From Ladakh to South China Sea, China is facing criticism from many countries for its aggressive expansionist policy. China, which is isolated in the international community, has now started strengthening its relations with Iran in the Middle-East. There are many similarities between the two countries and their interests are also complementary to each other.
Both China and Iran are in conflict with America. While China is a big energy market and prosperous, on the other hand Iran is a big exporter of energy going through the economic crisis. Both China and Iran are facing US sanctions, in which case both countries are taking their partnership to a new level through a $ 400 billion deal for 25 years.
According to a New York Times report, the $ 400 billion megadial between Iran and China is in the final stages. Under this agreement, China will increase its presence in Iran through investments in banking, telecommunications, ports, railways and many other areas. On the other hand, Iran will continue to sell its oil to China for 25 years at very low prices.
In May 2018, US President Donald Trump imposed strict sanctions on Iran, separating the US from the nuclear deal with Iran. This made it difficult for Iran to sell oil to other countries. India used to buy most oil from Iran but after US sanctions, it also started cutting. Now with the huge investment of China, Iran will be able to bail out its economy.
At the same time, this agreement will enable China to strengthen its strategic position in Middle-East Asia, where the influence of America has been since the second world war.