabinet has approved the final draft of the 25-year roadmap for Iran-China strategic relations during a regular meeting on June 21. The document outlines a vision for long-term cooperation between the two countries in various sectors.

"Saudi Arabia and the UAE have more economic relations with China than Iran, and our country is China's third trade partner in the Middle East," he said.

"Iran and China's economies are compatible and aren't related to political issues. Iran's ties with Russia are good, but the trade has never been more than $2-3 billion because our economies are too different, so the trade couldn't be increased," he said.

Hariri said that Iran's calculated move is beneficial because China is looking to become the world's economic super power in the long term.

"Economic relations should never be undermined by political issues. China is currently working on development of many fields in Iraq, including country's oil reservoirs and it is the biggest customer of Saudi Arabia's oil and their relations have never become political," he added.

"Any international event would have advantage for Iran, since the country is under sanctions, so any extra benefit would be good for the country's economy," Hariri said.