Iran and China have reached an encouraging agreement that is now in the eyes of the world. This strategic and trade agreement between the two countries will be valid for the next 25 years. However, just days after the deal, news broke on Tuesday that Iran had separated India from the Chabahar rail project.
Tehran has cited delays in receiving funding from India as the reason. Four years ago, Iran and India agreed to lay a railway line from Chabahar to Zahedan on the Afghan border. Now Iran has decided to complete the project on its own and has begun work on it.
According to the New York Times, under the 400 billion deal, Iran will supply crude oil to China at very low prices for the next 25 years, in return for which China will invest heavily in Iran.
The two countries have quietly signed the agreement at a time when the world is facing a covid-19 pandemic.
Experts believe that this agreement will have an impact not only on the United States but also on the entire world, including India.
“The two ancient Asian cultures are two allies with similar views in the fields of trade, politics, culture and security. Many countries with common bilateral and multilateral interests, China and Iran, consider each other as their strategic allies,”
China will invest 280 billion in Iran’s oil and gas industry.
The Chinese side will also invest 120 billion in developing production and transportation infrastructure in Iran.
Iran will regularly supply crude oil and gas to China at very affordable prices for the next 25 years.
China will help develop 5G technology infrastructure in Iran.
China will increase its participation in large-scale banking, telecommunications, ports, railways and dozens of other Iranian projects.
The two countries will conduct joint military exercises and research under mutual cooperation.
China and Iran will build weapons together and share intelligence with each other.
How will this agreement benefit both countries ?
Talmiz Ahmed, an expert on the Middle East and India’s ambassador to the Gulf, believes the agreement is important in many ways for both China and Iran.
Foreign investment in Iran has almost stopped due to US sanctions. In such a scenario, foreign investment, technology and development in Iran could gain momentum because of China. On the other hand, China, the largest importer of crude oil, will get oil and gas from Iran at very cheap rates.
In addition, China’s position on defense is very strong. So China can help Iran either through defense products or through strategic capabilities.
On the other hand, Iran is important to China because it can help make its ‘One Belt One Road’ project a success.
What effect will this have on India ?
Experts believe that the agreement between China and Iran could be a setback for India as well.
Due to US sanctions, India has almost stopped importing oil from Iran, which until a few years ago was a major supplier of oil to India.
In addition, India will face the loss of Chinese investment in Iran. India wants to develop the Chabahar port in Iran and is believed to be the answer to the Gwadar port in Pakistan. Chabahar is also important for India in terms of trade and strategy. In such a scenario, China’s presence would create difficulties for Indian investment.
Because of this agreement, the situation for India could be similar to that of the United States, Israel and Saudi Arabia vs. Iran. And how difficult will it be for India ?