Skip to main content

The east-bound wind causes a storm in the West: Iran-China sign long-term trade agreement

by Behrooz Ghamari Tabrizi

A few months after the publication of his remarkable book, Adam Smith in Beijing, I had an illuminating conversation with Giovanni Arrighi about the significance of China in world history. The late sociologist was interested in knowing more about the subject of my scholarship–modern Iran and the Iranian revolution. When he saw my puzzled face, he told me that he believes that all this apprehension in the west about Iran, is actually rooted in apprehension about China. 

Arrighi thought that if there were any “mainstream” of world history, it ought to be located in the story of China, the only civilization that has shaped the world as a hegemon over many millennia with the exception of the last 250 years. The rise of the West, according to him is an aberration and China will define the future of the world history. 

For China to play that role, it needs sources of energy to feed its expanding economy and a firm foothold in the world trade network. And there is Iran with its vast sources of oil and natural gas, located in a key strategic position guarding the flow of oil from the strait of Hormuz and offering open access to the Indian Ocean trade routes. I do not subscribe to the view that the U.S. position on Iran can be reduced to a reflection of the American political establishment’s attitude toward China. But there indeed are signs that Iran’s east-bound realignment toward China is making possible a major transformation in the world political and economic order.

The fear in the West of a rising China became more acute this week with the announcement of a memorandum of understanding (MOU) between Iran and China of a 25-year trade agreement. Although the text of the agreement has not been released, news outlets around the world were quick to sound the alarm of a pending major transformation of the balance of power in the Middle East and beyond. 

Many observers have seen the move as a direct consequence of the Trump administration’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran Nuclear Deal. The Trump administration miscalculated the vulnerability of the Iranian government to his regime of maximum pressure. Trump and his perpetually hawkish advisers believed that withdrawing from the nuclear deal, and re-imposing draconian sanctions against Iran, would compel the Islamic Republic either to surrender to the demands of its international foes, or to face the wrath of its own sullen citizens whose livelihood the sanctions has directly threatened.

The latter did materialize last November, but it was met with a swift and brutal reaction by the Iranian security forces. The protests spread in many towns and cities around the country, but failed to sustain itself in the face of the state’s violent clampdown that left hundreds of protesters dead (according to the government’s own estimate 230 people were killed) and thousands arrested.

In addition to the state repressive apparatus that contained the protests, Iranians also remain deeply inimical toward an American policy that invests in inflicting suffering on people in order to encourage them to rise up against their own government. Iranians are well-versed in this ploy, which offers a painful reminder of Saddam Hussein’s justification of bombing Iranian cities. In order to stop the bombings, Saddam shamelessly declared, Iranians need to topple their regime.

The U.S. pulled out of the JOCPA hoping that the American withdrawal will render the agreement practically null and void. The Trump administration reinstituted crippling sanctions against Iran and exerted pressure on the EU and the UK to follow suit. 

Although the Europeans voiced their displeasure with the U.S. policy, they could not deliver their share of the agreement under the mounting American pressures. This was a sobering moment for the Europeans as they witnessed the United States’ ability to impose its political will onto the European banks and corporations. By threatening to levy sanctions against European banks and corporation that invest in the Iranian economy, in effect, the U.S. undermined the sovereignty of the EU members over their own financial and economic affairs.

Whereas the Europeans saw in the U.S. regime of maximum pressure against Iran the limits of their autonomy, China saw an opportunity for the realization of its global development strategy, known as Belt and Road Initiative. The initiative that was adopted in 2013 envisions a massive expansion of trade networks by investing in infrastructures of land and sea transport that will eventually establish a seamless web of production, distribution, and consumption of goods: a silk road for twenty-first century, as the Chinese promote the idea.

Iran figures in this strategy mightily, both in terms of the extension of the belt, i.e. roads and railway, and road, i.e. the sea routes, as well as the source of energy that the Chinese expansionist machine requires. Today China imports 10-million barrels of oil per day to fuel its economy. Theoretically, Iran can provide half of that need for the next two decades. If China’s plans to replace fossil fuel with the renewable energy do not pan out, Iran will remain a major source to calm the Communist Party’s anxieties about the future of the silk road for twenty-first century. 

The details of the trade agreement have not been released and both China and Iran still need to ratify it. The early reports indicate that China has agreed to a $400-billion investment over the next 25 years in the Iranian oil, gas, and transportation infrastructure. The investment will be frontloaded for the first five years and will also include cooperation in military and intelligence and a strategic alliance between the two countries over the security of the Persian Gulf trade routes. The agreement was first conceived during the Chinese premier’s visit to Iran in 2016. In all likelihood, it is going to end the Trump administration’s gambit to cajole the Iranian side to capitulate and entertain a new nuclear treaty with the United States and its Western allies.

The Iran-China agreement, if signed and ratified, will leave the Iranian exilic opposition, those who banked on the American maximum pressures on the Islamic Republic to gain political points, in an untenable position. These critics, who were also joined by the U.S. State Department, have compared the proposed bilateral pact to the 1828 Treaty of Turkmenchay between Persia and tsarist Russia, under which the Persians ceded control of the vast territories in the South Caucasus that included today’s Armenia, Azerbaijan, Abkhazia, and Georgia.

Ever since mid-nineteenth century, in the Iranian political lexicon, “Turkmenchay” has remained a point of reference to the vilest encroachments on the Iranian sovereignty. In the past two centuries, these encroachments have always been mounted by the same Western powers who forewarn Iranians today of the colonial consequences of surrendering the country’s vast resources to the Chinese.

No one knows whether this bilateral treaty would one-sidedly satisfy the Chinese imperial ambitions, a scenario that has played out in China’s appropriation of African port cities and mining towns. But one thing is clear that the objections of the U.S. and their Iranian supporters, whatever those objections might be, do not stem from their concerns for the protection of the Iranian sovereignty and Iranian peoples’ interests.

Source, links:



Comments

Popular posts from this blog

Gaza 2 Years On: Yanis Varoufakis & Katie Halper on the Flotilla, Israel's PR Machine & What’s Next

DiEM25   Two years since October 7, Katie Halper (‪@TheKatieHalperShow‬) and Yanis Varoufakis join host Mehran Khalili to break down Israel’s genocide in Gaza, the latest on the flotilla, Israel’s influencer PR push, and the “peace plan”.  

World leaders rebel against US & Israel: to save Gaza, they demand international intervention

Geopolitical Economy Report   Leaders from dozens of countries condemned the USA and Israel in their speeches at the UN General Assembly, demanding international intervention to save Gaza. Diplomats staged a mass walkout to protest Netanyahu's speech. Ben Norton shows how Latin American governments are standing in solidarity with Palestine.  

Freedom Flotilla Coalition & Thousand Madleens to Gaza sailing to break the siege

Freedom Flotilla Coalition   The next wave is already being prepared, help us buy the boats and get them ready to sail!  

The Rise of the Thielverse & the Surveillance State

The Chris Hedges YouTube Channel  Whitney Webb traces the Thielverse’s rise and the construction of the bipartisan modern surveillance state that Trump and his benefactors are deploying against dissidents and immigrants today.

Capitalism & Genocide - Yanis Varoufakis Speech at the Gaza Tribunal, 23rd October 2025, Istanbul

Yanis Varoufakis   On 23rd October, Yanis Varoufakis testified in front of the Jury of Conscience in the context of the Gaza Tribunal. His speech focused on the economic forces underpinning the genocide of the Palestinian people. In particular, he spoke on the manner in which capitalist dynamics have historically fuelled the white settler colonial project and, more recently, how the accumulation of a new form of capital - which he calls cloud capital - has accelerated, deepened and amplified the economic forces powering and propelling the machinery of genocide. 

Προβλέψεις ...

GR elections Update (15/9): Αναθεωρημένες προβλέψεις (μετά το δεύτερο debate): ΣΥΡΙΖΑ 28-30% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 11-13% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 2,5-3% ΠΟΤΑΜΙ 2,5-3,5% ΠΑΣΟΚ + ΔΗΜΑΡ 3-4% ΑΝΕΛ 2,5-3,5% Update (11/9): Αναθεωρημένες προβλέψεις (μετά το πρώτο debate): ΣΥΡΙΖΑ 25-28% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 11-13% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 3,5-4% ΠΟΤΑΜΙ 2,5-3,5% ΠΑΣΟΚ + ΔΗΜΑΡ 3-4% ΑΝΕΛ 2,5-3,5% Update (04/9): Αναθεωρημένες προβλέψεις: ΣΥΡΙΖΑ 23-25% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 12-15% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 3,5-4% ΠΟΤΑΜΙ 2,5-3,5% ΠΑΣΟΚ 3-4% ΑΝΕΛ 2,5-3,5% Update (29/8): Αναθεωρημένες προβλέψεις: ΣΥΡΙΖΑ 23-25% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 12-15% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 4-4,5% ΠΟΤΑΜΙ 4-4,5% ΠΑΣΟΚ 3-4% ΑΝΕΛ 2,5-3,5% Update : Αναθεωρημένες προβλέψεις: ΣΥΡΙΖΑ 26-27% ...

WikiLeaks reveals that literally every router in America has been compromised

The latest Wikileaks Vault7 release reveals details of the CIA’s alleged Cherry Blossom project, a scheme that uses wireless devices to access users’ internet activity. globinfo freexchange As cyber security expert John McAfee told to RT and Natasha Sweatte: Virtually, every router that's in use in the American home are accessible to hackers, to the CIA, that they can take over the control of the router, they can monitor all of the traffic, and worse, they can download malware into any device that is connected to that router. I personally, never connect to any Wi-Fi system, I use the LTE on my phone. That's the only way that I can be secure because every router in America has been compromised. We've been warning about it for years, nobody pays attention until something like WikiLeaks comes up and says 'look, this is what's happening'. And it is devastating in terms of the impact on American privacy because once the router...

Confirmed: US imperialists wanted to drag Russia into a war with Ukraine since at least 2019

globinfo freexchange   As we wrote in our previous article, after almost eight years, the US imperialists and the NATO criminals got what they wanted. They finally managed to drag Russia into a war with Ukraine.     We now have indisputable evidence for that, through a document by the top US think tank, RAND Corporation. In the preface of a 2019 report under the title Extending Russia, Competing from Advantageous Ground we read: [emphasis added]                            The purpose of the project was to examine a range of possible means to extend Russia. By this, we mean nonviolent measures that could stress Russia’s military or economy or the regime’s political standing at home and abroad. The steps we posit would not have either defense or deterrence as their prime purpose, although they might contribute to both. Rather, these steps ar...

Already happens: Capitalism destroys human labor force and goes to the next phase

by system failure Connecting the dots one can discover the most nightmarish scenarios. Destructive capitalism's next phase is the total substitution of the human labor force with robotic machines, or in other words, the hyper-automatization. There is a process taking place right now, and no one (or nearly no one) knows what would happen after its completion. The true picture behind unemployment From a latest article in PressTV: “ Did you know that there are nearly 102 million working age Americans that do not have a job right now? And 20 percent of all families in the United States do not have a single member that is employed. So how in the world can the government claim that the unemployment rate has “dropped” to '6.3 percent'?” “ Well, it all comes down to how you define who is 'unemployed'. For example, last month the government moved another 988,000 Americans into the 'not in the labor force' category.” http://www.presstv.ir/detail...

A response to misinformation on Nicaragua: it was a coup, not a ‘massacre’

There is so much misinformation in mainstream corporate media about recent events in Nicaragua that it is a pity that Mary Ellsberg’s article for Pulse has added to it with a seemingly leftish critique. Ellsberg claims that recent articles, including from this website, often “ paint a picture of the crisis in Nicaragua that is dangerously misleading. ” Unfortunately, her own article does just that. It looks at the situation entirely from the perspective of those opposing Daniel Ortega’s government while whitewashing their malevolent behavior and downplaying the levels of US support they have relied on. Her piece is an incomplete depiction of what is happening on the ground, ignoring many salient facts that have come to light and which have been outdated by recent events. The following is a brief response to Ellsberg’s main points from someone who lives in Nicaragua and has observed the situation directly and intimately: https://grayzoneproject.com/2018/08/15/a-res...