China and Iran Readjust Relations: Economic Implications of the Suspended Nuclear Deal

The conclusion of the multilateral agreement about the Iranian nuclear issue in June 2015 was widely predicted to accelerate both the scope and size of commercial interactions between China and Iran. As a result, the two countries talked about the prospect of increasing their bilateral commerce from less than $50 billion to $600 billion within a short period of time. Later, Beijing and Tehran moved to sign a 25-year strategic agreement partly to achieve that critical objective. The American withdrawal from the nuclear deal under the Trump administration in May 2018, however, put a halt to the rosy trade prospect of $600 billion between China and Iran. The contentious 25-year pact laid in the limbo in the wake of the crippling regime of international sanctions in which Washington spearheaded against Iran upon quitting the Joint Comprehensive Plan of Action. Shirzad Azad argues how China’s overall commercial relationship with Iran has turned out to be unusually asymmetrical and lopsided over the past several years. In some areas, Sino–Iranian business partnership surprisingly dwindled to a trickle, while in several other fields the presence of Chinese brands and technological expertise in Iran unexpectedly reached an all-time high.