The Iran–China 25-year Cooperation Program or Comprehensive Strategic Partnership between I.R. Iran, P.R. China is a 25-year cooperation agreement on the further development of Iran–China relations signed in

Tehran Tehran (; , ''Tehrân'') is the capital and largest city of Iran. It is the capital of Tehran province, and the administrative center for Tehran County and its Central District (Tehran County), Central District. With a population of around 9. ...

by the Chinese and

Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...

ian foreign ministers on 27 March 2021; the final details of the agreement have yet to be officially announced. Under a draft of the 25-year agreement (signed on 24 June 2020 in

Beijing Beijing, Chinese postal romanization, previously romanized as Peking, is the capital city of China. With more than 22 million residents, it is the world's List of national capitals by population, most populous national capital city as well as ...

) previously obtained by ''

The New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...

'', China is to invest in Iran's economy over that time period in exchange for a steady and heavily-discounted supply of oil from Iran. The key details of the deal were originally reported by British journalist and author, Simon Watkins, in an article published on 3 September 2019 in ''Petroleum Economist'' stating that the agreement includes up to towards developing Iran's

oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) and lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturate ...

gas Gas is a state of matter that has neither a fixed volume nor a fixed shape and is a compressible fluid. A ''pure gas'' is made up of individual atoms (e.g. a noble gas like neon) or molecules of either a single type of atom ( elements such as ...

and petrochemicals sectors and another investment of towards upgrading Iran's

transportation Transport (in British English) or transportation (in American English) is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...

and manufacturing infrastructure. According to Iranian authorities, reviving the Chinese

One Belt One Road Initiative The Belt and Road Initiative (BRI or B&R), known in China as the One Belt One Road and sometimes referred to as the New Silk Road, is a global infrastructure economic development, development strategy adopted by the government of China in 20 ...

is also part of the agreement. The report by ''Petroleum Economist'' stated that, according to the agreement, "China will be able to buy any and all Iranian oil, gas and petrochemical products at a minimum guaranteed discount of 12pc to the six-month rolling mean price of comparable benchmark products, plus another 6pc to 8pc of that metric for risk-adjusted compensation." The same report added that the agreement would allow China to deploy security personnel on the ground in Iran to protect Chinese projects, and that there would be additional personnel and materiel available to protect the eventual transit of oil, gas, and petrochemicals supplies from Iran to China, where necessary, including through the Persian Gulf. Later reports in other publications added that the deal included the leasing of Iranian islands to China were categorically denied by Iranian authorities, including by the Iranian foreign minister

Mohammad Javad Zarif Mohammad Javad Zarif (; born 8 January 1960) is an Iranian career diplomat and academic. He served as the vice president for strategic affairs from August 2024 to March 2025.ingle squaremeter of urland to China or any other country, nor granted any foreign country the exclusive right to take advantage of a handspan of Iran’s soil, and will not do this n the future��. Later on, the spokesman for the Iranian foreign ministry confirmed to reporters that "there is no handing over of the Iranian islands, no presence of military forces and no other illusions". Reports regarding heavily-discounted Iranian oil and petrochemical sales were also denied. Based on the agreement, China has agreed to inject $300-$400 billion by

foreign direct investment A foreign direct investment (FDI) is an ownership stake in a company, made by a foreign investor, company, or government from another country. More specifically, it describes a controlling ownership an asset in one country by an entity based i ...

into the Iranian oil, gas and petrochemical industries. The original plan for cooperation had been proposed by Chinese leader

Xi Jinping Xi Jinping, pronounced (born 15 June 1953) is a Chinese politician who has been the general secretary of the Chinese Communist Party (CCP) and Chairman of the Central Military Commission (China), chairman of the Central Military Commission ...

during a 2016 visit to Iran.

Iranian president The president of the Islamic Republic of Iran () is the head of government of the Islamic Republic of Iran and the second highest-ranking official, after the supreme leader. The first election was held in 1980 and was won by Abulhassan Banisa ...

Hassan Rouhani Hassan Rouhani (; born Hassan Fereydoun, 12 November 1948) is an Iranian peoples, Iranian politician who served as the seventh president of Iran from 2013 to 2021. He is also a sharia lawyer ("Wakil"), academic, former diplomat and Islamic cl ...

signed the final draft of the program on June 23 in a cabinet meeting and ordered the Iranian foreign ministry to finalize the negotiations. , Iran's parliament has yet to pass the deal but will likely follow suit. On 1 October 2020 President Rouhani sent a message to Xi Jinping about signing off on the program.

Background

The

Republic of China Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...

and Iran officially established diplomatic relations in 1937. In 1971, Iran recognized the

People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

(ruled by the

Chinese Communist Party The Communist Party of China (CPC), also translated into English as Chinese Communist Party (CCP), is the founding and One-party state, sole ruling party of the People's Republic of China (PRC). Founded in 1921, the CCP emerged victorious in the ...

) as the sole legitimate government of China, and likewise rescinded its recognition of the Republic of China (with its

Kuomintang The Kuomintang (KMT) is a major political party in the Republic of China (Taiwan). It was the one party state, sole ruling party of the country Republic of China (1912-1949), during its rule from 1927 to 1949 in Mainland China until Retreat ...

government now based in

Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...

) as a state. In the early years of the

Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...

, Iran and the People's Republic of China were on opposing sides of the

Iron Curtain The Iron Curtain was the political and physical boundary dividing Europe into two separate areas from the end of World War II in 1945 until the end of the Cold War in 1991. On the east side of the Iron Curtain were countries connected to the So ...

, with Iran being a part of the American-led

Western Bloc The Western Bloc, also known as the Capitalist Bloc, the Freedom Bloc, the Free Bloc, and the American Bloc, was an unofficial coalition of countries that were officially allied with the United States during the Cold War (1947–1991). While ...

from the 1953 coup and China being a part of the

Soviet The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...

-led

Eastern Bloc The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were a ...

until the latter broke away in 1961, thus siding with the Western Bloc until the end of the Cold War. Following the 1979 Iranian Revolution, which established the present-day

Islamic Republic of Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...

, the two states maintained their diplomatic relationship as Iran and the United States severed their bilateral ties during the Iran–U.S. hostage crisis. Iran was eventually put under international sanctions, although China still provided aid in the form of armaments to the Iranians during the

Iran–Iraq War The Iran–Iraq War, also known as the First Gulf War, was an armed conflict between Iran and Iraq that lasted from September 1980 to August 1988. Active hostilities began with the Iraqi invasion of Iran and lasted for nearly eight years, unti ...

. The Shanghai Cooperation Organization, on which Iran is an observer state, and the 25-year Iran–China program are both part of the Chinese

Belt and Road Initiative The Belt and Road Initiative (BRI or B&R), known in China as the One Belt One Road and sometimes referred to as the New Silk Road, is a global infrastructure development strategy adopted by the government of China in 2013 to invest in more t ...

, so it is likely that Iran's request for permanent membership will be repeated in the near future and will be accepted by all its members.

Draft

“This cooperation is a ground for Iran and China’s participation in basic projects and development of infrastructure, including the large 'Belt and Road' initiative, and an opportunity to attract investment in various economic fields, including industry, tourism, information technology and communication,” the presidential website quoted Rouhani as saying.

Ali Larijani Ali Ardashir Larijani (born 3 June 1958) is an Iranian politician and former military officer in the Islamic Revolutionary Guard Corps, who served as the Speaker of the Parliament of Iran from 2008 to 2020. He has been a member of the Expediency ...

is responsible for pursuing the program, according to Mahmoud Vaezi.

South Asia geo-economics effect

Iran has a similar project partnership with India and Russia, called International North–South Transport Corridor. There are also prospective developments in including Pakistan. Both Iran and Pakistan have had friendly relations with China in the past. The Belt and Road Initiative's benefits have the potential to outweigh the political and religious differences. Freer trade between Iran and Pakistan due to railways and ports could open up potential development in both countries. There would also be a stronger, unified front to pressure Afghanistan to follow suit. This potential agreement would also relieve India's pressure on Pakistan and China.

National Internet

A member of Iranian

Islamic Consultative Assembly The Islamic Consultative Assembly (), also called the Iranian Parliament, the Iranian Majles (Arabicised spelling Majlis) or ICA, is the unicameral national legislative body of Iran. The parliament currently consists of 290 representatives, an i ...

said in June 2020 that in the draft document "cooperation in the development of cyberspace" has been listed and noted that using National Information Network offensive sites and databases can be filtered.

Chinese military presence

According to the ''Petroleum Economist'' report of September 2019, the investment comes with a huge discount on oil, gas and petrochemical purchases, prioritizing China in implementing development projects and allowing 5,000 Chinese (foreign) security forces to be present on Iranian soil. There is also talk of deepening military cooperation, according to ''

''. The draft includes joint military exercises and training, research and weapons development, and intelligence sharing. The reason being to stop terrorism, trafficking in persons and drugs, and cross-border crimes. Those reports were categorically denied by Iranian authorities on numerous occasions. Article 146 of the Iranian constitution forbids the presence of foreign military bases on Iranian soil, even for peaceful purposes.

Effect on the Middle East

China's long term policy on non-political intervention has served it well in the pursuit of economic development. China has become economically involved with many nations in the Middle East and the BRI will likely include many of those already involved with China. Making such a deal with Iran is a contentious move and the effects are unclear. The Times article describes the move as conflicting with other regional players interests, primarily Saudi Arabia. Time however, explains that it is no different than any of the other economic deals within the BRI that include other nations like other Persian Gulf states and Egypt. China's increasing support for nations that are in conflict with one another may begin to work against it, like its support of Palestine and Israel. Though this may pale in comparison to the economic progress made through the BRI for the Middle East as a whole. Declining relations with the West and China's hands off policy in domestic matters of trade partners, makes China an appealing candidate for economic future of many states in the Middle East. The deal with Iran may be the model under which other nations begin to follow.

U.S. relations

Despite the escalations in tensions between the US, Iran and China, due to President Biden's administration, the Cooperation Plan is not in response to US actions. The deal had been in development since 2016, before the Trump administration left the Iran deal and prior to the changes in Chinese-U.S. trade relations. However, the U.S. has had a hand in pushing the two nations together in the past. Its policies in the past have inadvertently pressured the two to work together due to nuclear nonproliferation and economic sanctions. China is often extending an economic lifeline to Iran due to U.S. sanctions. Saied Khatibzadeh, spokesperson for Iran's Foreign Ministry denies that progress in the deal has been delayed till after the US 2020 election. As of October 19, 2020 the US has sanctioned six entities and two individuals for their activities involved with the Islamic Republic of Iran Shipping Lines (IRISL).