Iran-China
pact turbocharges the New Silk Roads
China will invest $400 billion in Iran energy and
infrastructure but nothing in strategic pact allows for
a Chinese troop presence or island handover
By Pepe Escobar
July 12, 2020 "Information
Clearing House" - TWO of the US’s top
‘strategic threats’ are getting closer and closer within
the scope of the New Silk Roads — the leading 21st
century project of economic integration across Eurasia.
The Deep State will not be amused.
Iranian foreign ministry spokesman Abbas Mousavi
blasted as ‘lies’ a series of rumours about the
‘transparent roadmap’ inbuilt in the evolving Iran-China
strategic partnership.
That was complemented by president Rouhani’s chief of
staff, Mahmoud Vezi, who said that ‘a destructive line
of propaganda has been initiated and directed from
outside Iran against the expansion of Iran’s relations
with neighbours and especially (with) China and Russia.’
Vezi added, ‘this roadmap in which a path is defined
for expansion of relations between governments and the
private sectors is signed and will continue to be signed
between many countries.’
To a great extent, both Mousavi and Vezi were
referring to a sensationalist report which did not add
anything that was not already known about the strategic
partnership, but predictably dog-whistled a major red
alert about the military alliance.
The Iran-China strategic partnership was officially
established in 2016, when president Xi visited Tehran.
These are the guidelines.
Two articles among the 20 listed in the agreement are
particularly relevant.
Item 7 defines the scope of the partnership within
the New Silk Roads vision of Eurasia integration: ‘The
Iranian side welcomes “the Silk Road Economic Belt and
the 21st Century Maritime Silk Road” initiative
introduced by China. Relying on their respective
strengths and advantages as well as the opportunities
provided through the signing of documents such as the
“MOU on Jointly Promoting the Silk Road Economic Belt
and the 21st Century Maritime Silk Road” and “MOU on
Reinforcement of Industrial and Mineral Capacities and
Investment”, both sides shall expand cooperation and
mutual investments in various areas including
transportation, railway, ports, energy, industry,
commerce and services.’
And item 10 praises Iran’s membership of the AIIB:
‘The Chinese side appreciates Iran’s participation as a
“Founding Member” of the Asia Infrastructure Investment
Bank. Both sides are willing to strengthen their
cooperation in the relevant areas and join their efforts
towards the progress and prosperity of Asia.’
So what’s the deal?
THE core of the Iran-China strategic partnership — no
secret whatsoever since at least last year — revolves
around a $400 billion Chinese investment in Iran’s
energy and infrastructure for the next 25 years. It’s
all about securing a matter of supreme Chinese national
interest: a steady supply of oil and gas, bypassing the
dangerous bottleneck of the Strait of Malacca, secured
with a median 18 per cent discount, and paid in yuan or
in a basket of currencies bypassing the US dollar.
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Beijing will also invest roughly $228 billion in
Iranian infrastructure — that’s where the AIIB comes in
— over 25 years, but especially up to 2025. That ranges
from building factories to badly needed energy industry
renovation, all the way to the already in progress
construction of the 900 kilometres-long electric rail
from Tehran to Mashhad.
Tehran, Qom and Isfahan will also be linked by
high-speed rail — and there will be an extension to
Tabriz, an important oil, gas and petrochemical node and
the starting point of the Tabriz-Ankara gas pipeline.
All of the above makes total sense in New Silk Road
terms, as Iran is a key Eurasian crossroads. High-speed
rail traversing Iran will connect Urumqi in Xinjiang to
Tehran, via four of the Central Asian ‘stans’
(Kazakhstan, Kyrgyzstan, Uzbekistan and Turkmenistan)
all the way to West Asia, across Iraq and Turkey, and
further on to Europe: a techno revival of the Ancient
Silk Roads, where the main language of trade between
East and West across the heartland was Persian.
The terms of aerial and naval military cooperation
between Iran and China and also Russia are still not
finalised — as Iranian sources told me. And no one has
had access to the details. What Mousavi said, in a
tweet, was that ‘there is nothing (in the agreement)
about delivering Iranian islands to China, nothing about
the presence of military forces, and other falsehoods.’
The same applies to — totally unsubstantiated —
speculations that the People’s Liberation Army would be
granted bases in Iran and be allowed to station troops
in Iranian territory.
Last Sunday, foreign minister Mohammad Javad Zarif
stressed that Iran and China had been negotiating ‘with
confidence and conviction’ and there was ‘nothing
secret’ about the agreement.
Iranian, Chinese and Russian negotiators will meet
next month to discuss terms of military cooperation
among the top three nodes of Eurasia integration. Closer
collaboration is scheduled to start by November.
Geopolitically and geoeconomically, the key take away
is that the US’s relentless blockade of the Iranian
economy, featuring hardcore weaponised sanctions, is
impotent to do anything about the wide-ranging
Iran-China deal. Here is a decent expose of some of the
factors in play.
The Iran-China strategic partnership is yet another
graphic demonstration of what could be deconstructed as
the Chinese brand of exceptionalism: a collective
mentality and enough organised planning capable of
establishing a wide-ranging, win-win, economic,
political and military partnership.
It’s quite instructive to place the whole process
within the context of what state councillor and foreign
minister Wang Yi stressed at a recent China-US Think
Tanks meeting, attended, among others, by Henry
Kissinger:
‘One particular view has been floating around in
recent years, alleging that the success of China’s path
will be a blow and threat to the Western system and
path. This claim is inconsistent with facts, and we do
not agree with it. Aggression and expansion are never in
the genes of the Chinese nation throughout its 5,000
years of history. China does not replicate any model of
other countries, nor does it export its own to others.
We never ask other countries to copy what we do. More
than 2,500 years ago, our forefathers advocated that
“All living things can grow in harmony without hurting
one another, and different ways can run in parallel
without interfering with one another’’.’
Pepe Escobar is
correspondent-at-large at
Asia Times.
His latest book is
2030. Follow him on
Facebook.-
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