Chinese suppliers sent around 1,300 shipments of dual-use components to Iran’s defence ministry during the first half of 2026, helping sustain the country’s weapons programmes, The Wall Street Journal reported. The shipments included parts that can be used for drones and other military systems, according to Iranian customs records the Journal reviewed.<h2>More than $6 million in drone parts</h2>One shipment arrived in Iran on June 17, the same day Washington and Tehran agreed to a 60-day truce, the report said. More than a dozen shipments followed two days later, carrying over $6 million worth of parts that could be used in drones.&nbsp;The findings come as Chinese President Xi Jinping is in Washington for talks with US President Donald Trump. Chinese support for Iran is expected to be among the issues surrounding the talks, alongside trade, artificial intelligence safety and Taiwan.&nbsp;The Journal reported that Trump had told aides that maintaining relations with Xi was a priority.&nbsp;Records provided by ImportGenius, covering January 2025 to June 2026, listed thousands of shipments to Iranian companies and the defence ministry. They included GPS devices, motors and aircraft engine parts.&nbsp;Several shipments cited Article 119, which exempts defence imports from tariffs.<h2>Iran expanded air links with China</h2>China also delivered around 300 tonnes of chemical compounds to Iran’s defence ministry days before the war began on February 28, the report said. Trade between the two countries initially fell sharply after the conflict began. But Iran later expanded air links with China as an April US naval blockade further restricted supplies.&nbsp;US-sanctioned Mahan Air increased flights from Beijing, Shanghai and Guangzhou to Tehran from four per week in early March to around 27 per week by late April, according to FlightRadar24 data cited by the Journal.&nbsp;&nbsp;

Chinese suppliers sent around 1,300 dual-use component shipments to Iran during early 2026, boosting its weapons programs via expanded air routes despite US sanctions, according to Iranian customs records.

Chinese suppliers sent around 1,300 shipments of dual-use components to Iran’s defence ministry during the first half of 2026, helping sustain the country’s weapons programmes, The Wall Street Journal reported. The shipments included parts that can be used for drones and other military systems, according to Iranian customs records the Journal reviewed. More than $6 million in drone parts One shipment arrived in Iran on June 17, the same day Washington and Tehran agreed to a 60-day truce, the report said. More than a dozen shipments followed two days later, carrying over $6 million worth of parts that could be used in drones. The findings come as Chinese President Xi Jinping is in Washington for talks with US President Donald Trump. Chinese support for Iran is expected to be among the issues surrounding the talks, alongside trade, artificial intelligence safety and Taiwan. The Journal reported that Trump had told aides that maintaining relations with Xi was a priority. Records provided by ImportGenius, covering January 2025 to June 2026, listed thousands of shipments to Iranian companies and the defence ministry. They included GPS devices, motors and aircraft engine parts. Several shipments cited Article 119, which exempts defence imports from tariffs. Iran expanded air links with China China also delivered around 300 tonnes of chemical compounds to Iran’s defence ministry days before the war began on February 28, the report said. Trade between the two countries initially fell sharply after the conflict began. But Iran later expanded air links with China as an April US naval blockade further restricted supplies. US-sanctioned Mahan Air increased flights from Beijing, Shanghai and Guangzhou to Tehran from four per week in early March to around 27 per week by late April, according to FlightRadar24 data cited by the Journal.

Chinese suppliers sent around 1,300 dual-use component shipments to Iran during early 2026, boosting its weapons programs via expanded air routes despite US sanctions, according to Iranian customs records.

China sent 1,300 shipments to Iran’s defence ministry before and during war: Report

Chinese entities reportedly supplied Iran with high-quality satellite imagery of US Air Force base in Jordan before and after Tehran's July 17 ballistic missile attack that killed three American troops. However, US President Donald trump downplayed the development, and insisted that both China and the US “spy” on each other. The claims was made in a Wall Street Journal report, in which it cited US officials familiar with the matter, without naming them.&nbsp;Also Read:<a href="https://www.wionews.com/world/iran-won-t-surrender-pezeshkian-sends-blunt-message-to-us-while-attending-brics-summit-in-india-1789269444021"> 'Iran won't surrender': Pezeshkian sends blunt message to US while attending BRICS Summit in India</a>&nbsp;US officials called it the clearest evidence yet that Chinese support for Iran during the conflict contributed to the deaths of US troops. However, they stopped short of accusing Beijing of directly participating in the attack, The Wall Street Journal reported. Senior US officials raised the issue of the imagery with their Chinese counterparts, but Beijing rejected the allegation and asked Washington to provide evidence, The Wall Street Journal reported citing sources.&nbsp;Jordan's Muwaffaq Salti Air Base was attacked on July 17 three times within 24 hours. Iranian ballistic missiles struck a housing area where US troops were sleeping, killing 3. They were the first US military fatalities in the Iran war since a 60-day ceasefire agreed in April. The three killed were identified as Lt Tyler James Feehan, 25, of Ewa Beach, Hawaii; Pvt Isabella Gonzales, 19, of Carrollton, Texas; and Sgt Angel S Rampersad, 28, of Ozone Park, New York. Incidentally, evidence of Iran's use of Chinese technology had emerged months before the deadly attack. The Financial Times reported in April that Iran was using a Chinese-built and launched spy satellite purchased by the Islamic Revolutionary Guard Corps' Aerospace Force from Earth Eye Co. in late 2024.&nbsp;Also Read: <a href="https://www.wionews.com/world/china-rejects-us-call-to-isolate-iran-says-sanctions-and-pressure-will-not-resolve-conflict-1787299284181">China rejects US call to isolate Iran, says 'sanctions and pressure' will not resolve conflict</a>

<h2>How Trump reacted?</h2>US President Donald Trump downplayed reports that Chinese entities supplied Tehran with satellite images of a military base in Jordan before and after an Iranian strike killed three US soldiers. "You know, when they say that China spies on us, I say you're right, and we spy on them too," Trump told reporters aboard Air Force One a day after The Wall Street Journal reported Beijing's intelligence sharing. "That's what we do. They basically do what we do," Trump said. Iran again targeted Muwaffaq Salti Air Base on September 10, with the latest strike reportedly damaging several US aircraft. Trump, however, denied that any US planes were damaged.

Chinese entities supplied Iran with high-quality satellite imagery of a US base in Jordan before and after a July 17 missile strike that killed three US troops, The Wall Street Journal reported. Washington raised the issue with Beijing, which denied the allegation.

Chinese entities reportedly supplied Iran with high-quality satellite imagery of US Air Force base in Jordan before and after Tehran's July 17 ballistic missile attack that killed three American troops. However, US President Donald trump downplayed the development, and insisted that both China and the US “spy” on each other. The claims was made in a Wall Street Journal report, in which it cited US officials familiar with the matter, without naming them. Also Read: 'Iran won't surrender': Pezeshkian sends blunt message to US while attending BRICS Summit in India US officials called it the clearest evidence yet that Chinese support for Iran during the conflict contributed to the deaths of US troops. However, they stopped short of accusing Beijing of directly participating in the attack, The Wall Street Journal reported. Senior US officials raised the issue of the imagery with their Chinese counterparts, but Beijing rejected the allegation and asked Washington to provide evidence, The Wall Street Journal reported citing sources. Jordan's Muwaffaq Salti Air Base was attacked on July 17 three times within 24 hours. Iranian ballistic missiles struck a housing area where US troops were sleeping, killing 3. They were the first US military fatalities in the Iran war since a 60-day ceasefire agreed in April. The three killed were identified as Lt Tyler James Feehan, 25, of Ewa Beach, Hawaii; Pvt Isabella Gonzales, 19, of Carrollton, Texas; and Sgt Angel S Rampersad, 28, of Ozone Park, New York. Incidentally, evidence of Iran's use of Chinese technology had emerged months before the deadly attack. The Financial Times reported in April that Iran was using a Chinese-built and launched spy satellite purchased by the Islamic Revolutionary Guard Corps' Aerospace Force from Earth Eye Co. in late 2024. Also Read: China rejects US call to isolate Iran, says 'sanctions and pressure' will not resolve conflict

Chinese entities supplied Iran with high-quality satellite imagery of a US base in Jordan before and after a July 17 missile strike that killed three US troops, The Wall Street Journal reported. Washington raised the issue with Beijing, which denied the allegation.

Did China give Iran intel before US base strike that killed 3 troops? Trump says, 'You’re right...'

China on Thursday pledged that it will&nbsp;safeguard the Iran nuclear deal and defend the legitimate interests of Sino-Iranian relations.

Ministry of commerce spokesman&nbsp;Gao Feng told a news briefing in response to a question from the media that&nbsp;China&nbsp;has not received notices of sanctions on Iranian oil from the Biden administration.

China's comments came after&nbsp;reports surfaced&nbsp;that Iran has "indirectly" moved record volumes of oil into&nbsp;China&nbsp;in recent months, marked as supplies from Oman, the UAE and Malaysia, even as&nbsp;China&nbsp;customs data showed that no Iranian oil was imported in the first two months this year.

Also read|&nbsp;<a href="https://www.wionews.com/world/time-running-out-for-us-to-revive-nuclear-deal-irans-foreign-minister-370705">Time running out for US to revive nuclear deal: Iran's Foreign Minister&nbsp;</a>

The increase in Iranian supplies has partly contributed to a drop in Brent crude prices from $70 a barrel in mid-March.&nbsp;

Iran's supreme leader on Sunday reiterated the Islamic republic's "definite policy" that Washington must lift all sanctions before Tehran returns to its commitments under a 2015 nuclear deal.

The deal was meant to provide&nbsp;Iran&nbsp;with international sanctions relief in exchange for limitations on its controversial nuclear programme.

But it has been on life-support ever since former US president Donald Trump withdrew from it in 2018 and reimposed sanctions as part of a "maximum pressure" campaign against Tehran.

Joe Biden, who defeated Trump at the ballot box in November, has signalled his readiness to revive the accord, but his administration insists&nbsp;Iran&nbsp;must first return to its nuclear commitments, most of which Tehran has suspended in response to US sanctions.

Also read|&nbsp;<a href="https://www.wionews.com/world/us-iran-beef-up-military-activity-in-gulf-ahead-of-soleimanis-first-death-anniversary-354027">US, Iran beef up military activity in Gulf ahead of Soleimani's first death anniversary</a>

The United States and the other Western powers that signed up to the 2015 deal appear to be at odds with Tehran over which side should return to the accord first, making it unlikely that US&nbsp;sanctions which have crippled Iran's economy can be quickly removed.

However, the OPEC member's oil exports climbed in January after a boost in the fourth quarter, despite US&nbsp;sanctions, in a sign that the end of Donald Trump's term as US&nbsp;president may be changing buyer behaviour.

Iranian crude oil exports remain at elevated levels in March compared to last year, tanker tracker Petro-Logistics said on Tuesday, adding to signs of a recovery in the shipments.

The sanctions caused a precipitous drop in Iranian exports to&nbsp;China, India, Japan and South Korea since late 2018. Those measures, and output cuts by fellow OPEC+ producers, have led to tight supplies of Middle East sour crude in Asia, the top global oil market. Asia imports more than half of its crude from the Middle East.

China on Thursday pledged that it will safeguard the Iran nuclear deal and defend the legitimate interests of Sino-Iranian relations. Ministry of commerce spokesman Gao Feng told a news briefing in response to a question from the media that China has not received notices of sanctions on Iranian oil from the Biden administration.

China on Thursday pledged that it will safeguard the Iran nuclear deal and defend the legitimate interests of Sino-Iranian relations. Ministry of commerce spokesman Gao Feng told a news briefing in response to a question from the media that China has not received notices of sanctions on Iranian oil from the Biden administration. China's comments came after reports surfaced that Iran has "indirectly" moved record volumes of oil into China in recent months, marked as supplies from Oman, the UAE and Malaysia, even as China customs data showed that no Iranian oil was imported in the first two months this year. Also read| Time running out for US to revive nuclear deal: Iran's Foreign Minister The increase in Iranian supplies has partly contributed to a drop in Brent crude prices from $70 a barrel in mid-March. Iran's supreme leader on Sunday reiterated the Islamic republic's "definite policy" that Washington must lift all sanctions before Tehran returns to its commitments under a 2015 nuclear deal. The deal was meant to provide Iran with international sanctions relief in exchange for limitations on its controversial nuclear programme. But it has been on life-support ever since former US president Donald Trump withdrew from it in 2018 and reimposed sanctions as part of a "maximum pressure" campaign against Tehran. Joe Biden, who defeated Trump at the ballot box in November, has signalled his readiness to revive the accord, but his administration insists Iran must first return to its nuclear commitments, most of which Tehran has suspended in response to US sanctions. Also read| US, Iran beef up military activity in Gulf ahead of Soleimani's first death anniversary The United States and the other Western powers that signed up to the 2015 deal appear to be at odds with Tehran over which side should return to the accord first, making it unlikely that US sanctions which have crippled Iran's economy can be quickly removed. However, the OPEC member's oil exports climbed in January after a boost in the fourth quarter, despite US sanctions, in a sign that the end of Donald Trump's term as US president may be changing buyer behaviour. Iranian crude oil exports remain at elevated levels in March compared to last year, tanker tracker Petro-Logistics said on Tuesday, adding to signs of a recovery in the shipments. The sanctions caused a precipitous drop in Iranian exports to China, India, Japan and South Korea since late 2018. Those measures, and output cuts by fellow OPEC+ producers, have led to tight supplies of Middle East sour crude in Asia, the top global oil market. Asia imports more than half of its crude from the Middle East.

China vows to defend Sino-Iran ties, safeguard nuclear deal

China has struck a deal with America's enemy - Iran. It's a $400 billion economic and security strategic partnership deal.

As always, China is using its chequebook to have its way. It has bought Iran over for $400 billion dollars. It is a 25-year strategic accord with an 18-page agreement that weds Iran to China for a quarter of a century.

Once it is signed, Iran will open its doors for Chinese investment not just in one or two sectors but&nbsp;across the Iranian economy. The Chinese presence in Iran would expand in banking, telecommunications, ports and railways, also more than a dozen projects will go to Chinese companies.

Beijing hopes to get cheap oil in return. China will walk away with a steady supply of Iranian oil at a heavily discounted rate for 25 years and this is just one side of the story of the economic aspect.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-a-400-billion-china-iran-deal-where-does-it-leave-the-chabahar-project-313096/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The deal also has a military dimension. There will be reportedly joint training and exercises, joint research and weapons development, even intelligence sharing as part of the agreement.&nbsp;

The deal will fundamentally change Iran’s relationship with China. It will put Tehran in Beijing’s corner and India could see its influence diminish overtime.&nbsp;

The biggest threat is to the Chabahar port. It was seen as India’s counter to the Gwadar port in Pakistan that is part of China’s Belt and Road initiative(BRI), if China invests heavily in Iran the Chabahar port could lose its relevance.&nbsp;

However, it is hypothetical as of today. The Iran-China agreement reportedly has not been submitted for Parliament’s approval yet and hasn’t been made public. China hasn’t shared the details of the deal yet as well. The ministry of foreign affairs in Beijing was asked about it today and it didn’t share any information.

It is not yet clear if the top brass of the Communist Party has signed off on it but&nbsp;the details of the deal that have leaked are reportedly part of the “final version”. Iran is not hiding the fact that it is negotiating the agreement with China. On July 5, Iran's foreign minister Javad Zarif indicated that the deal will happen and it will be presented before Iran's Parliament for approval.

The potential agreement is a big threat to India. Historically, India and Iran have enjoyed a close relationship. India was one of the biggest buyers of Iranian oil but&nbsp;New Delhi stopped buying oil from Iran in 2019 after the United States slapped sanctions against Iran and refused to grant any waivers to India.&nbsp;

Now, Trump’s “maximum pressure” policy against Tehran has failed. China went under the nose of the Americans and managed to negotiate a deal with Tehran that could create more flashpoints in West Asia and even cost India its relationship with Iran.&nbsp;

China has struck a deal with America's enemy - Iran. It's a $400 billion economic and security strategic partnership deal. As always, China is using its chequebook to have its way.

China has struck a deal with America's enemy - Iran. It's a $400 billion economic and security strategic partnership deal. As always, China is using its chequebook to have its way. It has bought Iran over for $400 billion dollars. It is a 25-year strategic accord with an 18-page agreement that weds Iran to China for a quarter of a century. Once it is signed, Iran will open its doors for Chinese investment not just in one or two sectors but across the Iranian economy. The Chinese presence in Iran would expand in banking, telecommunications, ports and railways, also more than a dozen projects will go to Chinese companies. Beijing hopes to get cheap oil in return. China will walk away with a steady supply of Iranian oil at a heavily discounted rate for 25 years and this is just one side of the story of the economic aspect. The deal also has a military dimension. There will be reportedly joint training and exercises, joint research and weapons development, even intelligence sharing as part of the agreement. The deal will fundamentally change Iran’s relationship with China. It will put Tehran in Beijing’s corner and India could see its influence diminish overtime. The biggest threat is to the Chabahar port. It was seen as India’s counter to the Gwadar port in Pakistan that is part of China’s Belt and Road initiative(BRI), if China invests heavily in Iran the Chabahar port could lose its relevance. However, it is hypothetical as of today. The Iran-China agreement reportedly has not been submitted for Parliament’s approval yet and hasn’t been made public. China hasn’t shared the details of the deal yet as well. The ministry of foreign affairs in Beijing was asked about it today and it didn’t share any information. It is not yet clear if the top brass of the Communist Party has signed off on it but the details of the deal that have leaked are reportedly part of the “final version”. Iran is not hiding the fact that it is negotiating the agreement with China. On July 5, Iran's foreign minister Javad Zarif indicated that the deal will happen and it will be presented before Iran's Parliament for approval. The potential agreement is a big threat to India. Historically, India and Iran have enjoyed a close relationship. India was one of the biggest buyers of Iranian oil but New Delhi stopped buying oil from Iran in 2019 after the United States slapped sanctions against Iran and refused to grant any waivers to India. Now, Trump’s “maximum pressure” policy against Tehran has failed. China went under the nose of the Americans and managed to negotiate a deal with Tehran that could create more flashpoints in West Asia and even cost India its relationship with Iran.

As China eyes multi-billion dollar Iran deal, India's Chabahar port may lose relevance

Recent murmurs of Iran and China negotiating a long-term partnership agreement which encompasses a comprehensive trade and security dimensions will mark a significant geopolitical shift not only for the countries involved but also for the wider region.&nbsp;&nbsp;

The deal whose details are yet to come out in the public domain should send alarm bells ringing specially in the regions capitals, as well as, the US. Over the past few years, China through its Belt and Road Initiative (BRI) has been trying to secure its global supply chains as well as enter new markets for its products, although off late that effort has hit a significant road-block due to concerns over levels of debt accrued by the participating country and subsequent taking over the projects by the Chinese firms.&nbsp;&nbsp;

The proposed agreement would vastly expand Chinese presence in banking, telecommunications, ports, railways and dozens of other projects. Majority of these sectors of the Iranian Economy are in desperate need of an upgrade as they have been reeling under US-led economic sanctions over its nuclear program. The much-touted Joint Comprehensive Plan of Action (JCPOA) which had brought some hope to the Iranians but its subsequent revocation by the current US administration has further strengthened the anti-west faction within the country.&nbsp;&nbsp;

Isolation of Iran by the western countries, especially the US, has forced the Iranians to forge a new alliance of sorts with the Chinese who have economic might and are increasingly looking to expand their influence in the region forging a win-win alliance of sorts for the two countries. US withdrawal from the region has created an opportunity for its rivals Russia &amp; China to make inroads in the region. Of the two major powers, China with its economic capacity has an upper hand. China has significantly increased its economic, political, and – to a lesser extent – security footprint in the Middle East in the past decade, becoming the biggest trade partner and external investor for many countries in the region.&nbsp;&nbsp;

Chinese have made significant investments in Israel, Saudi Arabia and other countries and is now getting increasingly involved politically to secure its investments, the biggest example of this has to be Chinese involvement in Afghanistan post US forces withdrawal and subsequent deal with the Taliban, Beijing has been actively enhancing its contacts and possibly building robust relations with the Afghan government in Kabul and the Taliban, which are going to have an impact on the relations between its longstanding ally Pakistan and Afghanistan. China is underpinning its diplomacy with the prospects of greater trade and investment in the impoverished country. Deal with Iran is going to further give impetus to this arrangement as all the concerned countries share the boundaries.&nbsp;&nbsp;

Having a foothold through its investments in Iran will provide a strategic advantage to the Chinese that may ultimately diminish the importance of Gwadar, the much-hyped port of the CPEC project in Pakistan but is currently running in heavy losses and faces threats due to Baloch insurgency in the Baluchistan region of Pakistan where it's situated.&nbsp;&nbsp;

Access to a port in the Persian Gulf will be of huge strategic importance for the Chinese as after building a strategic post in Djibouti having a post in Strait of Hormuz will be much significant and they could practically keep an eye on US base in Manama. Chinese have been building a series of ports in strategically important locations across the Indian Ocean Region (IOR). China has also stepped up military cooperation with Iran. The People’s Liberation Army Navy has visited and participated in military exercises at least three times, beginning in 2014. The question would be would Iran be providing access to a new location or will it give access to the Chinese in the Chabahar port region. In case it's Chabahar, it does not bode well for India, as it will clearly hamstring their regional ambitions as well as access to Afghanistan, India has been using the port to circumvent Pakistan and establish a secure trade route. &nbsp;

The Iran deal for China is of great significance in the post-US Taliban deal. The scenario in Afghanistan is fluid and it cannot be ascertained as to in which direction its relationship with India is going to be impacted. India had not been part of the talks between the Taliban and the stakeholders in Afghanistan despite having sizable investments in post-war Afghanistan. This has made India vulnerable to the changing power dynamics within the country, and with the China factor in play, it may appear that may lose influence in another neighborhood country to its Asian rival.&nbsp;&nbsp;

China in the past had competed with India for a foothold on the Chabahar project, but now it seems they will prevail as Indian response to the project has been lackluster and India’s own relations with the US has had its fallout on the India-Iran relations and lately, it has been a cause of concern in the bilateral relationship. The silence of Iran in the ongoing border dispute between India and China also point out the changing dynamics between the two countries.&nbsp;&nbsp;

In addition, the port access to the Chinese will provide them with access to the potential INSTC (International North-South Transport Corridor) which provides trade connectivity from Russia to the Persian Gulf via different trades routes. China which has a close economic partnership with other regional countries of Central Asia and Russia, it helps them as well as Iranians to monetize the benefits of the Corridor at a much rapid pace.&nbsp;

Deal with China is also going to strengthen Iran’s hand in the regions power dynamics, Tehran considers itself to be as a pivotal power in the region. Historically, the Faultlines between Iran and Saudi Arabia for the influence in the region may see revived competition as Iran starts to reap economic benefits from the Deal, however, it would be interesting to see whether in case of a regional conflict how the Chinese are going to react as they have refrained in the past in getting involved in conflicts often taking a contrary position to that of the other members of UNSC and has stood by Iran.&nbsp;

In wake of the fall in global oil prices and domestic pressure in the post Arab spring world, it has become more imperative for the regional countries to look out for investment opportunities from different countries and engaging with the Chinese gives them that opportunity to keep concerns related to rights and calls for democracy at bay while providing a better quality of life to their citizens, in essence, a win-win scenario for the oppressive regimes of the region and China.&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Recent murmurs of Iran and China negotiating a long-term partnership agreement which encompasses a comprehensive trade and security dimensions will mark a significant geopolitical shift not only for the countries involved but also for the wider region.

Recent murmurs of Iran and China negotiating a long-term partnership agreement which encompasses a comprehensive trade and security dimensions will mark a significant geopolitical shift not only for the countries involved but also for the wider region. The deal whose details are yet to come out in the public domain should send alarm bells ringing specially in the regions capitals, as well as, the US. Over the past few years, China through its Belt and Road Initiative (BRI) has been trying to secure its global supply chains as well as enter new markets for its products, although off late that effort has hit a significant road-block due to concerns over levels of debt accrued by the participating country and subsequent taking over the projects by the Chinese firms. The proposed agreement would vastly expand Chinese presence in banking, telecommunications, ports, railways and dozens of other projects. Majority of these sectors of the Iranian Economy are in desperate need of an upgrade as they have been reeling under US-led economic sanctions over its nuclear program. The much-touted Joint Comprehensive Plan of Action (JCPOA) which had brought some hope to the Iranians but its subsequent revocation by the current US administration has further strengthened the anti-west faction within the country. Isolation of Iran by the western countries, especially the US, has forced the Iranians to forge a new alliance of sorts with the Chinese who have economic might and are increasingly looking to expand their influence in the region forging a win-win alliance of sorts for the two countries. US withdrawal from the region has created an opportunity for its rivals Russia & China to make inroads in the region. Of the two major powers, China with its economic capacity has an upper hand. China has significantly increased its economic, political, and – to a lesser extent – security footprint in the Middle East in the past decade, becoming the biggest trade partner and external investor for many countries in the region. Chinese have made significant investments in Israel, Saudi Arabia and other countries and is now getting increasingly involved politically to secure its investments, the biggest example of this has to be Chinese involvement in Afghanistan post US forces withdrawal and subsequent deal with the Taliban, Beijing has been actively enhancing its contacts and possibly building robust relations with the Afghan government in Kabul and the Taliban, which are going to have an impact on the relations between its longstanding ally Pakistan and Afghanistan. China is underpinning its diplomacy with the prospects of greater trade and investment in the impoverished country. Deal with Iran is going to further give impetus to this arrangement as all the concerned countries share the boundaries. Having a foothold through its investments in Iran will provide a strategic advantage to the Chinese that may ultimately diminish the importance of Gwadar, the much-hyped port of the CPEC project in Pakistan but is currently running in heavy losses and faces threats due to Baloch insurgency in the Baluchistan region of Pakistan where it's situated. Access to a port in the Persian Gulf will be of huge strategic importance for the Chinese as after building a strategic post in Djibouti having a post in Strait of Hormuz will be much significant and they could practically keep an eye on US base in Manama. Chinese have been building a series of ports in strategically important locations across the Indian Ocean Region (IOR). China has also stepped up military cooperation with Iran. The People’s Liberation Army Navy has visited and participated in military exercises at least three times, beginning in 2014. The question would be would Iran be providing access to a new location or will it give access to the Chinese in the Chabahar port region. In case it's Chabahar, it does not bode well for India, as it will clearly hamstring their regional ambitions as well as access to Afghanistan, India has been using the port to circumvent Pakistan and establish a secure trade route. The Iran deal for China is of great significance in the post-US Taliban deal. The scenario in Afghanistan is fluid and it cannot be ascertained as to in which direction its relationship with India is going to be impacted. India had not been part of the talks between the Taliban and the stakeholders in Afghanistan despite having sizable investments in post-war Afghanistan. This has made India vulnerable to the changing power dynamics within the country, and with the China factor in play, it may appear that may lose influence in another neighborhood country to its Asian rival. China in the past had competed with India for a foothold on the Chabahar project, but now it seems they will prevail as Indian response to the project has been lackluster and India’s own relations with the US has had its fallout on the India-Iran relations and lately, it has been a cause of concern in the bilateral relationship. The silence of Iran in the ongoing border dispute between India and China also point out the changing dynamics between the two countries. In addition, the port access to the Chinese will provide them with access to the potential INSTC (International North-South Transport Corridor) which provides trade connectivity from Russia to the Persian Gulf via different trades routes. China which has a close economic partnership with other regional countries of Central Asia and Russia, it helps them as well as Iranians to monetize the benefits of the Corridor at a much rapid pace. Deal with China is also going to strengthen Iran’s hand in the regions power dynamics, Tehran considers itself to be as a pivotal power in the region. Historically, the Faultlines between Iran and Saudi Arabia for the influence in the region may see revived competition as Iran starts to reap economic benefits from the Deal, however, it would be interesting to see whether in case of a regional conflict how the Chinese are going to react as they have refrained in the past in getting involved in conflicts often taking a contrary position to that of the other members of UNSC and has stood by Iran. In wake of the fall in global oil prices and domestic pressure in the post Arab spring world, it has become more imperative for the regional countries to look out for investment opportunities from different countries and engaging with the Chinese gives them that opportunity to keep concerns related to rights and calls for democracy at bay while providing a better quality of life to their citizens, in essence, a win-win scenario for the oppressive regimes of the region and China. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Iran-China comprehensive agreement and its regional implications

China said on Friday it would import Iranian oil in defiance of <a href="https://www.wionews.com/world/iran-on-course-to-exceed-nuclear-pact-limit-within-days-diplomats-231024">US sanctions on Tehran</a>, a day before US and Chinese leaders are to meet to try to resolve thorny trade disputes.

"We reject the unilateral imposition of sanctions," said Fu Cong, Director General of the Chinese foreign ministry's department of arms control.

The United States, which is trying to force <a href="https://www.wionews.com/world/i-want-to-convince-trump-to-drop-certain-sanctions-against-iran-to-give-negotiations-a-chance-macron-230941">Iran to renegotiate an agreement</a> limiting its nuclear programme, at the end of May tightened sanctions to include a full ban on Iran's exports of oil and has threatened to punish nations which refuse to go along.

"For us energy security is important and the importation of oil is important to Chinese energy security and also to the livelihood of the people," said Cong.

The sanctions have led to a plunge in Iranian oil exports, a key source of revenue for the government.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-the-iran-impasse-what-can-india-do-230999/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

But according to an International Energy Agency report earlier this month Iran was continuing to export some oil, although it was difficult to say to which countries the crude was being shipped.

"We do not accept this so-called zero tolerance policy of the United States," said Cong, who was speaking on the sidelines of a meeting on the implementation of the 2015 Iranian nuclear deal.

The deal with European powers, Russia and the United States relaxed trade restrictions on Iran in exchange for limits on its nuclear programme, but President Donald Trump has pulled Washington out of the agreement.

That has led to the unravelling of the deal that aimed to boost regional security.

Cong's statement comes a day before Trump is to meet his Chinese counterpart Xi Jinping on the sidelines of the G20 summit in Japan in an attempt to resolve an escalating trade war. 
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China said on Friday it would import Iranian oil in defiance of US sanctions on Tehran, a day before US and Chinese leaders are to meet to try to resolve thorny trade disputes.

China said on Friday it would import Iranian oil in defiance of US sanctions on Tehran, a day before US and Chinese leaders are to meet to try to resolve thorny trade disputes. "We reject the unilateral imposition of sanctions," said Fu Cong, Director General of the Chinese foreign ministry's department of arms control. The United States, which is trying to force Iran to renegotiate an agreement limiting its nuclear programme, at the end of May tightened sanctions to include a full ban on Iran's exports of oil and has threatened to punish nations which refuse to go along. "For us energy security is important and the importation of oil is important to Chinese energy security and also to the livelihood of the people," said Cong. The sanctions have led to a plunge in Iranian oil exports, a key source of revenue for the government. But according to an International Energy Agency report earlier this month Iran was continuing to export some oil, although it was difficult to say to which countries the crude was being shipped. "We do not accept this so-called zero tolerance policy of the United States," said Cong, who was speaking on the sidelines of a meeting on the implementation of the 2015 Iranian nuclear deal. The deal with European powers, Russia and the United States relaxed trade restrictions on Iran in exchange for limits on its nuclear programme, but President Donald Trump has pulled Washington out of the agreement. That has led to the unravelling of the deal that aimed to boost regional security. Cong's statement comes a day before Trump is to meet his Chinese counterpart Xi Jinping on the sidelines of the G20 summit in Japan in an attempt to resolve an escalating trade war.

Will import oil from Iran, reject zero tolerance policy of US: China

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Will import oil from Iran, reject zero tolerance policy of US: China