New details of Iran-China 25-year cooperation pact

[Muhammed45]

Khorasan newspaper.

Finally, the Khorasan newspaper wrote in a report that it had obtained information about the 25-year strategic cooperation document between Iran and China, which is completely contrary to some claims and negative rumors surrounding it. According to credible information, the document is officially registered as a "Comprehensive Cooperation Program between Iran and China" and covers political, security, defense, cultural, agricultural, economic, scientific, tourism, oil and energy, telecommunications infrastructure and communication technology, trade. Includes health, wellness, etc.

Some clauses talk about facilitating investment and finance, and some clauses talk about mutual political support in international forums. In the military and defense fields, there are issues such as training, transfer of defense technologies, fight against terrorism, and joint exercises. One of the most important points of this document is the agreement on trade in national currencies. The document also repeatedly mentions China's "One Belt-One Road" project (a Silk Road project) and the fact that Iran can actively participate in the global project, as well as the economic benefits and the loan fund To benefit from. According to the documents, China will be a regular importer of oil from Iran, and Iran must address China's concerns about its return on investment. Promoting banking, financial and insurance cooperation and opening branches of Iranian banks and establishing a joint Iranian-Chinese bank, especially the creation of national messengers between the two countries, have also been proposed instead of Swift.

Helping to build railways in different parts of the country, increasing the export of oil products to China, helping and investing in the field of fossil energy infrastructure, investing in strengthening strategic corridors that pass through Iran, investing in developing energy production and export from Iran to regional countries, participation In the comprehensive development of Makran coast, helping Iran to create 5th generation Internet and strengthen the national information network, investing in clean energy production in Iran's desert areas, helping to develop our country's nuclear nuclear industry and investing in metro wagons and construction of subway lines in major cities Iran's new cities are among the most important parts of the document

 

[Muhammed45]

So as mentioned by Khorasan newspaper, Chabahar port will Continue to its development with Chinese investment. To hell with American sanctions, with Chinese investment in Chabahar Iran-Pakistan relations will be improved greatly and the Indian trouble makers will be kicked out of that strategic port. @Indus Pakistan @Pakistani Fighter @Pakistani Fighter @Philosopher @Mithridates and others. Highly likely if this agreement is signed and implemented, then we can see Gwadar-Chabahar connection in the near future.

 

[the_messenger]

One of the most important points of this document is the agreement on trade in national currencies.

Trump really messed up everything.
Indian involvement into Central Asian and Afganistan is dead and buried, years of works wasted. When you have the US as your ally, there is no need for an enemy.

 

[Genghis khan1]

How about Iran-Pakistan-China pipeline.

 

[serenity]

Countries should really only buy oil from Iran instead of Saudi Israel using gold or gold backed currency or their own currency for bilateral deals. If Saudi Arabia continues being Israel's puppet. Israel uses both Saudi Arabia and OPEC for global running operation of taking hostage using money and US and European countries to control China and Russia. We should start by moving to own currency trade or gold and barter deals if possible.

 

[RedHulk]

Pakistan need to develop a bank in gawadar that should solely facilitate promotion of trade between countries in their local currency by ditching dollar or any third party currency. It could be a payment Chanel between gulf countries and China. It would be ideal location to facilitate transactions of this kind as there will be Chinese presence and gulf countries will be near by to deposit their gold as security. That bank probably will come under American sanctions but that bank could avoid sanctions by just dealing with those countries who want to ditch dollar and avoid sanctions to do business specially what Russia is doing right now. Make that bank independent from SBP. This would also really benefit Iran. Plus trade with Pakistan will be increased.

 

[Muhammed45]

Pakistan need to develop a bank in gawadar that should solely facilitate promotion of trade between countries in their local currency by ditching dollar or any third party currency. It could be a payment Chanel between gulf countries and China. It would be ideal location to facilitate transactions of this kind as their will be Chinese presence and gulf countries will be near by to deposit their gold as security. That bank probably will come under American sanctions but that bank could avoid sanctions by just dealing with those countries who want to ditch dollar and avoid sanctions to do business specially what Russia is doing right now. Make that bank independent from SBP. This would also really benefit Iran. Plus trade with Pakistan will be increased.

Well said. Geographically Pakistan is the node between Persian Gulf and eastern Asia.

 

[GWXP]

China's Giant $400 Billion Iran Investment Complicates U.S. Options

https://www.forbes.com/sites/arielc...ion-iran-investment-snubs-trump/#bcb59a984d1e

To understand this 25-year cooperation pact and Chinese desire to invest in Iran we should understand Chinese concerns.

85% of Chinese oil comes from the Persian Gulf. And all oil tankers flow through the Indian ocean and pass throught the Straight of Malacca

To guarantee security of oil supplies China needs a blue water navy but China will not have such a navy until 2040.

Currently, China is incapable of projecting power to the Persian Gulf to which it depends in energy supplies.
In securing its oil supplies, China is dependent on US Navy that dominates Indian ocean

China calls this oil supply issue -"Malacca dilema".

If there will be a war between Iran and US in the Persian Gulf and oil supplies will stall, Chinese economy will collapse. And China can not influence events in the Persian Gulf due to power projection limits.

Total household/corporate/government debt of China is 350% of GDP--dangerously high for a country at this level of development. Major oil shock will bring to failure of companies to return their loans to banks and there will be a massive financial crises that will destabilize China.

I have even read a book written by former think tank employee that propose a US attack on Iran in order to cut oil supplies to China and devastate its economy and destabilize its society. The idea is that US has shale oil and US will not suffer much if Straight of Hormuz will be closed...China however will be devastated.


To solve this oil supply issue China developed a strategy:

1) it can upload oil at the port of Gwadar and transport it by pipeline to China via Pakistani territory, bypassing the Straight of Malacca

2) it builds infrastructure in Myanmar and oil tankers will be able to upload oil in Myanmar and transport it to China via pipeline, bypassing the Straight of Malacca

3) it can build a pipeline from Iran to China via Pakistan

4) it can deploy military vessels in the port of Gwadar in near future in order to secure the Straight of Hormuz

5) probably China wants a naval base in Iran as well

So from my point of view, this 25-year pact is designed to improve Chinese energy security. Of 400bln, 280bln will go to oil infrastructure and 120bln to manufacturing, energy and transport.


Main problem of Iran is isolation from global capital markets. Iran must be able to borrow money from abroad to develop its economy, however sanctions prevent this....So if China can invest 400bln in Iran and open a credit line for another 200-300bln with low interest rate, Iran can give China what it needs--energy security.

Note that loans for projects like infrastructure in Pakistan are given by IMF with 12% interest rate....China gives such loans to Pakistan with only 2% interest rate....If Iran could secure such cheap loans it will be fantastic for Iran and Iran will not need the West at all. However note that in exchange China might want a naval base in the Persian Gulf

 

[Muhammed45]

However note that in exchange China might want a naval base in the Persian Gulf

Agree with all your thoughts except this One. China despite investing a huge amount of cash in Gwadar, never asked for a military base in that port. Not to mention that Iranian constitutional laws has forbidden it. So no way. This will enhance and improved Iran's relations with China in all sectors.

 

[RedHulk]

Agree with all your thoughts except this One. China despite investing a huge amount of cash in Gwadar, never asked for a military base in that port. Not to mention that Iranian constitutional laws has forbidden it. So no way. This will enhance and improved Iran's relations with China in all sectors.

China Will most probably use gawadar port for navy in case of escalation. As it need to secure supply not just from Iran but also from other gulf countries.

 

[serenity]

Agree with all your thoughts except this One. China despite investing a huge amount of cash in Gwadar, never asked for a military base in that port. Not to mention that Iranian constitutional laws has forbidden it. So no way. This will enhance and improved Iran's relations with China in all sectors.

If the case for Chinese navy base in Iran is for security, it's similar to cooperation to improve Iran's own navy since both share this common interest and if Iran can keep Hormuz open and secure based on Iran's own interests which are China's too, then there is no need for Chinese navy presence except in Indian Ocean. Since supply lines are too long for PLAN today, it still requires many Indian Ocean bases and Djibouti is not enough, too small and too far. The solution is strong Iran and alternative energy pipelines through Pakistan. Until 2040 we will all still be majority use of oil coal and gas for energy. Nuclear needs to triple to meet demand and Australia can limit uranium. China's own resources should be reserved for weapons just in case.

 

[Muhammed45]

China Will most probably use gawadar port for navy in case of escalation. As it need to secure supply not just from Iran but also from other gulf countries.

Thats a friendly cooperation. Russia used Hamedan airbase for its bombers during the bombing campaign against ISIS in Syria. It doesnt mean that Russia established a military base in Iran. Chinese military is always welcome to Iranian coasts.

 

[serenity]

China Will most probably use gawadar port for navy in case of escalation. As it need to secure supply not just from Iran but also from other gulf countries.

Enough for IN but not enough for USN. We will need dozens of nuclear submarines and at least 3 super carrier fleets which we don't even have single one of yet. Type 003 progress will check this back in a few years but all paths are rigorously pursued now. Military security, pipe, alternative energy.

There is a common misunderstanding about China military base. China does not need such bases.
It is unwise and even foolish to establish bases when Singapore and Taiwan is still a chock-point that can easily be cut off by the US military. In addition, the cost to maintain such a base is very high. It's far easier to build bases after the US collapse, not before. Building a military base is fast, very fast in fact.
The aim of China is the collapse of the US, the main point of the US is that the world needs its technology, and the world is still, otherwise, the dollar will no longer useful. The dollar payment system, in turn, will feed the US power.
In order to bring forth the collapse of the dollar system and after that, the US, China has to provide the technology alternative. Their technologies are not necessarily a superior, but usable. And China also needs strong allies.
China is getting there, semiconductor and aeroplane are the two items that are left.

The USA may cause more trouble anytime they choose. Their navy has much stronger force projection globally. Only place PLAN can meet USN is in our own front yard and SCS up to third island chains. Taiwan is not a consideration. Taiwan is our home and people too and destruction is really the last thought even when both sides talk tough and aggressive. The USA has attacked Iran many times already and disrupt their progress especially for their economy, military and nuclear industry. So they may do more and may even attack China if China is obviously fighting with Iran to keep energy supply open.

 

[the_messenger]

China's Giant $400 Billion Iran Investment Complicates U.S. Options

https://www.forbes.com/sites/arielc...ion-iran-investment-snubs-trump/#bcb59a984d1e

To understand this 25-year cooperation pact and Chinese desire to invest in Iran we should understand Chinese concerns.

85% of Chinese oil comes from the Persian Gulf. And all oil tankers flow through the Indian ocean and pass throught the Straight of Malacca

To guarantee security of oil supplies China needs a blue water navy but China will not have such a navy until 2040.

Currently, China is incapable of projecting power to the Persian Gulf to which it depends in energy supplies.
In securing its oil supplies, China is dependent on US Navy that dominates Indian ocean

China calls this oil supply issue -"Malacca dilema".

If there will be a war between Iran and US in the Persian Gulf and oil supplies will stall, Chinese economy will collapse. And China can not influence events in the Persian Gulf due to power projection limits.

Total household/corporate/government debt of China is 350% of GDP--dangerously high for a country at this level of development. Major oil shock will bring to failure of companies to return their loans to banks and there will be a massive financial crises that will destabilize China.

I have even read a book written by former think tank employee that propose a US attack on Iran in order to cut oil supplies to China and devastate its economy and destabilize its society. The idea is that US has shale oil and US will not suffer much if Straight of Hormuz will be closed...China however will be devastated.


To solve this oil supply issue China developed a strategy:

1) it can upload oil at the port of Gwadar and transport it by pipeline to China via Pakistani territory, bypassing the Straight of Malacca

2) it builds infrastructure in Myanmar and oil tankers will be able to upload oil in Myanmar and transport it to China via pipeline, bypassing the Straight of Malacca

3) it can build a pipeline from Iran to China via Pakistan

4) it can deploy military vessels in the port of Gwadar in near future in order to secure the Straight of Hormuz

5) probably China wants a naval base in Iran as well

So from my point of view, this 25-year pact is designed to improve Chinese energy security. Of 400bln, 280bln will go to oil infrastructure and 120bln to manufacturing, energy and transport.


Main problem of Iran is isolation from global capital markets. Iran must be able to borrow money from abroad to develop its economy, however sanctions prevent this....So if China can invest 400bln in Iran and open a credit line for another 200-300bln with low interest rate, Iran can give China what it needs--energy security.

Note that loans for projects like infrastructure in Pakistan are given by IMF with 12% interest rate....China gives such loans to Pakistan with only 2% interest rate....If Iran could secure such cheap loans it will be fantastic for Iran and Iran will not need the West at all. However note that in exchange China might want a naval base in the Persian Gulf

I think China can have an option to buy Iranian oil from Russia, directly or indirectly. Russia will act as a proxy for Iranian oil through Caspian sea.
In this current time, perhaps this option is the easiest to implement?

 

[Muhammed45]

I think China can have an option to buy Iranian oil from Russia, directly or indirectly. Russia will act as a proxy for Iranian oil through Caspian sea.
In this current time, perhaps this option is the easiest to implement?

We are gonna trade with China in Yuan. Pakistan should do the same. You bring dollar into your trade then expect being sanctioned/sabotaged/annoyed by American ministry of economical terrorism and treasuries