Context:
- Iran and China have quietly drafted a sweeping economic and security partnership that would clear the way for billions of dollars of Chinese investments in energy and other sectors.
Details:
- Vastly expand Chinese presence in banking, telecommunications, ports, railways and dozens of other projects.
- Receive a regular and heavily discounted supply of Iranian oil over the next 25 years.
- Deepening of military cooperation
- Giving China a strong presence in the region, which has been the foothold of the USA.
- Calls for joint training and exercises, joint research and weapons development and intelligence sharing.
Potential impact:
- Major decline in the relationship of USA and China.
- Will also affect Indian investment in Iran at Chabahar port, as China will have upper hand in the saying of administration in Iran.
- Major blow to the Trump administration’s aggressive policy toward Iran since abandoning the nuclear deal reached in 2015.
Reference: https://www.thehindu.com/todays-paper/tp-international/china-iran-close-to-reaching-trade-and-military-partnership/article32061692.ece
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