The China-Iran relationship has evolved in recent years into a partnership more pointedly opposed to the U.S.-led international order.Beijing views Tehran’s opposition to the United States as augmenting China’s global influence. The Iranian regime’s destabilizing actions in the Middle East complicate U.S. efforts to shift its focus to the Indo-Pacific.
China has boosted its diplomatic engagement with Iran since 2015, coinciding with the signing of the Iran nuclear deal, or JCPOA, and the gradual easing of international sanctions on Iran.Following U.S. withdrawal from the JCPOA, China has continued to engage Iran—including through violation of U.S. sanctions—and used bilateral summits to demonstrate the two countries’ opposition to Washington.
Iran views China as a critical economic lifeline and diplomatic supporter against pressure from the United States. A 25-year bilateral cooperation agreement signed in March 2021 is the latest indication of the two sides’ willingness to coordinate more closely. The agreement also signals China’s capacity to work with U.S. adversaries to undermine U.S. influence in the region.
China has remained Iran’s top economic partner despite significantly reducing its economic engagement through partial compliance with U.S. sanctions. As Iran’s primary oil customer, China is a valuable asset to the Iranian regime while deepening its leverage over the country. By also investing in Iran’s energy infrastructure and regional integration, China seeks improved access to Iranian energy and raw materials.
China and Iran maintain modest defense cooperation and share intelligence, reportedly including information that led to the dismantling of much of the U.S. espionage network in both countries.China has supported Iran’s cruise and ballistic missile programs for decades, including through technology likely utilized in at least one of the missile systems used in Tehran’s 2020 attack on U.S. forces in Iraq.Despite Tehran’s interest in procuring advanced weapons from China, Beijing may hesitate to sell the requested arms out of concern over jeopardizing relations with its Gulf partners.
China’s deepening ties with Iran’s regional adversaries, such as Saudi Arabia and the UAE, force China to strike a balance between its relationship with Iran and these emerging partners.Meanwhile, the Iranian regime eagerly seeks Chinese trade and investment but remains wary of becoming overly reliant on China economically.
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