China-Iran: Close, but not cosy
China-Iran relations have deepened over the past few years. Even in the face of US sanctions, China has offered a lifeline to Tehran. The relationship is rooted in both diplomatic and economic interests.Yet while economic ties are expanding, China is also playing a cautious game with Iran. This week, we look at how:
Co-operation between China and Iran continues to develop following a 25-year agreement that was signed in March 2021.
While oil is critical to bilateral relations, China’s increasing control over independent refiners is likely to affect future trade links with Iran.
Diplomatic ties are still strong, but they may be overstated by Iran; China is likely to pursue a neutral position in the MENA region.
Florence Eid-Oakden, Ph.D, Chief Economist
Leila Lajevardi, Mingqiao Zhao, Analysts
The Regional Views series are thematic papers aimed at identifying and analysing factors behind medium to long-term economic trends shaping the region. Our analysis draws conclusions that help businesses and investors get ahead of the curve. As a firm staffed by Middle Easterners, we focus on insight rather than standard analysis.
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