US Economic Sanctions and Iran-China Geoeconomic Interactions

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Ghasemi Abolfazl; Heidary Mahdieh

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Journal Paper

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Journal: FOREIGN RELATIONS Year:2024 | Volume:16 | Issue:2 Page(s): 117-142

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Information Journal Paper

Title

US Economic Sanctions and Iran-China Geoeconomic Interactions

Author(s)

Ghasemi Abolfazl | Heidary Mahdieh | Issue Writer Certificate

Keywords

Iran

China

Sanctions Diplomacy

Balance of Power

Neo-realism

Abstract

Introduction: China and Iran share a close yet complex relationship. Following the U.S. withdrawal from JCPOA and the expansion of U.S. sanctions against Iran, China has become Iran's primary trade partner. Beijing has allocated significant investments in sectors such as mines, oil and gas, and the development of communication infrastructure, including roads and subways in Iran. However, what has become apparent in the increasing interactions between Iran and China in recent years is the impact of U.S. economic sanctions on their relationship, particularly after Trump took office.Research Question: what effect US sanctions have had on bilateral trade and financial cooperation between Iran and China?Research Hypothesis: The answer is that US oil and financial sanctions on Iran have led to an increase in Iran's foreign trade, especially in the field of energy with China, and vice versa. US trade sanctions on China have led to a decrease in investment and foreign trade. It has been done with Iran.Methodology: The method of collecting information and data in this research library -documentary and the research method is based on descriptive-analytical.Results: The findings of the research indicate that the Iran and China, with a realist approach, have sought to create a power balance, albeit an unequal one, by increasing their relative economic achievements against the U.S.through the development of their bilateral economic interactions. Iran has utilized China as a trump card in the international system to circumvent sanctions and enhance its economic achievements in the international trade system. China's presence in the U.N Security Council and its support for Iran's membership in the Shanghai Cooperation Organization and BRICS have been the most significant aspects of Iran's efforts to circumvent U.S. sanctions. On the other hand, China will also leverage Iran as a trump card in its economic interactions, particularly in its strategy in the Middle East. The Chinese government has adopted a cautious policy in response to U.S. sanctions against Iran, in such a way that, on one hand, it has followed U.S. sanctions against Iran and reduced its imported oil from Iran, while on the other hand, it has made significant investments in various industrial sectors of Iran.Conclusion: The explanation of the impact of U.S. sanctions on Iran-China bilateral interactions, utilizing both realism and Sanctions Diplomacy theories, shows that the anarchic structure of the international system is a determining factor in the behavior of states and their economic objectives, as well as in the global economy. The pressure from U.S. international sanctions against Iran and China, along with the pursuit of relative economic gains from trade between them, has been the main factor in the rapprochement of these two countries. Iran's behavior towards China, as a rising power and emerging phenomenon in the international system, indicates that this country is well capable of understanding the systemic pressures of the system, particularly those imposed by the system's hegemon. Consequently, Iran has sought to circumvent the pressures of U.S. sanctions by developing its interactions with China. The Chinese government, recognizing that the Islamic Republic of Iran is in need of its support, has sought to maintain its trade and financial relations with Iran to achieve other long-term political and economic goals in the region, particularly those geopolitical objectives linked to the Belt and Road Initiative.

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