18:47 GMT05 December 2020
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    At first sight it may seem like the Iranian nuclear deal has no impact on Chinese economy, but Beijing has hailed the agreements reached in Vienna on July 14.

    Jin Canrong, the vice-principal of the Institute of International Relations of the People's University of China, told Sputnik, that China may now become a major exporter of Iranian oil in the world.

    Canrong noted that the Vienna agreement gives Iran a chance to address the issue of economic sanctions as the Iranian economy is in a dire state currently.

    "These difficulties are mainly connected with economic sanctions. Improvement in US-Iranian relations will lead to a certain weakening of the isolation of Iran in the Middle East."

    China, who is the main buyer of oil in Iran, will now cooperate with Iran in the nuclear field for the first time ever. According to West, this is the reason why China was so supportive of actively lifting sanctions in Iran.

    But Canrong explained that, “Although China participated in the negotiations of the ‘six’ on Iran, it was not one of the major players in the negotiations, just like a number of other countries. However, China did play an active and very positive role in these negotiations. China, of course, contributed to the solution of the Iranian nuclear issue on the basis of their interests, primarily economic.”

    The analyst recalls that earlier, China invested in Iran through the purchase of Japan’s major Iranian oil field. However, sanctions imposed by the US led to the fact that China was not able to make further investments in Iran's economy and was not able to export Iranian oil.

    “As a result, China suffered a significant economic damage. Now, after the agreement on the Iranian nuclear program and the lifting of sanctions, it is no longer a problem to export from Iran.”

    China is now the largest importer of Iranian oil and it is very beneficial to a number of parties. Iran’s entrance into the global oil market can lead to a certain decrease in energy prices.

    China will be able to invest in the Iranian oil industry. So for China, agreement on the Iranian nuclear program is beneficial in all aspects.

    “However, it is important to take into consideration the following factors. If Iranian economy sees positive changes, the state would become competitive from an economic perspective in the Middle East. Iran will become a state with a large potential market,” said Canrong.

    The expert further elaborated how for China the agreement has a particular strategic importance. With improved US-Iranian relations, China will be able to develop its strategic relationship with Iran, without opposition from the United States. Pakistan, a respected partner with China, will serve to accelerate the establishment of economic partnership between Afghanistan, Pakistan and Iran and will promote the Chinese initiative of the Economic Belt of the Silk Road in the region.


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    nuclear agreement, oil export, business cooperation, economic sanctions, negotiations, Iran, China, Vienna
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