Latest news with #ChinaIranRelations
Malay Mail
25-06-2025
- Business
- Malay Mail
What's at stake: China's economic footprint in Iran, from oil to railways
BEIJING, June 25 — China, one of Iran's closest allies and the biggest buyer of its oil, has stayed on the sidelines of its conflict with Israel, urging a diplomatic solution. Following are details of its investments in Iran: Cooperation pact: Beijing has long backed US-sanctioned Tehran as part of efforts to deepen its strategic and economic heft in the Middle East. In 2021, they signed a 25-year cooperation deal, though full details were never disclosed and analysts say follow-up implementation has been weak. However, Chinese investment in Iran lags what Beijing puts into other nations in the region. 'Chinese state-owned companies have largely stayed away, mostly out of fear of running afoul of US sanctions,' said Bill Figueroa, a China-Middle East expert at the University of Groningen in the Netherlands. The American Enterprise Institute estimates total Chinese investment since 2007 at just under US$5 billion, while Chinese commerce ministry data shows its direct investments in Iran by the end of 2023 totalled US$3.9 billion. By contrast, Beijing invested more than US$8.1 billion in the United Arab Emirates between 2013-2022, and almost US$15 billion in Saudi Arabia between 2007-2024, the think-tank says. Energy: China imports around 43 million barrels of oil per month from Iran — accounting for some 90 per cent of Iran's oil exports and roughly 13.6 per cent of China's crude purchases. Around 65 per cent of total crude and condensate shipped through the Strait of Hormuz off Iran is destined for China, according to shipping data firm Vortexa. China National Petroleum Corp (CNPC) in 2016 signed a US$4.8 billion deal with France's Total to develop the offshore South Pars gas field in the Gulf with an Iranian state firm. CNPC's stake of 30 per cent was worth around US$600 million. However, the state-owned petroleum giant pulled out of the project due to US pressure in 2019. CNPC also signed a deal in 2009 to develop the North Azadegan oil field, with the first phase valued at about US$2 billion. The first cargo of 2 million barrels was shipped to China in 2016. China's biggest refiner Sinopec signed a US$2 billion deal to develop the Yadavaran oil field in 2007. In 2017, Sinopec signed a contract worth about US$2.1 billion to upgrade a refinery in Abadan near the Gulf coast. It remains under construction. In 2024, China's LDK Solar reached a deal with Iran's Ghadir Investment Group for a large-scale photovoltaic power plant with investment of around 1 billion euros (US$1.16 billion). It was expected to generate 2 billion kilowatt-hours of solar power annually. Railways: In 2018, China National Machinery Industry Corporation signed a 5.3 billion yuan (US$738 million) deal to expand and renovate a railway connecting Tehran with the cites of Hamedan and Sanandaj to improve connectivity in west Iran. Also that year, a subsidiary of China Railway Construction Corporation signed a contract worth 3.5 billion yuan for the 263 km Kermanshah-Khosravi railway project in west Iran, with a construction period of 48 months. China's Norinco International signed an agreement in 2018 to build the first tramway line in the Iranian city of Qazvin, at about US$150 million. In 2017, China Eximbank and an Iranian state bank signed a US$1.5 billion deal to upgrade and electrify a 926 km railway between Tehran and the eastern city of Mashhad as part of Beijing's Belt and Road Initiative. However, the project has stalled over financing negotiations. Metals In 2017, China's Metallurgical Corporation (MCC) invested around US$350 million in the Sepid Dasht steel plant and won a design contract for a pelletising project. However, local media reported that the projects were delayed by financing issues. — Reuters
The Independent
25-06-2025
- Business
- The Independent
Beijing, a longtime friend of Tehran, turns to cautious diplomacy in Iran's war with Israel
When Israel attacked Iran nearly two weeks ago, the Chinese government, a longtime friend of Iran, jumped into action — at least, when it came to words. It condemned the attacks. Its leader, Xi Jinping, got on the phone with the Russian leader and urged a ceasefire. Its foreign minister spoke with his counterpart in Iran. But that's where China stopped. The usual rhetoric was delivered. De-escalation and dialogue were trumpeted. Yet China offered no material support. Despite Beijing 's clout as a near-peer rival to the United States and its ambition to play a bigger role on the world stage, Beijing refrained from offering military support to Iran, let alone getting directly involved in the conflict. The decision underscored the limitations it faces in the Middle East. 'Beijing lacks both the diplomatic capabilities and the risk appetite to quickly intervene in, and to think it can successfully navigate, this fast-moving and volatile situation," said Jude Blanchette, director of the China Research Center at RAND. Given the tangled politics of the Middle East, where China holds substantial economic and energy stakes yet wields minimal military influence, Beijing 'isn't inclined to stick its neck out,' Blanchette added. Instead, the Chinese government opts to remain 'a measured, risk‑averse actor.' China weighs commercial interests Zhu Feng, dean of the School of International Relations at Nanjing University in eastern China, said volatility in the Middle East is not in China's interests. 'From China's point of view, the Israel-Iran conflicts challenge and impact China's business interests and economic security,' Zhu said. 'This is something China absolutely does not want to see." After the Iranian parliament floated a plan to shut down the strategically located Strait of Hormuz over the weekend, China spoke against it. 'China calls on the international community to step up efforts to de-escalate conflicts and prevent regional turmoil from having a greater impact on global economic development,' said Guo Jiakun, a spokesman for the Chinese foreign ministry. On Tuesday, following the ceasefire announcement, U.S. President Donald Trump wrote in a social media post: 'China can now continue to purchase Oil from Iran,' suggesting the ceasefire would prevent the disruption of Iranian oil production. A 2024 report by the U.S. Energy Information Administration contained estimates suggesting that roughly 80% to 90% of the oil exported by Iran went to China. The Chinese economy could struggle to preserve its industrial production without the roughly 1.2 million barrels of oil and other fossil fuels provided by Iran. Craig Singleton, senior China fellow at the Washington-based think tank Foundation for Defense of Democracies, summed up Beijing's responses as 'steady oil buys and ritual calls for 'dialogue'.' 'That's about it," Singleton said. 'No drones or missile parts, no emergency credit line. Just words calibrated to placate Tehran without rattling Riyadh or inviting U.S. sanctions.' Beijing's muted responses also expose the gap between China's great-power rhetoric and its real reach in the region. Said Singleton: 'China's Gulf footprint is commercial, not combat-ready. When missiles fly, its much-touted strategic partnership with Iran shrinks to statements. Beijing wants discounted Iranian oil and a 'peace-broker' headline, while letting Washington shoulder the hard-power risks.' In statements, China sides with Iran and pledges to mediate Since the onset of the war, Beijing — which brokered a diplomatic rapprochement between Iran and Saudi Arabia in 2023 — stood by Iran's side and urged talks. At the United Nations, China, a permanent member of the Security Council, teamed up with Russia and Pakistan in putting forward a draft resolution condemning 'in the strongest terms' the attacks against peaceful nuclear sites and facilities in Iran. They called for 'an immediate and unconditional ceasefire" even though the United States, another permanent member on the council, is almost certain to veto the proposal. Shortly after Israel attacked Iran, Chinese Foreign Minister Wang Yi had a phone call with his Iranian counterpart, Abbas Araghchi, and told him that 'China explicitly condemned Israel's violation of Iran's sovereignty, security and territorial integrity.' Wang, using common diplomatic language, said China was 'ready to maintain communication with Iran and other relevant parties to continue playing a constructive role in de-escalating the situation." Wang later spoke with foreign ministers of Oman and Egypt; both nations are key mediators in the region. And late last week, before the U.S. got involved militarily, Xi spoke with Russian President Vladimir Putin; the two agreed to stay in closer contact over Iran and work toward de-escalation. But China stayed away from any direct involvement, and Russia also had muted responses to the Israel-Iran conflict. Iran is an important link in Xi's ambitious global project Belt and Road Initiative, and in 2023 joined the Shanghai Cooperation Organization, a security group by Russia and China to counter the U.S.-led NATO. It has conducted joint exercises with China, including this year's 'Maritime Security Belt 2025' in the Gulf of Oman, in which Russia also took part. On Wednesday, Beijing will convene a meeting of defense ministers of SCO member nations. As important as Iran is to China, it is only part of Beijing's calculus, according to an analysis by the Soufan Center, a New York-based organization that focuses on global security challenges. In an intel brief, the center said the conflict has revealed that Beijing's support for its partners, especially those in confrontation with the United States, 'is limited by a complex matrix of interests, including its desire to avoid alienating major economic partners and escalating tensions with the West." ___ AP researcher Yu Bing in Beijing and writers Edith M. Lederer at the United Nations and Josh Boak in Washington contributed to this report.
Al Arabiya
24-06-2025
- Business
- Al Arabiya
Trump says China can continue to buy Iranian oil
China can continue to buy Iranian oil, US President Donald Trump said Tuesday in what appeared to be relief for Tehran from sanctions Washington has previously imposed to punish the trade. 'China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the US, also,' Trump wrote in a post on his Truth Social platform as he travelled to a NATO summit in The Hague. China's position as the main buyer of Iranian oil has served as a crucial lifeline for Tehran as its economy is battered by crippling international sanctions. Beijing buys more than 90 percent of Iran's oil exports, according to the analysis firm Kpler. It imported 1.3 million barrels of Iranian crude oil a day in April, down from a five-month high in March. Last month the United States announced fresh sanctions on Iranian oil sales to Beijing, however, as Trump's administration continued its 'maximum pressure' campaign against Tehran. China has condemned recent US bombing strikes on Iran's nuclear facilities and called for parties in the region, 'especially Israel,' to de-escalate. And it has called for a political solution to help a declared ceasefire hold. But analysts say that the fighting between Israel and Iran has severely reduced Beijing's regional leverage.
Reuters
24-06-2025
- Business
- Reuters
What are China's economic interests in Iran?
BEIJING, June 24 (Reuters) - China, one of Iran's closest allies and the biggest buyer of its oil, has stayed on the sidelines of its conflict with Israel, urging a diplomatic solution. Following are details of its investments in Iran: COOPERATION PACT: Beijing has long backed U.S.-sanctioned Tehran as part of efforts to deepen its strategic and economic heft in the Middle East. In 2021, they signed a 25-year cooperation deal, though full details were never disclosed and analysts say follow-up implementation has been weak. However, Chinese investment in Iran lags what Beijing puts into other nations in the region. "Chinese state-owned companies have largely stayed away, mostly out of fear of running afoul of U.S. sanctions," said Bill Figueroa, a China-Middle East expert at the University of Groningen in the Netherlands. The American Enterprise Institute estimates total Chinese investment since 2007 at just under $5 billion, while Chinese commerce ministry data shows its direct investments in Iran by the end of 2023 totalled $3.9 billion. By contrast, Beijing invested more than $8.1 billion in the United Arab Emirates between 2013-2022, and almost $15 billion in Saudi Arabia between 2007-2024, the think-tank says. ENERGY: China imports around 43 million barrels of oil per month from Iran - accounting for some 90% of Iran's oil exports and roughly 13.6% of China's crude purchases. Around 65% of total crude and condensate shipped through the Strait of Hormuz off Iran is destined for China, according to shipping data firm Vortexa. China National Petroleum Corp (CNPC) in 2016 signed a $4.8 billion deal with France's Total to develop the offshore South Pars gas field in the Gulf with an Iranian state firm. CNPC's stake of 30% was worth around $600 million. However, the state-owned petroleum giant pulled out of the project due to U.S. pressure in 2019. CNPC also signed a deal in 2009 to develop the North Azadegan oil field, with the first phase valued at about $2 billion. The first cargo of 2 million barrels was shipped to China in 2016. China's biggest refiner Sinopec signed a $2 billion deal to develop the Yadavaran oil field in 2007. In 2017, Sinopec signed a contract worth about $2.1 billion to upgrade a refinery in Abadan near the Gulf coast. It remains under construction. In 2024, China's LDK Solar reached a deal with Iran's Ghadir Investment Group for a large-scale photovoltaic power plant with investment of around 1 billion euros ($1.16 billion). It was expected to generate 2 billion kilowatt-hours of solar power annually. RAILWAYS: In 2018, China National Machinery Industry Corporation signed a 5.3 billion yuan ($738 million) deal to expand and renovate a railway connecting Tehran with the cites of Hamedan and Sanandaj to improve connectivity in west Iran. Also that year, a subsidiary of China Railway Construction Corporation signed a contract worth 3.5 billion yuan for the 263 km Kermanshah-Khosravi railway project in west Iran, with a construction period of 48 months. China's Norinco International signed an agreement in 2018 to build the first tramway line in the Iranian city of Qazvin, at about $150 million. In 2017, China Eximbank and an Iranian state bank signed a $1.5 billion deal to upgrade and electrify a 926 km railway between Tehran and the eastern city of Mashhad as part of Beijing's Belt and Road Initiative. However, the project has stalled over financing negotiations. In 2017, China's Metallurgical Corporation (MCC) invested around $350 million in the Sepid Dasht steel plant and won a design contract for a pelletising project. However, local media reported that the projects were delayed by financing issues. ($1 = 7.1783 Chinese yuan renminbi) ($1 = 0.8623 euros)
Fox News
19-06-2025
- Business
- Fox News
Mystery flights from China to Iran raise questions amid Israel conflict
Print Close By Andrew Miller, Cameron Arcand Published June 19, 2025 Several Boeing 747s have been spotted on radar leaving China for Iran over the last week, according to reports, sparking concerns that the CCP is helping the Middle Eastern nation transport cargo or people out of the country as Israel continues to strike the country's nuclear facilities. Starting on June 14th, FlightRadar24 shows that at least five flights traveled from China to Iran, and The Telegraph reported that the "mystery transport planes" had flown westward along northern China before crossing into Kazakhstan, south through Uzbekistan and Turkmenistan, and then fell off radar as they approached Iran. Additionally, the report indicated that the flights had a final destination of Luxembourg but don't appear to have ever crossed into European airspace. Some experts have speculated that these types of planes are typically used for transport and could be evidence of China aiding its longtime ally Iran during the conflict with Israel, although Fox News Digital has not independently confirmed the nature of the flights. 'INSTINCTS FOR RESTRAINT': SENATE DIVIDED OVER WHO GETS TO DECLARE WAR "I think it's important to remember what the relationship is, forty-three percent of China's oil and gas comes from the Middle East, a large volume of that from Iran," Robert Greenway, director of the Heritage Foundation's Center for National Defense, told "The Ingraham Angle" on Wednesday night. "It likes to buy sanctioned oil below market value, and that fuels the Chinese economy and also its military ambitions, and so, that's the central relationship. They've been relatively quiet – in fact, extremely quiet – about the current conflict and coming to Iran's assistance. We also know that a large fire in Bandar-Bas port was Chinese solid propellant for missiles that exploded and created a tremendous amount of damage just about a month ago. I think it's unlikely to see Chinese arms shipments under the circumstances to Iran. It's more likely that Iran may be removing material or personnel or regime valuables to safe haven in light of the conflict. I think that's probably the extent to which China is willing to accept the risk associated with the current circumstances." HOW BUNKER BUSTER BOMBS WORK AND HOW THEY COULD DESTROY IRAN'S FORDOW NUCLEAR SITE In 2021, Fox News Digital reported that Tehran and Beijing signed a 25-year cooperation deal amidst great fanfare in the Iranian capital. University of Tehran Professor Mohammad Marandi, who is close to the regime, told Fox News that it is about much more than what's on paper. "This strategic partnership is important because it allows Iran and China to build a roadmap for long-term relations that will be much more fruitful," he said. "It's also a signal being sent to the United States. The more the U.S. tries to isolate Iran and China, the more it causes countries like Iran and China to move more closely to each other." TUGBOATS, CRUISE SHIPS AND FLIGHTS: ISRAEL BEGINS EMERGENCY EVACUATION OF CITIZENS AMID IRAN WAR Some have cast doubt on the flights representing a nefarious connection between the two nations, including Atlantic Council fellow Tuvia Gering who posted on X that an aviation expert told him the flights are "nothing to write home about." "There are regular cargo flights by the Luxembourg-based freight company from several locations in China to Europe, with a stopover in Turkmenistan (just a few dozen kilometers from the Iranian border)," Gering wrote. "Some flight tracking websites lose the tracking signal shortly before landing and continue to show a projected route that appears to enter Iranian airspace. The sites clearly indicate that this is an estimated path; checking the aircraft tail numbers shows they take off again from Turkmenistan a few hours later, and reviewing the flight history of these routes shows they always land in Ashgabat and do not continue into Iran. All this is before even considering the obvious logic that a major European cargo company is highly unlikely to be the channel through which China transfers its super-advanced, top-secret strategic weapons to Iran." ISRAEL'S WAR WITH IRAN IS A GLOBAL FLASHPOINT. AMERICA MUST LEAD BEFORE IT SPREADS Tensions between Iran and Israel have escalated significantly in recent days, with the United States contemplating whether it will get directly involved in striking Iran. President Donald Trump has repeatedly said that Iran cannot have a nuclear weapon, and he is expected to meet with national security and defense leaders again on Thursday. CLICK HERE TO GET THE FOX NEWS APP "Yes, I may do it. I may not do it. I mean, nobody knows what I'm going to do. I can tell you this that Iran's got a lot of trouble, and they want to negotiate," Trump said Wednesday. "And I said, why didn't you negotiate with me before all this death and destruction? Why didn't you go? I said to people, why didn't you negotiate with me two weeks ago? You could have done fine. You would have had a country. It's very sad to watch this," the president added. Print Close URL
