China investment of $400 billion in Iran

Why China invest a big amount of money in Iran 

  • With the help of $400 billion is China makes road, railways, highway, to find natural resources in Iran.
  • These $400 billion transaction in Renminbi(Chinese currency).

  • Due to line of credit loan the interest of $400 billion is very low.  
  • This loan can be see on the ground in next 25 years.
  • Definitely it gives negative impact in India and Iran relation.

  • China Iran $400 billion deal possible due to Donald Trump cancel Iran nuclear deal.
  • 5000 Chinese troops deployed in Iran.


How to China give $400 billion to Iran

China gives line of credit loan of $400 billion to Iran, it means that Iran have an option to buy Equipment or construction protect with China.

for example if Iran need a road then he call any Chinese company and give the project of construction to those Chinese company and the cost of construction will be deducted from $400 billion line of credit loan.

China says that $280 billion spend on developing Iran's oil, Gas and Petrochemical sectors, And another $120 spend on up-gradation of Iran's transport and manufacturing infrastructure.


Why China invest in Iran

This $400 billion is 8 times of Chinese investment in Pakistan, so the question is why China invest $400 billion in a country who is already added in  FATF list, a country who face war any time.

According to China, Iran is a comprehensive strategic partner and Iran is the country who full fill China energy requirement in long term.
In present condition of Iran they don't have money for Abstract natural resources, Road network, Containers.

This problem of Iran gives an opportunity to China easily enter in Iran.


Profit of China with this loan

First thing is Chinese workers get employment and if overall we can see, it is a loan from China to Iran, Iran must pay this loan with some interest.

Main aim of China for this initiative to combine with there Belt and Road Initiative by connecting maximum highways and road of Iran to Turkmenistan then Uzbekistan then Kyrgyzstan and then China.

From this project China creates a energy rout and this rout release China dependency from Strait of Malacca or Strait of Hirmuz.


It is Trade or Colonialism?

Obviously it is colonialism if any country under a $400 billion loan then they have no option, one more thing of this project is China deploy there 5000 soldiers in Iran to give protection for this project because according to China, Iranian military is not capable to protect this project.


Impact on India during this project

India have no idea how many Chinese troops are present in Pakistan and now Iran also have thousands of Chinese troops, this deployment of troops make Chinese crescent of troops in north east or west of India.

It is possible if this project is take time of 25 year then number of troops will increase approximate 25000 to 30000. Importance of India also low in front of Iran.


Recently Iranian envoy Ali Chengeni say

  1. India had fought hard for his independence and should not have given in to unilateral sanctions from US.
  2. It is now official that India has stopped importing oil from Iran because of what it says is its own national interest.
  3. India'ss development work had been very slow despite the USA sanctions waiver for Chabahar so Iranian government had decide to finish the railroad project by 2021 using its own resources.
  4. If India wants energy security, it should prefer Iran as a dependable supplier.
  5. We love the Indian people but we cannot force somebody to love us. The government of India has to decide according to his national interest, just as the Chinese have.

according to Iranian envoy it is clear that India takes US side and stop buying petroleum product with Iran, so its negative impact see on Chabahar port.               


Why Iran except this colonialism

It is very difficult decision for Iran to allow a loan of $400 billion and 5000 troops, In 1979 Iranian revolution, Iran make a policy,in this policy Iran decide he does not go with east-west or he does not except any colonial penetration and influence of foreigners. But this policy change due to USA cancel nuclear deal ,Iran faces many sanctions and all other major countries give warnings if they by oil with Iran then those major country also face sanction.

Effect of this pressure country like India stop buying petroleum from Iran so there is no other option for Iran to except this loan and troops from China.

With this project Iran get a permanent petroleum product buyer like China and Iran also provide those petroleum product to China as 13% of discount.   


solution for this tension is India buy again oil from Iran, if India does not buy petroleum from Iran then there is a chance Chabahar port can not give any type of profit to India and an important country like Iran become a Chinese colony and lose there independence.

 


   

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