Iranian economist: 'China is the worst business partner Iran ever had'

[Surenas]

Iran pays a high price for cheap Chinese products

Iranian headlines pertaining to the poor quality of Chinese imports are becoming less seldom by the day. Not long ago, a news agency reported that in addition to harmful and even lethal substances in Chinese products such as children's toys, shoes, fertilizer and medicine, harmful smog in Tehran could also be traced back to hazardous materials used in products imported from China. An ongoing investigation by standard control authorities found traces of up to 30 percent of asbestos in brake pads from China.

Carcinogenic traffic

Tiny asbestos particles are released when drivers hit the brakes in their cars. "These particulates get into the air and are inhaled into the lungs, where they cause damage," lung specialist and deputy CEO of the German Lung Association Prof. Dr. Adrian Gillissen told DW. "As long as the asbestos is in something solid, it is harmless. But it becomes harmful when fibers are released into the environment. This happens in certain weather conditions and because of friction caused by the mechanics of brakes."
"The risk of cancer increases if a large amount of fibers is inhaled."

Being in traffic in Tehran can cause cancer

Gillissen explained why asbestos were particularly harmful to the human body: "Asbestos is very resilient - the body's defense cells have great difficulty getting rid of the substance." Thus the particles accumulate inside the body over long periods of time and trigger chronic inflammatory reactions in the lungs that can result in the formation of cancer or scar tissue.

Weather conditions were a further factor, he explained: "The cancer risk is much lower when there is wind and rain, as the particulates are then washed away. But when there is no wind, thick smog forms in cities such as Tehran and the exposure to the substance is far greater." He added that it was especially dangerous for children.

The production and the use of asbestos brake pads have been completely banned in the EU since the 1990s. And while there is also regulation for the production and import of products containing asbestos in Iran, it doesn't always seem to be bided by.

Quality dependent on import country

Iran is China's third largest provider of oil. Sanctions against Iran have led the country to increase trade with China. In May, 2011, an unprecedented agreement was signed by Tehran and Beijing which stated that Iran would receive 40 percent of its oil revenue in Chinese yuan and of that, 60 percent would be spent on Chinese imports.

"Iran basically lost control over its free choice of imports with that agreement," according to EU economic advisor Mehrdad Emadi. "A number of provisions and import restrictions which had been introduced up to that point then basically became invalid," Emadi explained.

Meanwhile, Chinese companies have created a ranking system for their exports. The products can be placed in categories ranging from A to E. A and B products are exported to countries with strict regulations and controls.

Brand names seeking to secure their market position know how quality can impact sales. "Chinese manufacturers are certainly aware of the fact that if they deliver poor quality products to European countries and European authorities find out, that no one will buy their products," Daniel Krahl, of the German Institute for International and Security Affairs (SWP) told DW.

Iranian people pay the price

Around 90 percent of Chinese products imported to Iran are categorized as C, D or E products - products, which for health reasons, are banned in many countries, including countries belonging to the EU.

"China can produce just about everything ranging from top-quality to bottom-of-the-line products," Krahl said. "What is exported from China in the end depends solely on the price and regulation in import countries."

Chinese companies, according to Krahl, do not hold themselves accountable for the quality of their products. Instead, they believe the authorities of import countries are responsible. That means Iranian authorities need to become active in stepping up import controls and improving standards if they are to stop poor quality Chinese products coming into the country. With regard to the agreement with Beijing, on the other hand, that doesn't seem likely to happen: "Chinese companies know that Iran doesn't have many alternatives because of the sanctions and the country's general economic situation."

Ticking bomb

Economic advisor Emadi said he was worried about the status quo of the Iranian market, which is dominated by bottom-of-the-barrel Chinese products. "Chinese companies do not have to worry about being subjected to quality controls. And that's why massive amounts of cheap and dangerous products, which are otherwise banned in most other countries, end up with Iranian end-consumers."

Last year, Mehrdad Emadi was confronted on numerous occasions by medical experts and scientists from Iran over this "worrisome situation."

"The mass import and consumption of carcinogenic products is like a ticking time bomb which in the coming years will have grave, widespread effects."

Iran pays a high price for cheap Chinese products | Asia | DW.DE | 24.01.2013

 

[Chinese-Dragon]

So you call your own Government a regime - interesting.
Unfortunately the problems between Iran and the West go much deeper than uranium enrichment and the illness emanates from the tumor that is Israel. Instead of lamenting that the West will not sell you their products, Iranians should roll up sleeves and take the destiny of Iran into their own hands. Compromising for scraps from the West is a poor choice.

Surenas is a very big opponent of the Iranian "regime" in his own words.

Sort of like Sonyuke and Lightningbolt who hate the CCP (but who are both very strong Chinese patriots).

 

[rcrmj]

Lets keep the trade only limited to oil/gas exports. We don't need your crappy low-quality products. There is already enormous frustration in Iran (even among officials) about Chinese quality and professionally.*

I think there is a consensus that western countries have much higher desire for quality goods than primitive India and sanctioned Iran right?

and not only the primitive India and isolated Iran is buying awful loads from China but western countries too... my 10 years London life could only be described as lived in London geared with Chinese kits, and I like luxury life style by the way``

so, don't blame the seller who gives your the '$hity' goods, blame your shallow wallet that makes you at the bottom of the consumption chain

 

[Surenas]

I think Iran should give up give up the 20 % enrichment, and also be willing to be flexible on the heavy water reactor (which is plutonium route). That way, it would be very far away nuclear weapons.
In exchange we should get substantial sanctions relief. Maybe not all sanctions, but they would have to be significant.

I think 3-5 % enrichment is not on the table. Remember we paused even that for two years, when Khatami was president.
And on other political and strategic issues like Afghanistan we assisted. We got no lifting of sanctions at that time.

So if there is no lifting of sanctions on such a deal, then it is absolutely 100 % clear that the issue is not nuclear.
Would you agree?

Yes, sanctions removal should al least include an end to the oil blockade of EU-countries, an end to blocking Iran from SWIFT, gold trade, etc.

If they are not willing to lift these sanctions the problem is indeed more than Iran's nuclear program. But I don't believe thats the case right now.

 

[+4vsgorillas-Apebane]

You seem to have little knowledge about all those sanctions targeted Iran and the consequences attached to it. Nobody WANTS to buy those low-quality products. We are forced to do so because we have to materialize our oil money (yuans) stalled in Chinese banks.

Then stop selling oil to China! That way you don't have to accept Chinese Yuan!
Business my Iranian friend is agreed on mutually by both parties. If the deal is so poor, then dont accept. Dealing with Iran invites a certain stigma (unwarranted) that Chinese are willing to shrug off but many other countries are unwilling to. Maybe instead of complaining about Chinese products, you should be thankful that Chinese will trade with anyone and you have access to a large portion of the world economy through China?

 

[Surenas]

so, don't blame the seller who gives your the '$hity' goods, blame your shallow wallet that makes you at the bottom of the consumption chain

This accusation would only be true in a ideal market situation, but the thing is that Iran's economic situation is far from ideal. Like I said, we are somehow forced to buy these products from China, since that is the only way to materialize all that oil money (in the form of yuans) in Chinese banks.

 

[Chinese-Dragon]

So if there is no lifting of sanctions on such a deal, then it is absolutely 100 % clear that the issue is not nuclear.
Would you agree?

The issue is that both the USA and Israel do not want Iran to rise as a regional power.

Nuclear issue is BS, look at Iraqi non-existent WMD which earned them an invasion, or North Korean nukes which are real yet America did not invade them.

And sincerely, good luck with that issue. As much as Iranians seem opposed to Chinese trade, I will always dislike America more. If you can face down the Americans then good luck to do you.

 

[Surenas]

Then stop selling oil to China! That way you don't have to accept Chinese Yuan!
Business my Iranian friend is agreed on mutually by both parties. If the deal is so poor, then dont accept. Dealing with Iran invites a certain stigma (unwarranted) that Chinese are willing to shrug off but many other countries are unwilling to. Maybe instead of complaining about Chinese products, you should be thankful that Chinese will trade with anyone and you have access to a large portion of the world economy through China?

Like you should be thankful of Iran providing the necessary energy to China, which has helped your economy growing over the years? Nobody should be thankful when it comes to trading.

 

[Chinese-Dragon]

Like you should be thankful of Iran providing the necessary energy to China, which has helped your economy growing over the years? Nobody should be thankful when it comes to trading.

Saudi Arabia (and the Gulf) offered us discounted oil to make up for any shortfalls from Iran. That oil does not come with any stigma or sanctions either.

So we are in fact losing money. China is betting that being friendly with Iran now, will pay off in the long-term, when Iran becomes more powerful.

Maybe a bad bet. But that's life, you win some and you lose some.

 

[rcrmj]

This accusation would only be true in a ideal market situation, but the thing is that Iran's economic situation is far from ideal. Like I said, we are somehow forced to buy these products from China, since that is the only way to materialize all that oil money (in the form of yuans) in Chinese banks.

let me refresh the point to your bell-end again.

in the real world people get for what they pay, you have the primitive India and Russia too for daily necessary goods in the case of western sanction. and why not buying from them? a hint 'industrial competitiveness'

and also in real world, China exports $400 billion worth of high tech goods to developed, rich middle east and South American countries A year, if Iran likes it we can spare few for the sake of friendship and political 'affiliation' !

crystal now?

 

[Surenas]

Saudi Arabia (and the Gulf) offered us discounted oil to make up for any shortfalls from Iran. That oil does not come with any stigma or sanctions either.

So we are in fact losing money. China is betting that being friendly with Iran now, will pay off in the long-term, when Iran becomes more powerful.

Maybe a bad bet. But that's life, you win some and you lose some.

Iran is already giving you discounted oil. There have been many reports about this.

China is not thinking in the long-term; if it was, it wouldn't have missed the opportunity to act like a mature and reliable trading partner.

 

[+4vsgorillas-Apebane]

Like you should be thankful of Iran providing the necessary energy to China, which has helped your economy growing over the years? Nobody should be thankful when it comes to trading.

Its business my Persian friend, we do it for mutual benefit.
Its fortunate for you that China is impervious to Western criticism and also a permanent position in the security council as the only non white member. Without Chinese counterbalancing the west on behalf of China and the developing world (including your country), you might not have anyone worthwhile to trade with at all. You can try our mighty superpower neighbor to the south west - your oil for their iron ore, bananas and spice.

 

[Chinese-Dragon]

Its business my Persian friend, we do it for mutual benefit.
Its fortunate for you that China is impervious to Western criticism and also a permanent position in the security council as the only non white member. Without Chinese counterbalancing the west on behalf of China and the developing world (including your country), you might not have anyone worthwhile to trade with at all. You can try our mighty superpower neighbor to the south west - your oil for their iron ore, bananas and spice.

If Iran screws us on trade then it was our own fault for choosing the wrong trading partner. Luckily Saudi Arabia's offer is still open.

Iran is already giving you discounted oil. There have been many reports about this.

China is not thinking in the long-term; if it was, it wouldn't have missed the opportunity to act like a mature and reliable trading partner.

Mature? We are not the one being sanctioned by the entire world?

And the offer from Saudi Arabia and the Gulf could NOT possibly have been more expensive than Iranian oil. Since the entire purpose of their offer was to get us off Iranian oil.

And they can surely afford to give us a better deal than Iran.

 

[Surenas]

If Iran screws us on trade then it was our own fault for choosing the wrong trading partner. Luckily Saudi Arabia's offer is still open.

Nobody is stopping you from accepting that offer. Just don't be mad when the Straight of Hormuz is closed one day and missilies are falling on Saudi's oil fields. In the Middle East the situation can be completely different the next day.

Do you have a source that Saudi oil is cheaper than Iranian oil?

 

[Chinese-Dragon]

Nobody is stopping you from accepting that offer. Just don't be mad when the Straight of Hormuz is closed one day and missilies are falling on Saudi's oil fields. In the Middle East the situation can be completely different the next day.

No it won't.

The issue is not nuclear but geopolitics. America will never give up Israel and the Gulf states for Iran. Never.

They'll be nice to you, you'll give up your nuclear program, and they will be right back on you.

Do you have a source that Saudi oil is cheaper than Iranian oil?

China and Saudi Arabia are the two countries with the largest Current account surpluses in the world. They can afford to give us a better deal, and we can afford to pay for it. It's not a problem for either side.