New Delhi: Two weeks since India banned Chinese Apps, Beijing has composed a thunderstruck deal with India’s ally and America’s foe – Iran. The two countries will end up signing a $400 billion economic and security strategic partnership deal.
The 18-page agreement of a multi – billion dollar deal will be inscribed for 25 years.
Once signed, China can invest in not just in one or two sectors but across the Iranian economy including banking, telecommunications, ports and railways sectors. More than a dozen projects will go to Chinese companies.
Beijing in return will receive oil at a heavily discounted rate for 25 years.
The deal reportedly includes joint training and exercises, joint research and weapons development, even intelligence sharing as part of the agreement.
Chabahar port is seen as India’s counter to the Gwadar port in Pakistan that is part of China’s Belt and Road initiative(BRI). The port may lose its relevance with China investing in Iran.
The Iran-China agreement reportedly has not been submitted for Parliament’s approval yet and hasn’t been made public. China hasn’t shared the details of the deal yet as well. However, Iran is not hiding the fact that it is negotiating the agreement with China. On July 5, Iran’s foreign minister Javad Zarif indicated about the deal.
India and Iran have enjoyed a close relationship. India was one of the biggest buyers of Iranian oil but New Delhi stopped buying oil from Iran in 2019 after the United States slapped sanctions against Iran and refused to grant any waivers to India.