Perfect Timing: Iran-China Economic Cooperation on the Rise

"Now, the right timing, geographical advantage, and harmonious relations are all in place; what remains is communication and exchange. For the business communities of both countries, we are facing a vast blue ocean of cooperation, with a multitude of untapped business opportunities," said Majidreza Hariri, President of the Iran-China Chamber of Commerce, in an exclusive interview with a reporter from 21st Century Economic Report.

By "right timing," Hariri pointed out that Iran and China have not only established a comprehensive strategic partnership early on, but also, with Iran's joining of the Shanghai Cooperation Organization (especially as a member of the SCO Business Council) and the BRICS cooperation mechanism, the two countries have a broader platform for economic and trade cooperation.

Regarding "geographical advantage," Hariri stated that Iran has not only been an important node on the ancient Silk Road throughout history, maintaining trade relations with China for centuries, but is also currently at the intersection of the "Silk Road Economic Belt" and the "21st Century Maritime Silk Road," willing to cooperate with China in building infrastructure such as railways, ports, and roads.

As for "harmonious relations," Hariri believes that the joint construction of the "Belt and Road" initiative allows everyone the opportunity to pool their capabilities and available resources to build a future world based on peace and justice. Iran is eager to play a significant role in this initiative, aiming to create a world route of civilization, culture, trade, and prosperity.

Advertisement

On September 20th, the 2024 "Belt and Road" Trade and Investment Forum was held in Beijing. Hariri highly praised the joint construction of the "Belt and Road" initiative in his opening speech, stating that positive developments on a global scale have gradually become apparent based on this initiative. "Since 2021, with China's successive proposals of the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative, as well as the rise of Chinese-style modernization to the center of the world stage, the puzzle pieces of this initiative have gradually come together, painting a clearer vision of the future world for us."

He particularly emphasized that the concept of modernization proposed by China originates from the universal desires and needs of people around the world, adheres to the principle of people-centeredness and independence, and shares this concept with other countries. Therefore, it is not an exclusive product that only a few countries can enjoy. Countries in the process of modernization should persist in sharing development opportunities, safeguarding common interests, and creating the future together based on their own circumstances and characteristics.

He pointed out that after the end of the Cold War, Western-style development dominated the globe, causing many developing countries to lose control over their own development and progress in the process of being forced to accept Western values. Clearly, the existing global order and unipolar world have deprived many countries of the possibility to fairly engage in economic and social development, with many countries even lacking the most basic living conditions.

Hariri believes that the emergence of Chinese-style modernization contrasts with the conflict-oriented Western-style modernization. It proposes China's peaceful and open path to development, which is also stable and pragmatic, bringing new hope to human modernization.

He emphasized that the joint construction of the "Belt and Road" initiative, as an international public good and cooperation platform, provides tangible benefits to participants and promotes cultural exchanges. Iran has a strong desire to jointly promote any positive changes in the current world and is willing to cooperate with all countries on the basis of mutual respect and shared interests.Under the framework of jointly building the "Belt and Road" initiative, China and Iran have steadily carried out practical cooperation in various fields. In 2023, the bilateral trade volume between China and Iran was $14.66 billion, with China's export volume at $10.08 billion and import volume at $4.58 billion. In the first half of 2024, the bilateral trade volume between China and Iran was $6.91 billion, with China's export volume at $4.75 billion and import volume at $2.16 billion. In March 2021, the two countries signed a comprehensive cooperation plan. In January 2022, both sides announced the initiation of the implementation of the comprehensive cooperation plan.

Majidreza Hariri, President of the Iran-China Chamber of Commerce and Industry (photo provided by the China International Chamber of Commerce)

"21st Century": How do you evaluate the progress made by the two countries in jointly building the "Belt and Road" initiative? Looking ahead, how can the two countries further expand economic practical cooperation?

Hariri: This vision allows any country to play its role in the initiative according to its capabilities, advantages, and resources, and strive to build a future world based on peace and justice. Based on its unique geographical location and solid political relations with China, Iran is definitely going to strive to play an important role in the joint construction of the "Belt and Road" initiative and fulfill its responsibilities and missions. Whether it is railways, ports, or roads, Iran and China can cooperate deeply in many aspects and continuously expand the fields of cooperation.

Iran and China have not only established a comprehensive strategic partnership early on, but also have a broader platform for economic and trade cooperation as Iran joins the Shanghai Cooperation Organization (especially becoming a member of the Shanghai Cooperation Organization Business Council) and the BRICS cooperation mechanism. Now, the right timing, favorable location, and harmonious people are all in place, and the rest is communication and exchange. For the business communities of the two countries, we are facing a vast blue ocean of cooperation, where there are a large number of business opportunities to be developed. With the capabilities and strengths of our country and people, we hope to play an active role as a member of this initiative.

Over the past 40 years, our country has borne the heavy blow of the existing order. Due to the unilateral sanctions of the United States, we have been deprived of the right to free trade and the opportunity to use global financial relations fairly, losing many opportunities for economic growth. However, at the same time, this also made us realize who the real friends are. We have a profound friendship with China that has lasted for thousands of years, and the solid economic and trade cooperation between our two countries is unbreakable.

"21st Century": China and Iran signed a comprehensive cooperation plan for 25 years in 2021. How is the implementation of this plan going now? What opportunities has it provided for the business communities of the two countries?

Hariri: The signing of this agreement coincided with the COVID-19 pandemic. In the past few years, many bilateral cooperation projects between Iran and China have been affected. However, it is pleasing that in the past year and a half, we have been working very hard to fulfill our respective duties and obligations as agreed at the time. I believe that we will definitely have more opportunities in the future.