In a bid to help Iran cope with the new set of sanctions imposed on them by the U.S, China has opened a $10 billion line of credit for Iran.
This assistance from Beijing to Tehran is meant for financing energy, transportation, water and other key Iranian infrastructural projects.
Despite the 2015 Joint Comprehensive Plan of Action (JCPOA) between Iran and other countries like U.S, Russia, China, UK, France, Germany and the EU over Iran's nuclear weapon program which Tehran has sticked to to a great extent, Washington diced out new set of unnecessary sanctions against Tehran which may be quite hurting to the middle eastern country's economy.
The new set of sanctions include limits on global financial transfers, asset freeze and sanctions on some government officials.
The Iranian Central Bank President, Valiollah Seif announced the offer of CITIC, a chinese state owned investment company, stressing that the $10 billion credit line will be used as a medium to fund infrastructural projects in Iran.
The new $10 billion credit line alongside a previous $15 billion of Chinese investment into other unnamed projects shows a strong commitment of the part of China to Iran despite all the western oriented sanctions on Iran.
According to Pakistan's geo.tv media outlet.
China is seen to be opening trade to the region as part of a trillion-dollar "One Belt, One Road" strategy to increase ties to Africa and Europe . China is the biggest recipient of Iranian oil, and accounts for almost a third of Tehran's overall trade.
China is seen to be opening trade to the region as part of a trillion-dollar "One Belt, One Road" strategy to increase ties to Africa and Europe . China is the biggest recipient of Iranian oil, and accounts for almost a third of Tehran's overall trade.
Beijing previously opened two lines of credit totalling $4.2 billion, to construct high-speed railway lines between Tehran and the cities of Mashhad and Isfahan,
According to Iran Daily, apart from Beijing, Seoul's Exim Bank opened a €8 billion credit line to Tehran in August and negotiation are currently ongoing between banks in Germany, Austria, and Denmark to open a credit line in the range of $22 billion to Iran.
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