Context:

• China and Iran is finalising a deal of worth $400 billion dealing with investment in railway, ports, energy sector for a period of 25 years.

China – Iran Partnership:

• Long term strategic partnership
• Discussion started back in 2016.
• Chinese service:
  • 5G services
  • Provide Own GPS services
  • Develop free trade zones
• Iran will play a crucial role in Chinese Belt and Road Initiative.

Consequences:

• Already China has tied up with Russia to make a multipolar world. Iran has joined this bloc too.
• Could attract punitive measures from the U.S. against China.
• Enhance the resilience of Iranian economy, develop its infrastructure.
• Direct challenge to the US hegemony.

Indian Concern:

• Recently, India was dropped from a Chabahar railway project.
• Signifies, the declining influence of the India in Middle East.
• Strengthening of the string of pearls around India.

Reference: https://www.thehindu.com/news/international/analysis-china-making-deep-inroads-into-iran/article32081851.ece

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