TEHRAN (Iran News) –Head of Investment and Consultancy Center of Tehran Chamber of Commerce, Industry, Mine and Agriculture (TCCIMA) says China has financed in several projects in Iran but its direct invest in Iran has been very insignificant because business and investment security in Iran is very low and countries do not tend to have direct investment in places where investment security has not been reinforced or its infrastructures are not prepared.
Speaking to ILNA, Ferial Mostofi said that China’s trade agreement with the Persian Gulf littoral states is in line with their economic interests, adding that such commercial agreements between the countries are something normal and Iran should not expect China to stop deal with other countries.
She added that China and other countries pursue their national interests and restoring trade based on this policy and Iran should also pursue this logical trend but in Iran economy is sacrificed by politics while this has nothing with other countries.
Mostofi reiterated that with restricting economy and communications to one or some certain countries, the country cannot reach high economic growth or inclusive economic development. She noted that reliance on merely one country in the international relations is not logical and there is no doubt China like other countries will consider their own interests and pursue providing their own and their people’s needs and Iran should act in a way that China and other countries should depend on it because of their demands and needs.
She reiterated that in the political world amicable relation is meaningless, noting that bilateral ties should be win-win one and to the benefits of two or some involved countries.
Mostofi then touched upon oil sales to China and said that China does not buy Iran oil with normal prices common in the international markets, in other words, Iran sells its oil to China under the market price and one cannot blame China because Iran is under sanctions and it is in a special condition and it has to give more discounts to win competition with its rivals.
She reiterated that if Iran had normal condition, there was no need to give concessions to any country without getting concessions.
On Iran’s share of China’s trade, she said that China’s economy is very big and it is incomparable with Iran, adding that China is the second economy in the world and its trade volume is amazing as its trade with the U.S. and Europe is over $2,000b while its trade with Iran at the best has not exceeded $50b and it is natural China to require many trade partners in any part of the world.
Mostofi added that before sanctions, the trade balance with China was positive in favor of Iran but now condition has changed because Iran’s economy is single-product. She reiterated that in Iran, finance and investment are confused and people have the same concept on them but they are two different issues as China has financed in some projects in Iran but its direct investment has been insignificant because of low investment security in the country.
She went on to say that China’s companies and traders do not risk their position for trade with Iran as the country is under the U.S. sanctions and even it is on the FATF black list and as long as Iran does not join the FATF, Chinese bank will do their best to minimize their cooperation with Iranians to avoid risk of U.S. punishment.
