China and Iran are reported to have concluded negotiations over a $400 billion deal, which would significantly expand military cooperation in arms development and intelligence sharing between the two countries over a 25-year period.
According to the New York Times, which published excerpts of the 18-page agreement on Sunday, the deal would also cover a range of other fields, such as finance, telecommunications, transport and energy, marking a significant rapprochement between the two powers.
In its opening sentence, the document states: “Two ancient Asian cultures, two partners in the sectors of trade, economy, politics, culture and security with a similar outlook and many mutual bilateral and multilateral interests will consider one another strategic partners”.
Under the terms of the agreement, China would be granted access to heavily discounted oil from Iran for 25 years, in return for a series of major investments into Iran’s economy, currently fledgling under crippling U.S. sanctions.
The deal, which has yet to be officially approved, would signify a new and more aggressive Chinese foreign policy in the region, potentially undermining Western attempts to reign in Iran and its terror proxy groups such as Hezbollah in Lebanon and Kata’ib Hezbollah in Iraq.
The move would also come amidst a backdrop of mounting international backlash against China, in light of widely perceived failures by the Chinese government to prevent the emergence of the Covid-19 pandemic, and the resultant debate surrounding economic over-reliance on Chinese imports.
