Iran and China sign cooperation agreement

29 March 2021
Tehran and Beijing will cooperate across a range of key economic sectors

Tehran and Beijing have signed an Iran-China comprehensive cooperation document that aims to promote economic and cultural ties between the two countries.

The document was signed in Tehran on 27 March during a meeting between Iranian Foreign Minister Mohammad Javad Zarif and his Chinese counterpart Wang Yi.

It has been reported that China has agreed to invest $400bn in Iran over 25 years in return for oil supplies.

In 2015, Iran and China issued a joint comprehensive strategic statement, and the two sides agreed to conclude with a comprehensive cooperation document. An 18-page draft of the document was leaked last year. It covered cooperation across a range of key sectors such as energy, petrochemicals and nuclear power. It also referred to the high-tech and military sectors as well as maritime projects to promote Iran’s role in China’s Belt and Road Initiative.

Chinese companies had shied away from the Iranian market following Washington’s decision to reimpose sanctions on Iran in 2018. In 2019, China National Petroleum Corporation (CNPC) pulled out of the $4.8bn South Pars phase 11 gas project.

Chinese involvement in the Iranian economy will be a welcome boost for Tehran.

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