Table of Contents
China Iran Deal
- China and Iran are close to sealing an ambitious deal worth $400 billion, on economic and security partnership.
- The deal will likely eclipse the China-Pakistan Economic Corridor, a project that symbolizes the geopolitical ties between the two countries.
The Details of the Deal
- An unverified 18-page document with details of the proposed agreement was leaked.
- China will get access to supplies of crude oil and gas from Iran at discounted prices for the next 25 years.
- The deal was originally proposed in January 2016 by Chinese President Xi Jinping during his trip to Iran.
- Talks on the agreement are thought to be in the final stretch.
What does Iran gain?
- According to the leaked document, China will invest –
- $280 billion in Iran’s oil and gas industry
- $120 billion in production and transportation infrastructure.
- Develop 5G infrastructure
- Invest in banking, telecommunications, ports, railways and dozens of other sectors.
Port Development
- The deal will include a major port development project on the Strait of Hormuz
- Bander-e-Jask?
China and Pakistan
- CPEC has been the crux of Pakistan’s efforts to develop its infrastructure in past 5 years.
- The value of CPEC projects is worth $62 billion as of 2017.
- Once the port at Jask is operational, Pakistan’s port of Gwadar on the Arabian Sea will lose its unique strategic value to China.
Which will be a better partner for China ? Iran OR Pakistan
No effect on CPEC?
- China –Pakistan Political relations are old and strong
Pakistan has direct access to Xinjiang
Military Aspects of the Iran China Deal
- It calls for joint training and exercises, joint research and weapons development, and intelligence sharing to fight the lopsided battle with terrorism, drug and human trafficking and cross-border crimes.
- Initial reports in Iran have suggested China will deploy 5,000 security personnel to protect its projects in Iran.
- Some reports suggest Kish Island in the Persian Gulf, located at the mouth of the Strait of Hormuz, maybe “sold” to China.
India’s Concern
- What is alarming for India is that China will also be concluding a security and military partnership with Tehran.
- Control over the strategic straits of Hormuz.
- Initial signs – Iran’s decision to pursue 628 km Chabahar-Zahedan railway line by itself.
- India effectively shut out of Central Asian trade
Latest Burning Issues | Free PDF
WhatsApp