China, Iran expected to sign 25-year accord, Iranian state media says Reuters via biedex.markets

4 mins read
U.S. stock funds record $354 million inflow in week -Lipper By Reuters

© Reuters. China’s Foreign Minister Wang Yi listens to Iran’s Foreign Minister Mohammad Javad Zarif during a meeting at the Diaoyutai state guest house in Beijing

DUBAI (Reuters) – Chinese Foreign Minister Wang Yi arrived in Iran on Friday for a visit that Iranian state media said would see the signing of a 25-year cooperation agreement between the two countries, which are both under U.S sanctions.

The accord, final details of which are yet to be announced, is expected to include Chinese investments in Iran’s energy and infrastructure sectors.

In 2016, China, Iran’s largest trading partner and long-time ally, agreed to boost bilateral trade by more than 10 times to $600 billion in the next decade.

“The signing of the comprehensive cooperation programme of the Islamic Republic of Iran and the People’s Republic of China by the foreign ministers of the two countries is another programme of this two-day trip,” state news agency IRNA said.

Iran is hardening its stance towards the United States and the European parties to Tehran’s 2015 nuclear accord with world powers.

“This document is a complete roadmap with strategic political and economic clauses covering trade, economic and transportation cooperation … with a special focus on the private sectors of the two sides,” Foreign Ministry spokesman Saeed Khatibzadeh told state TV.

On Thursday, China’s commerce ministry said Beijing will make efforts to safeguard the Iran nuclear deal and defend thelegitimate interests of Sino-Iranian relations.

China made the comments after Reuters reported that Iran has”indirectly” moved record volumes of oil into China in recentmonths, marked as supplies from other countries, evenas China customs data showed that no Iranian oil was imported inthe first two months of this year.

U.S. President Joe Biden has sought to revive talks withIran on the nuclear deal abandoned by former President DonaldTrump in 2018, although harsh economic measures remain in placethat Tehran insists be lifted before any negotiations resume.

The United States and the other Western powers that joinedthe 2015 deal appear at odds with Tehran over which side should return to the accord first, making it unlikely that U.S. sanctions which have crippled Iran’s economy can be quicklyremoved.

However, the OPEC member’s oil exports climbed in Januaryafter a boost in the fourth quarter, despite U.S. sanctions, ina sign that the end of Trump’s term may be changing buyer behaviour. Since late 2018 there was a sharp drop in Iranian exports to China and other Asian customers.