TEHRAN: Iran and China have long enjoyed high level of economic relations with China being dependent on its oil imports from Iran and the latter being interested in foreign investment which such fast developing-economy as China could offer.
Following the lifting of nuclear related sanctions, Iran started to ramp up its oil production, and, therefore, the relationship between the two states could grow even further.
Iran’s exports to China has reached a stand of $13.88 billion in the first three quarters of the current year showing a 27.5 percent increase compared to the same period last year.
A total of $27 billion worth of goods were exchanged between the two countries during the period, ISNA reported. Oil took the lion’s share ($8.74 billion) of Iran’s exports to China, which imports 633,000 barrels of crude from Iran on a daily basis.
Meanwhile, Iran’s non-oil exports during the nine months registered a 28.1 percent rise in tonnage and 27.8 percent increase in value. China heavily relies on oil imports from Iran. The country was a top consumer of Iranian oil even during the three years of international sanctions that targeted Iran’s nuclear program.
Chinese companies were increasingly active in Iran, whose oil and gas sector requires investment capital and technology. The two countries enjoy high level of economic, trade and energy ties. China previously invested in a number of major oil projects, including the development of huge oil fields.
In July, state-owned China National Petroleum Corporation took a 30 percent stake in a project to develop Iranian South Pars – the largest natural gas field in the world.
Beijing also signed a $3 billion deal to upgrade Iran’s oil refineries in January. Moreover, China’s EXIM bank financed some 26 projects in Iran so far, providing around $8.5 billion in loans. In addition, China Export and Credit Insurance Corp, or Sinosure, also signed a memorandum of understanding with Iran in May to help Chinese companies invest in Iranian projects.
