This essay talks about the possible shift in economic relationships between Iran and China, which are big trading partners, after the imposition of international sanctions on Iran. The sanctions were imposed on Iran in connections with possible development of nuclear weapons by the country
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India, like many other countries, has invested billions of dollars in Iranian oil fields towards business oil trading purposes as well as research and development of oil refineries in Iran. The Economics Times reported that the Indian government-owned ONGC along with the private sector Ashok Leyland Project Services Ltd of the Hinduja group won $10 billion bid for investing in Iranian oil company, Naftiran Intertrade Co and Petropars Ltd in 2008. However, India eventually lost this deal to China after the China National Petroleum Corp (CNPC) offered to contribute towards NICO's share of the $ 2.5 billion cost for developing the field that holds an estimated 42 billion barrels of oil reserves, one of the world's largest finds in the last 30 years according to The Economics Times news report. Iran’s conduit towards India’s proposition and favoring China is a result of international business relations between the countries, which are further shaped by their cultures, business negotiations and political positions. It is important to note that both India and China have high demand for oil in both domestic and commercial sectors (Oil Prices, 2). Moreover, China is a larger and greater potential for business compared to India. Reports from investigation agencies revealed that inward FDI into China is at least two to three times higher than what is reported; and FDI is majorly from the United States, the United Kingdom, France and other European nations. Yet, China’s high corruption and regulations still discourage FDI by significant amount (Wei, 200). Sources also report that corruption has been tackled to a great extent in China compared to India, where corruption still continues to haunt its economic progress (Ragunathan, para 1). Reduction in Chinese corruption...
This essay offers a comprehensive analysis of the impact, that international sanctions imposition on Iran would exert on the nature of the relationships between China and Iran. While most of the other nations that traded with Iran before the imposition of the sanctions, have stopped or minimized their trade, China still seemed to be inclined towards Iranian oil reserves, owing to its huge investments in Iran. In fact, Iran dismissed its deal with India’s oil company and confirmed the same with China’s oil company few years before the sanctions were announced. China did not heed to the warnings of sanctions from the US and succeeded in this and many other business deals in order to secure its oil reserves.
With China already investing in oil business at international level with Iranian companies, the proposed sanctions on Iran will result in serious consequences for China. The Iran-China relationship has only intensified during last decade, despite warnings from the US to China to stay away from Iran because of Iran’s advent into nuclear program and refusal to support peace projects in neighboring countries. The US had delayed sanctions on Iran for many years because of China’s involvement with Iran, which was an obstacle to putting international pressure on Iran.
China should continue to abide by its principles and norms of not seeking control, upholding principles of sovereignty, engaging in peaceful development and in being a responsible stakeholder in the international system.
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It is now 30 years since the United State of America adopted the policy of dual containment of Iran and Iraq. When did the policy of containment came into being? What is its destiny? Much has been said about policy of dual containment, especially in Iraq.
US Policy Towards Iran
The issue of U.S sanctions imposed on Iran has existed for the last 30 years. Since 1979, the two countries have had minimal economic cooperation. The U.S government has been trying to influence the Iranian economy by altering its interaction with the international community.
Economic sanction is a penalty charged by one country on another as a form of trade regulative measure restricting flow of financial transactions between the national participants of the two countries. When the economic stability and prosperity depends largely on the global positioning of an economy, international economic sanctions are impactful.
Alienated to the Far East, there was always the possibility that the sleeping giant would awake and explode upon the world. However, the awakening was slow, but powerful all the same. Secondly, the fact that China would emerge as a strategic partner with the EU is all the more interesting given their roles in the Cold War Era.
These countries still face the issues like falling per capita income, low GDP, high unemployment and poverty.
This paper illuminates the state of economic development in both the countries and presents a comparative analysis of the causes of economic backwardness.
The governments of the countries that belong to GCC see Iran as a threat to regional security and political stability after Iran government denied to disclose the nuclear activities, insisting that these activities are not related to the production of nuclear weapons. This situation is controversial and many debates arise around it.
The Iran nuclear deal framework was an agreement reached between the five permanent members of the United Nations Security Council and Germany (P5+1), the European Union and Iran. Negotiations that resulted in the development of the nuclear deal was carried out between foreign ministers of the countries in series of meetings.
According to The United States (2008), the human rights situation in Iran is direr than before, and the country has the highest per capita execution rate in the world. At the same time, the current crisis in the region, including the apparently growing influence of Iran in Iraq and Syria, and the growing threat of Islamic extremism is alarming.
4 Pages(1000 words)Research Paper
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