China and Iran - an unequal friendship

Over the past decade, the China-Iran relationship has expanded into what today is termed a comprehensive strategic partnership. China is Iran's largest trade partner and leading oil customer. For Beijing, Iran has a strategic location for securing trade routes, while Tehran is also an important partner in the region, outside the circle of American allies. Both countries share the view that a US-led world order is undesirable. China's infrastructure construction projects are of great importance for Iran, and Iran has the potential to become a strategic node for Beijing's Belt and Road Initiative. Thus, there are complementary and mutual benefits in the political, economic and military realms. However, the US decision to leave the nuclear deal and re-impose secondary sanctions has complicated Sino-Iranian ties. Iran's economy is in dire straits, and its dependency on China has become greater. Consequently, China is increasingly seen as a lifeline for the Iranian economy. On the other hand, China, given its deep entrenchment in the global economy, must for its part balance its relationship with Iran against its ties with the US. Thus, Beijing is temporarily downgrading its relationship with Iran to avoid further affecting its already souring relations with the US, without also alienating Iran.