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China Slaps U.S. by Signing $400 Billion in Deals with Iran Despite Sanctions

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China Slaps U.S. by Signing $400 Billion in Deals with Iran Despite Sanctions
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Iran and China have signed contracts amounted to $400 billion in a new confrontation between Beijing and the US, which has imposed economic sanctions on Tehran.  The deal will meet Iran's need for funding and make US Sanctions all but irrelevant.

Iran and China signed contracts worth 400 billion dollars, Fars news agency quoted a delegates’

Member of Tehran’s Chamber of Commerce and Industry, Ferial Mostofi, said the contracts stipulate that the projects should be awarded to Chinese companies without tenders being issued.

This comes as a result of the reluctance of international companies to bid for Iranian projects, in compliance with US sanctions imposed on Iran in August 2018.

Mostofi noted that his country “will offer discounts of between 20 to 30 per cent when selling oil to China.”

The signing of the contracts is a new confrontation between Beijing and Washington within the current trade war between the two countries, as the US forbids trade with Iran.

In May 2018 the United States unilaterally withdrew from the Iran nuclear deal concluded in July 2015 and re-imposed “unprecedented” economic sanctions on Tehran which were put into effect in August 2018.

Technically, since China is now violating US Sanctions on Iran, US regulations would allow China to be fully sanctioned as well. 

 

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  • This commment is unpublished.
    Gifford Rodine · 5 months ago
    “will offer discounts of between 20 to 30 per cent when selling oil to China.” Sounds like the iranians are "buying" the trade deal. china may be buying oil for 35 to 55 bucks a 40 gallon barrel?
  • This commment is unpublished.
    Kevin Burger · 5 months ago
    Interesting. This gives China the fuel it needs for the war machine and Iran funding for its. If turkey leaves nato and joins Russia then that closes the back door to Russia and Ukraine. It also allows free flow of materials and other assets between Europe and Iran if turkey can gain control over northern Syria. Interesting indeed
    • This commment is unpublished.
      Joshua Riddle · 5 months ago
      Problem for China is while the might have bought access to Iranian Oil 95% of it comes out of the Oil Export Facility at Kharg Island. Kharg Island will most likely be the first target the Saudis or the US hits in any military action. Under the old Global Order oil had to flow out of the Middle East, but now that the old order is collapsing and America is energy independent, its in America's interest to see oil disruptions from that region of the world.
      • This commment is unpublished.
        Kevin Burger · 5 months ago
        I don’t think we are ready for a full on engagement. Till then they will use Iranian oil to make ready for their own. If it don’t go that way then the sparks are gunna fly real soon
  • This commment is unpublished.
    Ronald Cordova · 5 months ago
    This is part of the Silk Road Economic Belt and infrastructure development and investment initiatives for the 21st century.

    European companies could have had lucrative contracts with Iran if they had the guts to tell the USA to pound sand on the sanctions. Now they have all lost out.
    • This commment is unpublished.
      Matthew Worner · 5 months ago
      They know they can tell the US to pound sand, but they have a healthy respect for who's ass it would get pounded in. Like their own, maybe...
    • This commment is unpublished.
      Joshua Riddle · 5 months ago
      Problem for Europe is everything uses the Swift System. 95% of all European international trade transactions are done in USD. Its a 3 step process, Example) Euro get converted to USD, USD converted Wan. As long as the USD is the world reserve currency, that is going to remain an issue. And the USD isn't going to be replaced anytime in the next century, simply because "While there are many who would like the replace the USD, no one has a strong enough currency to do so, or the guns to back it up.
      • This commment is unpublished.
        Ronald Cordova · 5 months ago
        I do believe the US Dollar will not be the reserve currency by 2030-2035. The world's financial center will move to China by that time.
        • This commment is unpublished.
          Mike Fisch · 5 months ago
          Not to start a date guessing competition, but I would put it 2020-2025.
  • This commment is unpublished.
    Mike Fisch · 5 months ago
    Axis and Allies joining ranks for WW III.
  • This commment is unpublished.
    MakeReady · 5 months ago
    Kiss yer chinko junk goodbye ......... dang , no more fentynol .... no more cheapass knives, no more toxic toys for the kids, no more rotten food, no more agent orange in the food products....................
    • This commment is unpublished.
      Mike Fisch · 5 months ago
      My personal rule is never put anything made in China in your mouth.
  • This commment is unpublished.
    Copperhead · 5 months ago
    And that's a big middle finger...