China-Iran increasing ties

GS-Paper-2: International issue and Political science Optional – UPSC PRELIMS – Mains Application

Context: China and Iran have signed a 25-year "strategic cooperation pact” which includes "political-economic and strategic components". The agreement comes as a major push from China to back Iran to deal with the continuing weight of sanctions reinstated by the US after its withdrawal from the Iranian nuclear deal. In this context, it is very important for India to redesign its strategy in West Asia and the Indian Ocean.

News: It will deepen relations between Iran and China and would establish a blueprint for "reciprocal investments in the fields of transport, ports, energy, industry and services. It forms a part of China's trillion-dollar Belt and Road Initiative, a plan to fund infrastructure projects and increase its influence overseas.

China and the Middle East

Iran relies on China as its largest trading partner. Chinese foreign minister, in his recent visit to West Asian nations, proposed a five-point initiative for achieving security and stability in the Middle East, advocating "mutual respect, upholding equity and justice, achieving non-proliferation, jointly fostering collective security, and accelerating development cooperation.”

Earlier, China and Russia called for the US to unconditionally return to the Joint Comprehensive Plan of Action as soon as possible and revoke the unilateral sanctions against Iran. In this context, they proposed "the establishment of a regional security dialogue platform to converge a new consensus on resolving the security concerns of countries in the region.”

India's Concerns

1. Military Partnership: China is also concluding a security and military partnership with Iran. China calls for “joint training and exercises, joint research and weapons development and intelligence sharing” to fight “the lopsided battle with terrorism, drug and human trafficking and cross-border crimes”. The sizable Chinese investments in Iranian port development may eventually be turned into permanent military access arrangements with Iran.

1. Strategic Stakes Around the Chabahar Port: With a growing Chinese presence in Iran, India is concerned about its strategic stakes around the Chabahar port project that it has been developing. The port is close to Gwadar port in Pakistan, which is being developed by China as part of its China-Pakistan Economic Corridor that links it to the Indian Ocean through BRI.
2. Geopolitical Rivalry: India finds itself caught in the geopolitical rivalry between the US & China over Iran. India’s dilemma also stems from the fact that robust support from the US is essential when it is locked in a border stand-off with China.
3. Impact on Relationship with Other Countries: Growing Chinese footsteps in Iran will have a long-lasting impact on India’s relationship with not only Iran but also Afghanistan and Central Asian nations.