China-Iran Strategic Partnership Treaty:New Challenges for India and the US

 

China and Iran have prepared a strategic co-operation agreement for the next 25 years with a plan to end the long-standing dominance of the United States on the Asian continent.According to the Iran Foreign Ministry,the agreement will upgrade bilateral relations to a new strategic level.The agreement will not only have a far-reaching impact on the Middle East and the Asian continent but will also usher in new challenges for India and the US.According to the New York Times ,China-Iran's strategic Partnership treaty will abolish the exchange value of the US dollar in the International crude oil market and it will also change the geo-political environment in Asia.A draft of the 18- page document has already been approved by the Iran Parliament.The treaty will completely bring the international crude oil and natural gas market in Iran under China's control.This will gradually end American authoritarianism that has suppressed the Middle East for a long time. Russia has already signed a twenty years cooperation agreement with Iran in 2001 to prevent US influence in South Asia.China's diplomatic strategy is currently set to challenge the United States again.The main objective of the agreement is to prevent the rise of the US on the Asian continent by using India as a weapon.China has given $2.3 billion in loans to Turkey by adopting a debt strategy policy to keep the Middle East under it's control.Turkey has already purchased 400 fighter jets from Russia to boost its military strength.China will invest $400 billion for the next 25 years as per Iran's strategic co-operation agreement.China will invest in hundreds of sectors including Iran's crude oil,natural gas,banking,telecom,ports,railway development.It will also focus on military coaches, manufacture of weapons, security and exchange of intelligence between the two countries.According to experts in International politics,this strategic cooperation agreement between China and Iran is a huge achievement for China because Iran's world's largest crude oil market will go under China's control.This will end US sanctions in the Middle East and strengthen China's position.The Middle East economy will strengthen again with the opening of Iran's international crude oil market,which is closed due to US sanctions.Moreover,the cooperation agreement will prevent the existence of the US currency dollar in Middle East because the exchange currency for oil sales  in Middle Eastern countries is currently the US dollar .It may be called that the United States has long dominated the world economy with the dollar as a weapon.China will become the world's top economic power through this agreement.After the cooperation agreement China will become the world's largest crude oil buyer.This will lead to the entry of the Chinese currency yuan against the dollar in the international market for crude oil.The International Monetary Fund has recognised the Chinese currency yuan as an international trade transaction currency in 2015.Therefore, China's currency,the yuan,will certainly challenge the US dollar.This will reduce conflict between Central Asian countries.It may be recalled that China,Russia,Iran and Pakistan are planning a massive economic project called 'Golden Ring' to counter US diplomatic pressure.China will become the world's largest economy in 2030. China is moving towards controlling the world's economy.Sixteen countries led by China and Russia have come together to prevent economic restrictions imposed  by the US against Countries around the world.Two major economic projects of China and Russia are currently underway in Iran.One of these is Russia-Iran North-South Transport Corridor.The other is the 2016 Belt and silk road project in China and Iran.The Narendra Modi led government,which wants to build a self reliant India with co-operation of the US, will face huge losses after signing the agreement, because Iran has already postponed work on crude oil and natural gas projects built to India through Baluchistan in Pakistan in view of India's closeness to the US.Iran plans to work  on this incomplete project in collaboration with China instead of India.It may be noted that Russia has a huge plan behind this strategic partnership treaty of China. The 'Golden Ring' project will build economic corridors for China,Russia,Iran,Turkey and Pakistan.This 'Golden Ring' project will also cover Afghanistan in the future.It is a matter of fact that India has already lost dominance in neighbouring countries of Sri Lanka, Nepal and Bangladesh due to prime Minister Narendra Modi's short-sighted foreign policy.China,on the contrary,has gradually expanded trade in India's neighbouring countries.India which has good bilateral relations with Iran until recently,is now poor relations with Maldives and Afghanistan.In such a context,China Iran's strategic partnership treaty is not only going to challenge the United States,it is also likely to have a far-reaching impact on India.

 

References:

1.Krishnam,Ananth.(2021,March 27)China,Iran sign 25-year 'Strategic Pact'.

https://www.thehindu.com/news/international/iran-china-sign-25-year-cooperation-agreement/article34176965.ece

 

2.Duggal,Mahima.(2021,April 09)What the China-Iran Strategic Cooperation pact means for India.

https://thediplomat.com/2021/04/what-the-china-iran-strategic-cooperation-pact-means-for-india/

 

Papori Borah

MA 1st semester

Dibrugarh university