China and Iran, both subject to U.S. sanctions, signed a 25-year cooperation agreement in Tehran on Saturday.
Why does it matter: China agreed to invest $ 400 billion in Iran’s economy over that period in exchange for a steady and heavily discounted supply of oil from the country, according to a draft agreement reached by the New York Times.
What they are saying: “Relations between the two countries have now reached the level of strategic partnership and China seeks to comprehensively improve relations with Iran,” said Chinese Foreign Minister Wang Yi, according to Reuters.
- “Our relations with Iran will not be affected by the current situation, but they will be permanent and strategic.”
Bubble, Bubble, via Bethany Allen-Ebrahimian from Axios: Iran has become increasingly dependent on China, which has offered a rare economic salvation amid heavy US sanctions.
The big picture: The deal could deepen China’s influence in the Middle East and undermine US efforts to keep Iran isolated due to the unresolved dispute over Tehran’s nuclear program, according to the NYT.
Go deeper … 43 senators to Biden: Use “full force” of diplomatic and economic tools to control Iran