Iran's access to China’s big market

Majid-Reza Hariri- Chair of Iran-China Joint Chamber of Commerce

The telephone conversation between Iran’s president and his Chinese counterpart is definitely important with economic benefits for both sides. However, the political aspect of the dialogue in the current situation should also be taken into account. Xi Jinping phoned Raeisi just one day after his significant conversation with US President Joe Biden, during which the two leaders traded stern warnings.

The phone call and the two presidents’ emphasis on the development of relations and the need to accelerate the implementation of the 25-year cooperation document has a crucial political message. Moreover, the Russian president’s visit to Iran three days after Biden's trip to the Middle East was politically significant and sent yet another message.

Iran and China have cordial political relations, and now they seek to extend them to other areas of cooperation, including economic, defense, security and cultural fields. The long-term cooperation deal is an example of the willpower on the part of Tehran and Beijing to diversify their cooperation. Now, the key issue is the implementation of this 25-year document and subcontracts needed for this goal.

In their phone talks, both presidents put much emphasis on speeding up the implementation of the comprehensive document, and this can be good news for Iranian businessmen and industry owners, especially in the private sector. Because the implementation will grant Iran access to China’s big market and in return will encourage Chinese investment in Iran's infrastructure.

That is why, as businessmen, we in the Iran-China Joint Chamber of Commerce demand that the government be more focused on implementing the partnership deal, laying the groundwork, and issuing required regulations.

Nearly 30 percent of Iran’s trade is carried out with China. A large portion of Iran’s oil is exported to China, too. However, the current volume of trade is still lower than its true potential. That is because large Chinese enterprises have some considerations in trading with Iran in fear of U.S. sanctions.

Implementing the 25-year cooperation agreement, concluding new contracts, and lifting sanctions can rapidly double the Tehran-Beijing volume of trade. Several measures taken by China during the last year have signaled the importance of implementing the agreement. To name a few, China approved Iran's permanent membership in the Shanghai Cooperation Organization (SCO), invited President Raeisi to take part in a BRICS summit, and concluded some contracts with Iran.