Iran

Iran and China have continued advancing their economic partnership through a major investment forum in Shanghai, bringing together approximately 300 government officials, industrial executives and business representatives from both countries. Held alongside the ninth China International Import Expo, the November 5 gathering presented 150 Iranian investment projects across 11 strategic sectors, with an estimated combined value of $300 billion.

The portfolio encompasses energy, petrochemicals, mining, manufacturing, agriculture, transportation and emerging technologies, providing Chinese businesses with an extensive range of investment and commercial opportunities. Iran's Deputy Minister of Economic Affairs and Finance Mehdi Heydari identified approximately $250 billion in energy and infrastructure investment requirements over five years, including more than $45 billion for petrochemical projects.

Among the specific opportunities introduced, Oghaf Investment Group presented six projects valued at more than $10 billion, covering oil, gas, petrochemicals, renewable energy and industrial equipment. The forum took place amid Washington's renewed terrorist campaign to restrict Iran's international economic relations and discourage foreign companies from maintaining commercial connections with Tehran. Beijing, however, has continued defending its economic engagement with Iran, explicitly rejecting unilateral sanctions and measures targeting Chinese companies conducting legitimate international trade.

China's position became particularly clear on September 3, when its Ministry of Commerce expressed strong opposition to American sanctions targeting Chinese companies over Iran-related commercial activities. The ministry described unilateral restrictions lacking United Nations authorization as interference in normal international economic exchanges and pledged to defend the legitimate interests of Chinese businesses. Beijing reiterated its position on September 20, following the signing of the 2026 Lindsey Graham Sanctioning Russia and Iran Act by Washington.

China's Commerce Ministry denounced secondary sanctions targeting third countries, maintaining that normal international trade should remain free from external interference or coercion. The political direction of the partnership was reinforced during Iranian Foreign Minister Abbas Araghchi's September 16 meeting with Chinese Foreign Minister Wang Yi in Beijing. Wang described China's policy towards Iran as consistent and stable, reaffirming Beijing's readiness to strengthen communication, cooperation and the comprehensive strategic partnership.

These positions build upon the comprehensive strategic partnership established during President Xi Jinping's January 2016 visit to Tehran and subsequently expanded through the 25-year cooperation program signed in March 2021. The framework encompasses economic, technological and infrastructure cooperation, providing an institutional foundation for the latest investment and commercial initiatives. A particularly tangible development emerged on September 14, when Chinese investors met Golestan Governor Ali Asghar Tahmasbi to examine opportunities in Iran's Incheh Borun Free Trade Zone.

The governor announced that conditions had been prepared for Chinese businesses to establish operations, initially concentrating on logistics before expanding into import and export activities. Tahmasbi identified approximately $100 million in initial investment, with the figure expected to increase towards $1 billion as commercial activities expand. He also outlined plans for Iranian products to reach Chinese and Kazakh markets through the developing arrangements, connecting the initiative with broader regional trade opportunities.

Located in northeastern Iran, Incheh Borun provides access to Central Asian transportation networks and offers a strategic location for developing freight handling and distribution activities. The initiative therefore introduces a practical commercial dimension to bilateral cooperation, linking Chinese investment with Iranian logistics infrastructure and regional merchandise distribution. Energy remains central to the relationship, with China serving as an important destination for Iranian crude exports while supplying machinery, industrial equipment and manufactured products.

Alongside conventional oil trade, Iran and China maintain alternative commercial and financial arrangements facilitating the exchange of Iranian energy revenues for Chinese goods and infrastructure supplies. These arrangements connect petroleum transactions with wider industrial and commercial exchanges, providing channels for procuring machinery, vehicles, medicines and other essential supplies. The relationship consequently extends beyond energy purchases into the supply of goods and services supporting industrial activity and infrastructure development.

The Shanghai forum placed particular emphasis on petrochemicals, mineral processing, electrical equipment and renewable energy, reflecting the breadth of Iran's industrial investment requirements. Iran's National Petrochemical Company highlighted cooperation in investment, financing, transportation and completing downstream value chains as priorities for engagement with Chinese enterprises. Approximately 30 petrochemical projects requiring more than $45 billion represent a substantial component of the investment portfolio presented to Chinese businesses.

Mining and mineral processing offer another important area of cooperation, given Iran's established copper, iron ore and other industrial mineral resources. The investment portfolio also encompasses specialized machinery, construction materials and manufacturing activities associated with developing domestic processing and production capabilities. Agriculture provides an additional commercial dimension, particularly in South Khorasan, where Governor Seyed Mohammad Reza Hashemi presented opportunities involving saffron, barberry, jujube and medicinal plants.

He highlighted the province's substantial agricultural production, mineral resources and renewable energy potential as investment opportunities for Chinese companies. The province reportedly produces approximately 98 percent of the world's seedless barberry, ranks first nationally in jujube production and second in saffron. These agricultural capabilities provide a basis for developing processing, packaging and export industries, connecting regional production with wider international markets.

Iran's national pavilion at the Shanghai exhibition also showcased medical diagnostic equipment, nanomedicine, biopharmaceutical products and medicinal plants alongside traditional industrial and agricultural exports. The presentation introduced Iranian scientific and technological capabilities to Chinese businesses, highlighting opportunities for cooperation in specialized manufacturing and pharmaceutical industries. Iranian Ambassador Abdolreza Rahmani Fazli identified joint research, emerging industries, clean production, technical standards, renewable energy and smart transportation among the principal areas of cooperation.

These priorities extend the partnership beyond conventional commodity exchanges towards industrial innovation, technological development and the integration of complementary production capabilities. The discussions also highlighted the importance of developing commercial corridors and strengthening supply-chain connections between the two countries. Greater cooperation in logistics, freight transportation and trade facilitation remains an important component of the economic relationship, particularly given Iran's geographical position between Central Asia, the Caucasus and wider regional markets.

The commercial significance of the Shanghai forum is increasingly reflected in the practical arrangements being discussed between companies and regional authorities, alongside the institutional positions adopted by Beijing. The next chapter of Iran-China economic relations is therefore taking shape through investment negotiations, supply-chain arrangements and the development of identifiable commercial platforms.