GRM 2010 GRM 2011

Abstract Details

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China and Iran: special and important economic partners
Paper Proposal Text :
Iran is an important oil-producing country in the Gulf and has special economic model different from the GCC countries, and also her economy is greatly effected by wars, sanction and politics in the past thirty years. China has good relations economically with Iran, even before she has developed good economic relations with the GCC countries. However, such development has been checked by sanction, while closer relations have been formed between China and the GCC countries at the same time. Anyway, in spite of such difficulties, China have formed step by step economic relations with Iran, which experienced less turbulence than Iraq, another important oil exporter in the Gulf. In 1998, the bilateral trade between China and Iran was 1.215 billion US dollars, and it was 29.382 billion US dollars in 2010, an increase of 23 times during 12 years. Compared with other 7 Arab countries including Iraq in the Gulf, the bilateral trade between China and Iran in 2010 was next to Saudi Arabia only.
As for the goods traded, Iran mainly exports oil, gas and agricultural products to China, while the latter exports manufactured goods of different kinds to Iran. This shows both the results of the successful industrialization of China and the problems of the industrialization of Iran, for in the early years manufactured goods could be found among Iranian export commodities to China. Of the bilateral trade, oil plays the most important role, and now Iran exports 27 million tons of oil every year to China, and is the third biggest oil exporter to China. Chinese companies also invest in such trades as energy, transportation, telecommunication, machinery, building materials, mining, coal, chemical industry and nonferrous metal. For example, CNPC, Sinopec Group and CNOOC all have cooperation with Iran in oil and gas.
However, China’s economic relations have been greatly influenced by international sanction on Iran. On the one hand, Chinese companies benefited from the limitation on the economic activities of European and Japanese companies, and on the other hand, Chinese companies themselves have also suffered from the negative effects of the sanction. The result is the slowdown of Chinese companies’ activities in Iran and the contradiction between two countries.
Iran’s significance was also shown in her strategic position, i.e., it is the land bridge between the Arab countries in West Asia and Turkey on one hand and Central Asia, South Asia and East Asia on the other hand. So there have plans to connect Iran and her neighbors through high speed railway, and this will have great influence on the transportation not only in Asia, but also in Europe, and of course on China’s economic development as well.