29 Mar 2024
Tuesday 12 July 2016 - 22:14
Story Code : 222588

Why Iran plays a key role in China's new Silk Road project

Iran's geostrategic location has made it the key link in China's New Silk Road to Europe, while the Middle East has become one of Beijing's geopolitical pivots.





Following the inking ofthe Iranian nuclear deal, Beijing has bolstered its economic and political ties withTehran and withgood reason: Iran is not only a prospective supplier ofoil and natural gas butalso the key geostrategic region forthe China-led New Silk Road project.
"Iran is the key link ofthe "Silk Road" land route toEurope, asit is connected toChina bya railway throughTurkmenistan and Kazakhstan," Sarkis Tsaturyan, a Russian-Armenian historian and international policy analyst, writes inhis latest report forRegnum.


The analyst specifies that he is referring tothe Zhanaozen Gyzylgaya Bereket Kyzyl Atrek Gorgan railway, built between2009 and 2014.


Indian scholar and strategic affairs consultant Debalina Ghoshal echoes Tsaturyan's stance inher opinion pieceforYaleGlobal Online.

She points tothe fact that sincethe signing of the Iranian nuclear deal, Beijing is emerging asa principal beneficiary ofthe agreement.

While the West is still reluctant tofinance deals withIran outof fear ofviolating sanctions which remain inplace, China has jumped atthe opportunity tooutperform its Western competitors.

There are several reasons forChina's pivot tothe Middle East and most notably Iran.

According tothe scholar, Middle Eastern markets are essential forBeijing's New Silk Road initiative tocreate a network ofmanufacturing and logistics centers inCentral Asia and Europe.

"China's demand foroil imports is expected togrow from6 million barrels per day to13 million by2035, and Iran, ranked fourth inthe world inproven oil reserves and second interms ofnatural gas reserves, is considered a reliable supplier," she underscores.

Ghoshal points tothe fact that China's interest inIran goes "beyond its energy resources."
"It [China] has a keen interest inIran's geostrategic location, bordering both the Caspian Sea and the Persian Gulf. The location enables China tocarry outthe One Belt One Road agenda," the Indian scholar emphasizes.


Tsaturyan calls attention tothe fact that Beijing is racing againstthe clock tobuild a route throughIran tothe European Union: China wants tocreate a free trade zone withEurope tooutstrip the US' Transatlantic Trade and Investment Partnership (TTIP) project.


Indeed, China's European pivot is no less important thanthe Middle Eastern one.

"The ultimate prize inthe Silk Road plan also known inChina asthe 'One Belt, One Road' initiative is someplace else: Europe," Keith Johnson ofForeign Policy magazinewrote inearly June, explaining that the EU bloc represents a bigger and richer market forBeijing thanemerging economies alongthe Road.

Meanwhile, the Transcaucasia region has recently become a "battleground" forthe US and China, Tsaturyan adds.

Indeed, while Washington tries toexert its influence onGeorgia, Armenia and Azerbaijan the former Soviet Republics Beijing and Tehran are engaging the nations' interest inthe China-led project.
The analyst remarks, that inthis context, Iran's political maneuvers inArmenia and Azerbaijan have acquired a new meaning.


On the one hand, Tehran has confirmed its commitment toimplementing the Qazvin-Rasht-Astara railway project, withthe Rasht-Astara section connecting the rail networks ofIran and Azerbaijan,according toTasnim News Agency. The new corridor is set tobecome a multi-purpose route betweenIran, Azerbaijan, Europe and Russia.


On the other hand, Iran has abolished its visa regime withArmenia, prompting Bulgarian Prime Minister Boyko Borisov toraise the issue ofa new transport corridor betweenthe Persian Gulf and the Black Sea, which would connect Iran, Armenia, Georgia and Bulgaria, Tsaturyan points out, citing Focus News.
Regardless ofWashington's displeasure, China and its important Middle Eastern ally Iran are pushing ahead withtheir new infrastructural projects, aimed atunifying the Eurasian trade space.


And still, when it comes toCaucasus and Transcaucasia, it is Russia which can lend its helping hand toBeijing and Tehran.

By Sputnik News

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