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GEOPOLITICAL AND ECONOMIC FACTORS OF COOPERATION
BETWEEN CHINA AND IRAN IN THE MODERN WORLD
Abdulkhaev Abdurashid
Researcher at at Tashkent State University of Oriental Studies
https://doi.org/10.5281/zenodo.15671397
Annotation:
This article examines the geopolitical and economic factors
driving the strategic partnership between China and Iran in the modern world. It
analyzes their mutual interests in strengthening political, economic and cultural
ties to counter Western influence and achieve national goals amidst a shifting
global order. The article highlights the key role of economic cooperation, with
Iran serving as a vital energy source and investment destination for China, while
China provides Iran with a stable trade partner and strategic investor. It also
explores the geopolitical dimensions of Sino-Iranian collaboration in the context
of China's expanding influence in the Middle East and Iran's resistance to
Western pressureFinally, it assesses the impact of US foreign policy in pushing
China and Iran closer together, and the prospects for their partnership within
China's "Belt and Road" initiative.
Key words:
China, Iran, strategic partnership, geopolitics, economic
cooperation, energy, investment, Middle East, US foreign policy, Belt and Road
Initiative
Main part. In the 21st century, relations between China and Iran have
acquired a strategic character, conditioned by their mutual interest in
strengthening political, economic, and cultural ties. Both states, striving to
preserve their sovereignty and resist Western influence, view cooperation as an
instrument for achieving national interests under conditions of a changing world
order. Iran, possessing abundant hydrocarbon reserves, and China, actively
developing its economy and implementing the "Belt and Road" initiative, have
found points of convergence that contribute to creating a solid foundation for
their interaction.
Beijing and Tehran also diverge regarding the military-political situation in
the Middle East. China's relations with Israel are extremely important, so Beijing
does not want Iran to destabilize the region. China is concerned about a new war
in the Middle East—between Iran and Israel or between Iran and the United
States. The security of energy sources in the Middle East would be threatened
and could lead to unpredictable oil price increases. China does not want Iran to
support non-state actors that contribute to regional instability and conflicts.
China also dislikes the level of hostility between Tehran and Washington.
However, Beijing prefers to see "managed" hostility between the IRI and the
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United States. Under conditions of managed hostility, Iran will continue to need
China's support.
The following characteristics of the emerging world order can be identified,
which largely determine the logic of actors' behavior under new conditions:
1.The emerging world order represents an unstable, flexible, mobile system
whose exact composition of actors cannot be determined.
2.The heterogeneity and multidirectional nature of actors condition their
unpredictability and multiple variants of different foreign policy narratives.
3.The general instability of the world political system intensifies interest in
seeking common paths of positive interaction among emerging centers of power.
The foreign policy course of the United States has largely predetermined
the further rapprochement between China and Iran. The states are forced to
overcome the consequences of the collective West's policy, which seeks to
subordinate them to its will and economic interests.
Chinese-Iranian trade turnover is characterized by stable growth. During
the period 2005-2013, trade showed growth from $10 billion to $39 billion.
Despite slight decreases in trade volumes in 2009 and 2012 related to
international sanctions, overall trade turnover continued to grow. In 2014, trade
between the parties reached its maximum, amounting to $52 billion USD,
followed by a decline in trade turnover, with growth observed since 2017.
The parties place great hopes for the development of Chinese-Iranian
cooperation in connection with the implementation of China's "Belt and Road"
project. This Chinese initiative aims to create and develop new and existing
trade routes, transport corridors, and activate multilateral trade and investment
projects. In perspective, the "Belt and Road" will connect more than 60 countries
in Central Asia, Europe, and Africa and bring the sphere of trade interaction
among project participants to a new level.
Iranian authorities welcomed the Chinese initiative with approval, and in
2016, during Xi Jinping's visit to Iran, 17 bilateral agreements were concluded,
including a contract for the construction of nuclear power plants and long-term
supplies of Iranian oil to China. The parties agreed on expanding trade and
economic cooperation over the subsequent 25 years, as well as increasing trade
turnover over a ten-year period.
According to the PRC Ministry of Foreign Affairs, Beijing and Tehran are
ready for constructive dialogue to resolve important regional issues and are
strengthening coordination of mutual positions for implementing projects under
this international initiative. The Iranian side expresses Tehran's interest in
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developing comprehensive strategic partnership relations with Beijing,
particularly in the joint implementation of the "Belt and Road" initiative.
China's foreign policy strategy toward Iran prioritizes economic
cooperation while consistently distancing itself from the consequences of
regional conflicts and contradictions. In confirmation of this thesis, one can
emphasize Beijing's refusal to participate in the Astana negotiation process on
the Syrian problem in 2018, despite Tehran's initiative to expand the format.
Chinese leadership does not wish to assume obligations for resolving the armed
conflict in Syria. Additional evidence is the PRC's position regarding the Iraqi
crisis. China, being the largest investor in Iraq's oil and gas sector, refrained
from direct military confrontation to protect its economic interests. Notably,
Iran assumed the function of ensuring the security of Chinese investments in
Iraq. Chinese-Iranian relations are characterized by a pragmatic approach that
ensures support for Tehran's position on disputed international issues.
The strategic significance of the Middle East for the PRC's energy security is
determined by the following factors: geographical proximity, concentration of
65% of world oil reserves and 30% of natural gas, economic efficiency of
extraction and transportation of energy resources. In this context, cooperation
with the Islamic Republic of Iran is considered of particular significance, as it
occupies the second position after Saudi Arabia in terms of oil production
volumes in the region and possesses 9% of world oil reserves and 16% of
natural gas.
Iran's geostrategic position determines its key role in implementing
initiatives for forming transcontinental corridors. In September 2013, during the
Central Asian round, PRC Chairman Xi Jinping announced the "Silk Road
Economic Belt" project, and in October of the same year, the "21st Century
Maritime Silk Road" was presented in Indonesia. Iran's potential as an
integrating transport and logistics hub, linking maritime routes of the Persian
Gulf with overland corridors through Central Asia to the ports of the Strait of
Hormuz, conditions the PRC's strategic interest in deepening bilateral
cooperation within the framework of these projects.
The PRC leadership pursues a cautious foreign policy, striving to balance
relations with Iran and maintain constructive interaction with the United States
and Western partners. The PRC's policy toward Iran represents a characteristic
example of allied cooperation with states adopted in American foreign policy
rhetoric as "rogue states." This term, which has gained wide circulation in the
unofficial discourse of the United States and its allies over the past twenty years,
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is applied to states considered as threats to international security. In official
American terminology, the formulation "state sponsors of terrorism" is used.
Chinese leadership, recognizing the risks of deteriorating relations with the
United States through active cooperation with such states, adheres to a balanced
foreign policy course toward Iran.
Under conditions of international sanctions, China implemented a
differentiated dynamic of energy cooperation with Iran. While maintaining
volumes of Iranian oil imports at reduced prices, the PRC provided Tehran with
special economic stability. At the same time, China, guided by principles of
pragmatism and risk diversification, focused on increasing purchases of cheap
energy resources and establishing interaction with alternative suppliers,
including Saudi Arabia.
Tehran's displeasure was quite restrained. When China voted for UN
Security Council resolutions №1737 (ban on supplies of nuclear technologies
and materials to Iran) and №1747 (tightening of sanctions and introduction of
new ones), the IRI leadership refrained from criticizing the PRC, understanding
that under conditions of international isolation, it could not present any claims
to the country that was the main buyer of Iranian oil. In July 2015, the PRC
became one of the six participants (Group 5+1) in the international agreement
with the IRI regarding Iran's nuclear program—the Joint Comprehensive Plan of
Action (JCPOA). However, in 2018, U.S. President D. Trump announced the
unilateral U.S. withdrawal from the JCPOA. Under these conditions, cooperation
with the PRC acquired special significance for Iran.
Conclusion. Based on the above, the following conclusions can be drawn:
1.: The PRC's foreign policy strategy toward Iran is determined by economic
interests and concentrates on two main directions: ensuring energy security and
developing corridors within the framework of the "Belt and Road" initiative.
This approach presupposes China's readiness to interact with states under
international sanctions while decisively maintaining constructive relations with
the United States and their Western allies. Chinese leadership is oriented toward
obtaining primarily material benefits from developing cooperation with Iran.
2.: Bilateral cooperation is characterized by complementarity of interests in
economic, energy, infrastructure, and military-technical spheres. Iran ensures
stable energy supplies and access to resource development sites, which
corresponds to the PRC's policy interests in ensuring energy security. China's
foreign policy strategy aims to avoid direct confrontation with such a strong
opponent and places emphasis on the country's economic rise through
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developing partnership relations with the maximum number of actors. Bilateral
relations not corresponding to the level of alliance formation create a new
center of power in the regional architecture, which does not enter into Beijing's
strategic tasks.
3.The political interaction of the parties is primarily connected with mutual
unwillingness to see the strengthening of the United States and its allies in the
region; however, Beijing will not take decisive steps. The PRC's foreign policy
doctrine aims to prevent direct confrontation with global powers, focusing on
potential development through expanding partnership relations with the
maximum number of international actors. Beijing sees no contradiction between
criticizing the unipolar world and continuing economic cooperation with U.S.
allies on a global scale.
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