Between the Elephant and the Dragon

Between the Elephant and the Dragon

India China; India- Iran

News:

1.Harsh V. Pant, professor of International relations at King’s college london, observe that both India and China should cooperate on Iran’s Chabahar Port.

Important Facts:

2. After the US decision to withdraw from Iran nuclear deal, It is important for Iran to engage all the major powers.
3. Both India and china has lots of stake in Iran.
4. Iran’s attempt to woo chinese investment in chabahar, often projected as India’s pet project (and a response to Gwadar in Pakistan), has raised eyebrow in New Delhi. Inviting Chinese investment is perceived as an attempt to dilute Indian influence.
5. Chabahar for Iran means pure business.It even invited Pakistan for the inaugural ceremony.Post Sanctions, in a quest for multilateralism, Iran is trying to woo various countries to invest in the Chabahar Port.
6. Iran-China Ties:

•  China never severed its ties with Iran, even during the sanctions era.
• Post Sanctions, Chinese President was the first head of State to visit Iran.
• China played a crucial role in the nuclear deal by bringing all the countries to the negotiating table.
• Iran is trying to woo Chinese investments in Chabahar
• With US showing hostility towards Iran, it needs to maintain good relations with a rising power like China.
• China has emerged as Iran’s largest trading partner over the years.
• China is the largest importer of Iranian oil.
• Iran is crucial to China’s BRI due it geographic location as a bridge between Persian Gulf and Central Asia.
• Investments in Iran would give China control over 2 of the 3 major routes to world markets.
• For Iran, BRI would help in making it an inevitable transit hub for countries like China, India and Russia.
• China as a UNSC Permanent member and its veto power would be a great asset to Iran.

7. Reason for india to collaborate with China

• India should not focus exclusively upon the growing influence of China in Iran.
• Iran’s reliance on China will only grow after US withdrawal from the nuclear pact.
• In all its ties, India should try to make economics and politics complement each other.
• India has to capitalize on all its existing ties. For example, in Japan, India should offer favourable terms of trade in the region vis-a-vis China.
• Frequent Joint Naval exercises should be held in the Persian Gulf
• India and China can jointly invest in Iran as they are planning to do in Afghanistan.