{"id":16074,"date":"2025-11-16T05:06:09","date_gmt":"2025-11-16T05:06:09","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=16074"},"modified":"2025-11-16T05:06:09","modified_gmt":"2025-11-16T05:06:09","slug":"iran-china-trade-could-multiply-if-longstanding-barriers-are-eased-business-leader-says","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/16074\/","title":{"rendered":"Iran-China trade could multiply if longstanding barriers are eased, business leader says"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Bilateral trade between Iran and China could grow several-fold if structural obstacles are addressed, a senior Chinese business figure in Tehran said, highlighting what he described as vast untapped economic and geopolitical potential between the two countries.<\/p>\n

Tan Kai, President of the Iran Federation of Overseas Chinese Association and a long-time investor in the country, told Tasnim News Agency that weak mutual familiarity, financial restrictions and heavy bureaucracy remain the main factors holding back trade growth, despite decades of commercial ties.<\/p>\n

The association, formally launched in Tehran on January 2, 2024, works with backing from the Chinese Embassy and Iranian partner organizations to improve people-to-people exchanges, facilitate business contacts and help close information gaps that he said continue to limit cooperation.<\/p>\n

Bilateral trade reached 13.372 billion dollars in 2024 \u2014 including 8.928 billion dollars in Chinese exports to Iran and 4.444 billion dollars in imports from Iran \u2014 marking a decline from 14.85 billion dollars in 2021 and 16.28 billion dollars in 2022.<\/p>\n

China has remained Iran\u2019s largest trading partner, but the current volume accounts for only 0.218 percent of China\u2019s 6.160 trillion-dollar global trade in 2024. Tan said this gap underscores how far the partnership could expand if both sides address regulatory and financial bottlenecks.<\/p>\n

During a forum on economic cooperation opportunities between Iran and China, held in Tehran on November 4, Tan said that Chinese companies view Iran as an appealing destination for industrial investment.<\/p>\n

He noted that bilateral trade between Iran and China reached $13.4 billion last year, adding that the figure could rise substantially through expanded cooperation.<\/p>\n

He emphasized Iran\u2019s role as a key member of the Shanghai Cooperation Organization (SCO) and said Chinese firms are particularly interested in developing partnerships in industrial sectors.<\/p>\n

He added that China is home to over 58 million private factories, offering diverse and flexible models of foreign investment that could help support Iran\u2019s economic growth.<\/p>\n

Former Economy Minister Ehsan Khandouzi, also speaking at the meeting, underlined the importance of strengthening Iran\u2019s economic ties with eastern partners. He said that amid sanctions, strategic collaboration with China could play a vital role in mitigating economic pressures.<\/p>\n

Meanwhile, Hamed Vafaee, professor of Chinese studies at the University of Tehran, said relations between the two countries need deeper transformation and mutual understanding. He noted that Iran remains an indispensable partner in China\u2019s global development trajectory, underscoring the necessity of broadening bilateral cooperation.<\/p>\n

Last week, Iran inaugurated its Trade Development Center in Shanghai in a ceremony attended by Tehran Chamber of Commerce Chairman Mahmoud Najafi Arab and Secretary General Fereydoun Vardinejad, honoring Vardinejad for his role in strengthening Iran\u2013China ties.<\/p>\n

The event also brought together former Iranian ambassador to China Alaeddin Boroujerdi, Iran\u2019s Consul General in Shanghai Ali Mohammadi, and a group of Iranian and Chinese business leaders.<\/p>\n

Vardinejad, who previously served as ambassador to Beijing, called for deeper private-sector cooperation between the two countries amid \u201cintense global competition and Western efforts, particularly by the United States, to marginalize Asia\u2019s role in global value chains.\u201d<\/p>\n

He proposed the creation of a digital barter platform enabling trade in yuan and rial with the support of both central banks, and urged Iran and China to expand collaboration in regional and global coalitions to counter unilateral sanctions and promote multilateral trade based on law and mutual agreement.<\/p>\n

In a related meeting, the Tehran Chamber of Commerce delegation, led by Najafi Arab, met with the Deputy Director of the Hangzhou Council for the Promotion of International Trade and signed a memorandum of understanding to boost trade and technology exchanges, particularly in advanced and digital industries.<\/p>\n

Najafi Arab expressed hope that the talks would \u201copen new economic gateways\u201d between the two countries, citing Hangzhou\u2019s strength in electronics, innovation, and technology infrastructure.<\/p>\n

He said the agreement could lead to cooperation on smart industrial parks, digital economy initiatives, and educational partnerships between Tehran\u2019s Innovation and Digital Transformation Center and its counterparts in Hangzhou.<\/p>\n

The Tehran Chamber delegation, which includes two lawmakers, is in Shanghai to attend the China International Import Expo (CIIE) and promote private-sector collaboration in trade and technology.<\/p>\n

 <\/p>\n

In early October, Majid-Reza Hariri, the chairman of the Iran-China Joint Chamber of Commerce, commented on the extent to which the UN Security Council sanctions would affect Iran-China relations, and stated: “Given that none of the UN sanctions are trade-related and instead pertain to the nuclear industry and some sectors of the country’s missile industries, consequently, they should not impact our normal trade with China.”<\/p>\n

He added: “Although the U.S. sanctions have completely prohibited oil sales, we see that the Chinese are currently buying nearly over 90 percent of the country’s oil. Therefore, UN sanctions are not related to the commercial sphere and logically should not affect these types of relations either.”<\/p>\n

Hariri further added: “The UN sanctions will have psychological and secondary effects which must be examined.”<\/p>\n

On May 4, Iran-China Business Development Forum convened at the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA), with the participation of China\u2019s ambassador to Iran, the head of Iran\u2019s Trade Promotion Organization (TPO), the chair of the Iran-China Parliamentary Friendship Group, and senior officials from the Tehran Chamber.<\/p>\n

A large number of business leaders from both countries attended the event, where state, legislative, and private-sector strategies for deepening bilateral trade ties were outlined, the TCCIMA portal reported.<\/p>\n

Opening the event, TCCIMA Head Mahmoud Najafi Arab welcomed Chinese delegates who traveled to Iran for the Iran Expo. He expressed gratitude for the Chinese ambassador\u2019s continued efforts to expand economic ties between the two nations.<\/p>\n

Najafi Arab said Iran and China share thousands of years of cultural and commercial relations, which have entered a new phase in recent decades, marked by growing partnerships across multiple sectors. He said the two countries could serve as a model for sustainable cooperation based on mutual respect in today\u2019s increasingly interdependent world.<\/p>\n

He also highlighted recent visits of Iranian private sector delegations to various Chinese provinces and exhibitions, emphasizing the need to identify investment opportunities and facilitate financial exchanges. The Chamber, with over 140 years of history, is prepared to host expert meetings, present economic opportunities, support joint ventures, and activate professional networks between Iranian and Chinese businesses, he said.<\/p>\n

China\u2019s Ambassador to Iran Cong Peiwu, thanked Iranian participants and the Tehran Chamber for organizing the event. He expressed hope that the forum would help strengthen bilateral trade and economic cooperation.<\/p>\n

Referencing the recent meeting between the two presidents at the BRICS summit in Russia, Cong said China is fully committed to enhancing cooperation across all sectors in ways that benefit both peoples.<\/p>\n

Also speaking at the forum, Ruhollah Nejabat, chair of the Iran-China Parliamentary Friendship Group, said Iran\u2019s non-oil exports to China surpassed $14.8 billion last year, making China the largest destination for Iranian goods and accounting for about one-quarter of Iran\u2019s total non-oil exports. Imports from China reached approximately $19.3 billion, or 27 percent of Iran\u2019s total imports, making China Iran\u2019s second-largest import partner after the United Arab Emirates.<\/p>\n

These figures, he said, demonstrate the resilience and strategic importance of Iran-China trade, even amid global economic slowdown, with both countries supplying a significant portion of each other\u2019s needs.<\/p>\n

Nejabat noted that Iran\u2019s Seventh National Development Plan emphasizes industrial modernization and attracting foreign capital and technology. He said Iran aims to upgrade its industries\u2014from automotive and textiles to pharmaceuticals and medical equipment\u2014and that this will be achieved more quickly with partners like China, now a global industrial superpower.<\/p>\n

He added that technology transfer and joint investment are two strategic priorities for Iran. Chinese firms, he said, could take advantage of Iran\u2019s market size and skilled labor to establish production lines and access broader regional markets.<\/p>\n

Conversely, Iran could supply intermediary goods and industrial components needed by Chinese industries. Nejabat said Iran will offer special incentives for foreign industrial investment and provide a secure legal environment for Chinese companies. Infrastructure development\u2014including rail networks, highways, and ports\u2014is also a priority, and many of these projects will require Chinese expertise and participation.<\/p>\n

He also pointed to Iran\u2019s largely untapped mining sector, including vast reserves of iron, copper, aluminum, and rare earth elements, as an area ripe for development and export growth.<\/p>\n

Speaking at the forum, Mohammad Ali Dehghan Dehnavi, head of Iran\u2019s Trade Promotion Organization (TPO), outlined four key strategies for expanding trade with China. The first is technology transfer. He said Chinese companies have made major investments in research and development, much of which has not yet been fully commercialized. Iran, as a long-time partner, seeks deeper collaboration in these cutting-edge sectors.<\/p>\n

The second strategy, he said, is increasing trade in high value-added goods. Currently, much of the bilateral trade consists of raw or semi-processed materials. The average value of Iran\u2019s exports stands at less than $400 per ton. \u201cWe want to change that,\u201d he said, calling on Chinese importers to prioritize Iranian products with higher added value. He welcomed the Chinese ambassador\u2019s praise for the competitiveness of Iranian nanotechnology and biotechnology products.<\/p>\n

The third strategy is joint production through co-investment. Dehnavi said Iran offers a secure investment climate, with legal guarantees allowing foreign investors to repatriate both capital and profits. \u201cThere are many documented cases of investors successfully exiting after profitable ventures,\u201d he said.<\/p>\n

Iran offers highly competitive costs, a wide range of investment opportunities, and strong security for foreign capital, he added, expressing hope for increased joint ventures with Chinese firms.<\/p>\n

The fourth strategy is mutual market access. Dehnavi said Iran produces many goods that are well-suited for the Chinese market and that joint production could also help both countries expand into third-country markets. \u201cThis kind of cooperation can make our trade ties deeper and more sustainable,\u201d he said.<\/p>\n

Fereydoun Vardinejad, secretary general of the Tehran Chamber of Commerce, said China had stood by Iran during both stable and turbulent times, and that the two peoples share a strong emotional bond.<\/p>\n

However, he warned that a lack of information exchange and mutual understanding of economic capacities had led to a wide gap between political relations and economic realities. \u201cOur ties are excellent in potential but need significant work in practice,\u201d he said.<\/p>\n

Vardinejad called for a \u201cwin-win partnership\u201d and proposed several actions: holding specialized business meetings, promoting bilateral trade missions, introducing market opportunities, ensuring trade balance, and supporting private-sector cooperation in areas like creative industries, digital economy, nanotechnology, and biotechnology.<\/p>\n

\u201cThese steps,\u201d he said, \u201ccan build deeper and mutually beneficial ties between Iran and China.\u201d<\/p>\n

Meanwhile, Hossein Eyvazlou, a member of the executive board of Iran\u2019s National Development Fund (NDF), has announced plans for collaboration with China in the field of foreign investment in Iran.<\/p>\n

Speaking at a press conference on January 4, Eyvazlou highlighted the importance of attracting foreign capital to boost Iran’s economic projects, emphasizing the role of strategic partnerships with countries like China.<\/p>\n

Details on the scope and nature of the cooperation were not disclosed, but it is expected to focus on key sectors that align with Iran\u2019s long-term development goals.<\/p>\n

On December 20, 2024, a Shanghai Cooperation Organization (SCO) representative announced that the Chinese investors are prepared to fund the construction of combined-cycle power plants in Iran\u2019s energy-rich Khuzestan province to help address the country\u2019s energy imbalance and boost regional economic development.<\/p>\n

Zhao Bin He, the Executive Director of SCO\u2019s Iran Office, made the remarks during a meeting with Khuzestan\u2019s governor and local religious leaders. \u201cWe are here to pay our respects to provincial authorities and outline China\u2019s plans for strengthening economic and trade ties, with a particular focus on Khuzestan,\u201d Zhao said.<\/p>\n

He highlighted the historical and enduring relationship between Iran and China, describing it as built on mutual respect, economic cooperation, and cultural exchange.<\/p>\n

\u201cKhuzestan\u2019s strategic position in southwest Iran and its vast economic potential make it a key player in enhancing Iran-China relations,\u201d Zhao added. \u201cWith access to the Persian Gulf and proximity to strong regional economies, Khuzestan offers exceptional opportunities for port infrastructure development and maritime transport.\u201d<\/p>\n

Zhao reiterated China\u2019s readiness to actively participate in developing Khuzestan\u2019s infrastructure, expanding port capacity, and exploring joint projects in energy, industry, and agriculture.<\/p>\n

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