Iran, China agree $600-billion trade deal after sanctions

DUBAI: Iran and China agreed to expand bilateral ties and increase trade to $600 billion in the next 10 years, President Hassan Rouhani said on Saturday during a visit to Tehran by Chinese President Xi Jinping.

Xi is the second leader of a UN Security Council member to visit Tehran after the nuclear deal Iran struck with world powers last year. Russian President Vladimir Putin visited Tehran in November.

Iran emerged from years of economic isolation this month when the United Nations’ nuclear watchdog ruled it had curbed its nuclear programme, clearing the way for the lifting of UN, US, and European Union sanctions.

“Iran and China have agreed to increase trade to $600 billion in the next 10 years,” Rouhani said at a news conference with Xi broadcast live on state television.

“Iran and China have agreed on forming strategic relations (as) reflected in a 25-year comprehensive document,” he said.

Iran and China signed 17 accords on Saturday, including on cooperation in nuclear energy and a revival of the ancient Silk Road trade route, known in China as One Belt, One Road.

“China is still heavily dependent on Iran for its energy imports and Russia needs Iran in terms of its new security architecture vision for the Middle East,” said Ellie Geranmayeh, policy fellow at the European Council on Foreign Relations.

“Iran plays quite an integral role for both China and Russia’s interests within the region, much more than it does for the Europeans,” Geranmayeh said.

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