What does the China-Iran Agreement mean for the China-Pakistan Economic Corridor?

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The new agreement between China and Iran is a huge victory for Pakistan, but a greater loss for India.

The scale and scope of China’s “Belt and Road Initiative” continue to expand. Recently, the details of the 25-year long strategic partnership between China and Iran have been exposed, arousing intense debate among Iranian.

The plan calls for up to $400 billion in investments in telecommunications (5G), infrastructure, banks, and free trade zones within 25 years, and it is controversial that the scale of military cooperation will be greatly expanded, including intelligence sharing and weapon design.

Many doors along the way:

CPEC is one of the main corridors of the Silk Road Economic Belt. CPEC is the largest.

 In the past five years, China has provided funding for the construction of many roads in the country, while Chinese state-owned enterprises have built power plants.

In the long run, roads, pipelines, and railway networks will connect the port city of Gwadar in the southern part of Pakistan’s Sluchi province with Kashgar in the Xinjiang region of western China, thus opening up new trade channels.

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Geopolitical realities will limit Pakistan’s benefit from the Iran-China partnership:

However, like CPEC itself, Islamabad should wait for the sudden opening of champagne. Geopolitical realities will limit Pakistan’s benefit from the Iran-China partnership.

Iran’s Sunni enemies in the Middle East will not be keen to see the Islamic Republic as the economic lifeblood, and China and Pakistan may also be caught in a dispute between Shiite and Sunni forces in the Middle East.

Iran’s accession to CPEC will not make Pakistan truly a trade and logistics hub connecting China with the Middle East, Turkey, and Europe. Whether Iran will help or hinder this goal is still undecided.

India once again thwarted its regional strategic ambitions. CPEC may have the potential for internationalization, but the question remains whether Pakistan can take advantage of this situation. If Pakistan can use its strategic location to become the economic backdoor of China’s western provinces, then the answer is definitely yes.

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About Post Author

Helen Dunmore

Hey, I'm Helen Dunmore an article writer from London Ontario, Canada. I had done a master's in mass communication and M.Phill in political science and attended many College Journalism Broadcast programs where I wrote and won. I previously had attended Humber College for media studies which included writing for television and news. I have written several publications for many news related websites. Have experience more than 7 years, yeah quite a lot for you. I love writing, an expert in article writing. Currently doing article writing for many blog posts and work as an author for many web sites. Reading is my hobby, love books more than anything in my life.

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