Political Economy Foundations in Comprehensive Strategic Cooperation Agreement between Iran and China: Extension of Effective National and Regional Territories

Document Type : Research Paper

Authors

1 Associate Professor, Department of Political Geography, Faculty of Geographical Sciences, Khwarazmi University, Tehran, Iran.

2 PhD in Political Geography, Tarbiat Modares University, Tehran, Iran

3 PhD student of Political Geography, Kharazmi University, Tehran, Iran

Abstract

Iran and China have converged into cooperation as a result of the realities in political and spatial structures of power in Iran and the geopolitical realities governing the international system. Given the strategic importance of the comprehensive 25-year cooperation plan between Iran and China, this study adopted a descriptive-analytical method to analyze the political economy foundations of this agreement and identify the factors affecting the convergence of these two countries into signing the agreement. According to the results, the Chinese state employs neo-mercantilism to resolve the bottlenecks of its export-based economy and secure the imported energy sources in order to extend its influence on strategic areas such as the Persian Gulf. The results also indicated the factors encouraging Iran to sign this agreement with China. These factors are as follows: the nature of Iran’s governing political system, confronting the dominance and hegemony of the US, leaving isolation, harnessing the pressure exerted by the West, improving the resilience of the political system to the potential pressure exerted by the West in the future, enhancing the ability to take risks, and benefiting from China’s veto power in the UN Security Council. This study also aimed to determine the critical or beneficial conditions that the Iran–China agreement could bring to Iran. Finally, this agreement can provide Iran with certain benefits in the current era.
Extended abstract
 

Introduction

     Iran and China have converged into cooperation as a result of the realities in political and spatial structures of power in Iran and the geopolitical realities governing the international system. Given the political and economic nature of the Iran–China agreement, this study aimed to analyze its foundations and formation contexts in order to perceive the bonds between economy and policy in this agreement. The main research question is as follows: What effects have geographical, political, and economic foundations had on the Iran–China convergence and the formation of a comprehensive strategic agreement between these two countries?

Theoretical Approach: Neo-Mercantilism

     Apparently, neo-mercantilism is an appropriate theoretical framework for explaining the research question due to the attempts made by the Chinese state to secure the imported energy and its policies for controlling the energy markets of countries with petroleum resources in addition to ensuring the long-term stable access for consumption in domestic industries. At the same time, the nature of the IRI’s political system should be taken into account with respect to the fact that the Iranian state plays the key role in its economy.

Methodology

In this study, a descriptive-analytical approach was employed to identify geographical, political, and economic factors affecting the formation of a comprehensive strategic cooperation agreement between Iran and China. Moreover, a desk method was used for data collection. To identify and determine the critical or beneficial conditions that the agreement can provide for Iran, different potential states were considered for key factors. In addition, a questionnaire was designed within a cross-sectional framework and then given to 18 experts in relevant scientific fields. Techniques of future studies were employed in two phases called environmental monitoring (i.e., collection of indices) and mutual effects (i.e., scenario development through ScenarioWizard).

Findings

     Iran was motivated to sign this agreement with China for the following reasons: foreign policy requirements in the 20-year outlook, nature of Iran’s governing political system, confronting with the dominance and hegemony of the US, leaving isolation, creating a strategic coalition to withstand the pressures exerted by the West in different areas, improving the resilience of the political system to potential pressures exerted by the West in the future, benefiting from China’s veto power in the UN Security Council, confronting Türkiye’s attempts at neutralizing Iran’s geopolitical situation, and extending effective national and regional territories. However, China sought the following goals in establishing strategic comprehensive relationships with Iran: needing energy supply sources, benefiting from Iran’s geographical position to reach Europe more easily and less expensively, accessing the global energy heartland, reaching business and arms markets, improving its position in both regionally and globally, deepening regional economic convergence, fulfilling security goals in the Indian Ocean, and improving its diplomatic leverage. These goals indicate China’s neo-mercantilism policies in signing the agreement with Iran.

Conclusion

     The IRI’s foreign policy system has prioritized cooperation with the East as a result of one-sided sanctions imposed by the West. For this purpose, Iran has gained interest in China as a new hegemony power among eastern countries in the international system, for its power matrix is constantly soaring. Hence, Iran hopes to reach some of its national goals on regional and international scales by extending cooperation with China, which is considered a center of international power and wealth. According to the results of analyzing different scenarios, this agreement can provide Iran with beneficial conditions in the current era. At the same time, the Chinese state has adopted neo-mercantilism to extent its influence on important areas of the world. In other words, China is improving its international position in order to penetrate into strategic regions worldwide with the purpose of resolving the bottlenecks in its export-based economy and securing the imported energy sources.

Keywords


Acar, A. Z.; Bentyn, Z.; Kocaogl (2015). Turkey as a Regional Logistic Hub in Promotion of Revivaling Ancient Silk Route between Europe and Asia. Journal of Management Marketing and Logistics, 2 (2), 94-94. https://doi.org/10.17261/pressacademia.2015211609.
Akman, S. (2019). Turkey’s Middle Corridor and Belt and Road Initiative: Coherent or Conflicting? Italian Institute for International Political Studies. Retrieved from https://www.ispionline.it/en/publication/turkeys-middle-corridor-and-belt-and-road-initiative-coherent-or-conflicting-24526.
Azizi, Reza and Haji Yousefi, Amir Mohammad (2015), China's Belt and Road initiative in West Asia from the perspective of international political economy theories, Quarterly Journal of International Political Economy Studies, third volume, second issue, pp. 331-355. .[In Persian]
Azzuni, Abdelrahman., & Breyer, Christian. (2018). Definitions and dimensions of energy security: a literature review. Article in Wiley Interdisciplinary Reviews: Energy and Environment.7(Part 1):e268 Retrieeved on (January 2018), available at: https://www.researchgate.net/publication/320017001_Definitions_and_dimensions_of_energy_security_a_literature_review
Colako.lu, S. (2019). China’s Belt and Road Initiative and Turkey’s Middle Corridor: A Question of Compatibility. Middle East Inistitue. Retrieved from https://www.mei.edu/publications/chinas-belt-and-road-initiative-and-turkeys-middle corridor-question-compatibility#_ftnref7.
Dehghani Firouzabadi, Seyed Jalal, & Farazi, Mehdi. (2012). Obstacles and opportunities to expand China's role in the Middle East. Journal of political science, 6th period (number 4), -. 107-143. [In Persian]
Erdbrink, Thomas. (2017). For China’s Global Ambitions, ‘Iran Is at the Center of Everything. New York Times, 25 July.
Gharayagh Zandi, Daoud. (2022). Challenges of Iran-China Comprehensive Cooperation Program: Emphasizing on the Security Enigma of Alliances. Politics Quarterly, 52(1), 152-133. .[In Persian]
Gueldry, M., and Liang, W. (2016). China’s Global Energy Diplomacy: Behavior Normalization Through Economic Interdependence or Resource Neo-mercantilism and Power Politics? Journal of Chinese Political Science/ Association of Chinese Political Studies
Gerriey, Paolo., & Padoan, Carlo. (1986). Neomercantilism and International Economic Stability.International Organization, 40, No.1.
Grygiel, Jakub, J. (2006). Great Powers and Geopolitical Change. Baltimore: Johns Hopkins University Press.
Holmes, James. (2016). China’s String of Pearls: Naval Rivalry or Entente in theIndian ocean? Pakistan Defence, March1. available at: http://defence.pk/threads/china%E2%80%99s-%E2%80%98string-of- pearls%E2%80%99-navalrivalry-or-entente-in-the-indian ocean.424704/.
Hassanzadeh, Mohammad (2008), China's role in Iran's economic security, Tehran: Publications of the Economy Tact Institute. [In Persian]
Kadilar, R.; Ergـney, E. (2017). One Belt One Road: Perks and challenges for Turkey. Hurriyetdailynews. Retrieved from http://www.hurriyetdailynews. com/opinion/riza-kadilar-erkin-erguney/one-belt-one-road-perks-and-challen-es-for-turkey-120536.
Kleven, Anthony. (2015). Is China Maritime Silk Road a Military Strategy TheDiplomat, December 8. available at: http://thediplomat.com/2015/12/ischinas-maritime-silk-road-a-military- strategy/
Khodaqolipour, Alireza (2017), The Belt and Road initiative of China and its impact on the national interests of the Islamic Republic of Iran, Foreign Policy Quarterly. 31. (1). 71-49.. [In Persian]
Lim Y. (2015). "How (dis) satis Fied is china? A power transition theory perspective", Jurnal of contem poranary china,24,92, pp . 280-297
Lu, Jin. (2016). Economic Cooperation between China and Iran from the Perspective of the Belt and Road. Alabo Shijie Yanjiu [Arab World Studies]
Mahmoudi Kia, Mohammad (2019), China's Middle Eastern foreign policy in the light of the new world order, Foreign Policy Quarterly, Year 33, Number 3 Autumn. [In Persian]
Maleki, S.; Mohammad, Z. (2019). Iran Rescue Corridor or Doom Corridor. Sputniknews. Retrieved from https://ir.sputniknews.com/opinion/ 201911055435302. [In Persian]
Mirtorabi, Said and Turki, Hadi.  )2019 (. Initiative to revive China's Silk Road in the effort to ensure energy security and export development. International political economy studies.)2(. [In Persian]
Mirtorabi, Saeed.)2012(. Islamic awakening and the political economy of oil in the Middle East. Tehran: Imam Sadegh University Press. [In Persian]
Oatley, Thomas. (2010). International Political Economy: Interests and Institutions in The Global Economy. Newyork: Longman, 4Th Edition, Official Website Of The French Presidency Of The G20 And G8: http://www.G20-G8.com/G8-G20/English/Priorities-For-France/The-Priorities-Of-The-Frenchpresidency/Commodity-Volatility353Html. Accessed on: 2011/8/19.
Passi, Rittika. (2019). Unpacking Economic Motivations and Noneconomic Consequences of Connectivity
Pikford, Andrew. (2017). China's grand strategy and EnergyMarkets, Infrastucture and Global Ambitions. Centre’s Third Energy Security Roundtable: Australia.
Rezaei, Mohsen (2012), Regional Iran, Tehran: Geographical Organization of the Armed Forces. [In Persian]
Rodrik, Dani. (2010). Mercantilism Reconsidered. Project Syndicate. http://www.project- syndicate.org/Commentary/Mercantilism/ Reconsidered.
Sadeghi, Seyed Shamsuddin and Lotfi, Kamran (2015), Analysis of the nature of cooperation in the relations between the Islamic Republic of Iran and China, Foreign Relations Quarterly, 7th year, 2nd issue, summer 37-70. .[In Persian]
Salami Zavareh, M., & Fallahi Barzoki, M. (2018). China’s Energy Security: IR Iran and Saudi Arabia’s Role in China’s Energy Diplomacy. Iranian Economic Review, 22(3), 707-717.
Shariatinia, Mohsen (2007), China's Middle East policy, Foreign Policy Quarterly, year 21, number 3.[In Persian]
Shafiei, Nozar. (2022). Analysis of the 25-year agreement between Iran and China in the light of China's foreign policy developments. International Political Economy Studies, 5(1), 175-200. .[In Persian]
Umbach, Frank. (2019). China’s belt and road initiattve and its energy- security dimensions. The rsis working paper series.
Vander, Putten., Frans, Paul., &Minke, Meijnders. (2015). China, Europe and the Maritime Silk Road. Clingendael ReportNetherlands Institute of International Relations, available at http://thediplomat.com.
Xing, Li. (2019). China’s Pursuit of the One Belt One Road” Initiative: A New World Order with Chinese.
Yu, Hong (2017). motivation behind Chinas one belt, one road Initiatives and establishment of the Asian inFrastructure Investment Bank.  journal off Contemporary China, 26: 353-368.