China and Iran, both subject to US sanctions, signed a 25-year cooperation agreement in Tehran on Saturday.
Why it’s important: According to a draft of the agreement reached by the New York Times, China agreed to invest $ 400 billion in Iran’s economy during this period in exchange for a steady and heavily discounted oil supply from the country.
What they say: “Relations between the two countries have now reached the level of strategic partnership and China is trying to thoroughly improve relations with Iran,” Chinese Foreign Minister Wang Yi told Reuters.
- “Our relations with Iran will not be affected by the current situation, but will be permanent and strategic.”
Thought bubble, through Bethany Allen-Ebrahimian, of Axios: Iran has become increasingly dependent on China, which offers it a rare economic life amid heavy US sanctions.
The big picture: The deal could deepen China’s influence in the Middle East and undermine U.S. efforts to keep Iran isolated because of the unresolved dispute over Tehran’s nuclear program, according to the NYT.
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