TEHRAN (Iran News) –China’s economic supremacy in Asia from this standpoint, that today we can see the cracks in the economic collapse of the U.S. much clearer, has tremendous importance. Almost all economic reports in the past three months indicate this fact that some factors, like bipolarism in the U.S., its challenges during the November 2020 presidential election and its simultaneity with the outbreak of Coronavirus, and incapability of the management factor in curbing the virus, and then the decline in the economic growth, all have caused the International Monetary Fund (IMF) to claim in its report that dollar’s share of the forex reserves of the central banks in the world is declining.
This report which was published in the third quarter of 2020 and everybody can see it indicates a fact that dollar’s share in the central banks’ forex reserves has declined to a record low in the past 25 years and it has stood around 59 percent. And antithetical to this biggest economic event, China’s national currency yuan with 2.25 percent, Canada’s dollar with 2 percent and Australian dollar with 1.82 percent have increased their shares in the forex reserves of the central banks in the world. And this level of record has been unprecedented in the history of the world economy.
The report is just one of the indexes showing the U.S. economy is in the bottleneck that today Americans are facing with a condition that the nightmare of Iran and China’s agreement has shaken their peace of mind. This concern has grown in a way that veteran U.S. diplomat and U.S. Special Representative for Iran Elliott Abrams in an article which was published in the American semi-monthly magazine the National Review goes through the Iran-China 25-Year Cooperation Agreement and draws up two different scenarios for the agreement, considering this point that the published details of this agreement whether to be right or wrong.
Abrams in his article writes although Iran and China have so far refrained from publishing the details of their agreement, but experts said it was largely unchanged from an 18-page draft obtained last year by The New York Times. That draft detailed $400 billion of Chinese investments to be made in dozens of fields, including banking, telecommunications, ports, railways, health care and information technology, over the next 25 years. In exchange, China would receive a regular — and, according to an Iranian official and an oil trader, heavily discounted — supply of Iranian oil (overriding sanctions on oil sales).
If one looks at the concepts and the points touched in this article, he can easily notice that almost all efforts in the past ten years by the U.S. and Europe for sanctioning Iranian nation and encouraging them to revolt against the Islamic Republic establishment with goals like submission, collapse or toppling have failed.
Regardless of Abrams’ article, today in any remarks and articles of any western official who reacts regarding this issue, this similarity is seen with what Abrams has said. Hereby, I should stipulate that this cooperation agreement currently has no figures or certain figures especially on the amount of investment or financial resources but the report which had been earlier published by the New York Times on the details of the document had faced a large number of reactions both inside and outside Iran.
The report claimed that Iran and China have reached an agreement on China’s 400-billion dollar investment in Iran for 25 years and in exchange, Iran will provide China with some concessions like heavily discounted oil. Regardless of the New York Times’ claimed details of the agreement, U.S. President Joe Biden’s short remarks on this agreement became disputable. On March 28 and in response to a question about the agreement by a reporter at Delaware Air Base, Biden said, “ I have concerned about that for a year,”
It seems reports and data which have been provided to Biden in the past years from different channels either openly or secretly have made Biden realize sanctions have become completely ineffective and China’s arrival for cooperation with Iran has automatically boosted fully Iran’s self-confidence for resisting against sanctions and circumventing them, and he puts all the blame on Donald Trump’s foul-ups and unstudied pullout of the JCPOA.
However one should notice this point that China’s policy for investment in West Asia is not focused merely on the Islamic Republic of Iran. The Chinese have over 3,000 billions of dollars of forex reserves abroad and if they shift it for investment into the West Asia, their money will at least been doubled in five years and simply this economic factor will make China as the master of the world economy and Asia will benefit a huge economic interest.
That we say this key dynamic and promising move will start with the Islamic Republic of Iran is because of this fact that the Strait of Hormuz is the key of Iranians, and the Chinese prefer to enter into a such a huge volume of investment cooperation in Asia with the key-holder of the Persian Gulf, Iran, with its over 2,200 kilometers of water borders because firstly, the Westerners would not be able to attain this stand for creating trouble for them and secondly, they can also enjoy having the hegemonic dominance of a country which is not of the type of subservient countries to the West.
So one can easily claim that the agreement between Iran and China will be in some way the lifesaver for the Asian economy.