ECONOMIC INTERACTION BETWEEN CHINA AND IRAN IN TRADE AND INVESTMENT

Abstract

The Chinese-Iranian strategic partnership, solidified following the 1979 Islamic Revolution in Iran, is grounded in pragmatic economic and geopolitical interests. Aspiring to global power status, China provides Iran with investments, diplomatic support, and a market for its oil, thereby securing access to energy resources and opportunities to advance the Belt and Road Initiative. Amid Western sanctions, Iran leverages China as a critical partner to ensure economic stability and counter U.S. influence. The collaboration spans energy, infrastructure, trade, and military-technical domains but is constrained by the asymmetry of relations, sanctions, and Beijing’s cautious policy of avoiding a formal strategic alliance to maintain balance with other partners.