Few people remember that Iran and China signed the comprehensive strategic partnership in 2016, which will “work” for 25 years!!!
Moreover, few people know that the “comprehensive strategic partnership” China and Iran has been updated so that it, among other things, will include:
Chinese investments in Iran in 280 billion dollars on the development of oil, gas and petrochemical sectors.
Plus, China assumes a five-year period of the deal to invest another $ 120 billion in transport and industrial infrastructure of Iran.
Plus, the Chinese company will receive the first voice in the bidding for any new, unfinished or halted developments in the field of oil and gas.
Plus, Chinese firms will also be the first voice about the opportunity to participate in any projects in the petrochemical sector of Iran.
Under the terms of the new agreement, China will have the right to delay payment for Iranian exports for up to two years and China in addition to the use of the yuan, will be able to pay in the currency he accumulated from doing business in Africa and the former Soviet Union, including the Ruble. As you probably have guessed, all this means that US dollars will not be used in these payments for commodity transactions between China and Iran.
“Given the exchange rates associated with the conversion of soft currency to hard currency, which Iran can obtain from their friendly Western banks, including Europäisch—Iranische Handelsbank [in Germany], Oberbank [in Austria] and Halkbank [in Turkey], China is considering another discount of 8-12 points [relative to the dollar prices for secondary targets], which means a discount of up to 32 points for China on all purchases of oil, gas and petchems,”says the source.
Another positive factor is that the close involvement of China in creating the industrial infrastructure of Iran will fully comply with its initiative of “One belt and one road”. China intends to use cheap labor available in Iran for the construction of plants, designed and controlled by a major Chinese production companies, with identical specifications in China.
The resulting products can enter Western markets via the routes constructed or reinforced by the growing participation of China in the transport infrastructure of Iran. When the draft agreement was submitted in late August, Supreme leader of Iran, Ali Khamenei, Vice-President of Iran eshaq Jahangiri and senior officials from the Ministry of economy and Finance, Ministry of oil and the Islamic revolutionary guard Corps—he announced that Iran has signed a contract with China for the project for the electrification of the main 900-kilometer railway linking Tehran with the North-Eastern city of Mashhad.
Jahangiri added that it also planned to create high-speed rail line Tehran-Qom-Isfahan and extend this upgraded network to North-West, via Tabriz, which is home to a number of key oil, gas and petrochemical facilities, as well as the starting point for the gas pipeline Tabriz-Ankara, which will be the reference point of the new silk road with a length of 2300 km, and which links Urumqi (the capital of Western Xinjiang province of China), Teheran, joining along the way, Kazakhstan, Kyrgyzstan, Uzbekistan and Turkmenistan, and then across Turkey to Europe.
It should be noted that “pipeline plan” will require the participation of Russia, because until recently Russia weighed the same Autonomous comprehensive deal with Iran. So, according to the source, the agreement contains a clause that allows at least one Russian company to have the same preferential terms, and China.
“To avoid any further increase of sanctions and encourage US to return to the negotiating table—Iran on their side now has two of the five votes in the UN security Council. The fact that Zarif unexpectedly appeared at the G7 summit in August at the invitation of France, could mean that Iran is on the side there is another permanent member of the UN Swobs,” said the Iranian source.
China agreed to increase imports of Iranian oil, spit on US sanctions, and according to the General administration of Customs of China (GAC), published at the end of August, China is far from cutting its Iranian imports.
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