On the Status of Iran’s Oil Trade with China in Pre- Nuclear Deal

Abstract

Energy has been the main pillar of the global growth and development. Amongst various sources of energy, oil has the largest share in the global energy consumption. As these energy reserves tend to decline, few regions, most notably the Middle East which has been at the forefront with the largest reserves, can fulfill the rising global energy demand. Even then, in view of its vast energy potential, this region has attracted the attention of the growing economies of the world. This paper intends to look at one of the significant producers in the Persian Gulf energy market, Iran, and its energy relations with the Asian giant, China, from the International Relations perspective. Having a wide variety of capacities, Iran-China relations in recent years has made special dynamics, so that in different fields, this relationship has been steadily expanding and deepening. One of the most important capacity building areas in Iran-China relations is energy. The area of energy certainly has played the most important role in the dynamics of these relationships. Potential opportunities of bilateral cooperation between Iran and China in the field of energy are wide, and in case of realization it can have positive consequences of the political and security.<br /> The aim of this paper is to cover the current oil trade situation between the two countries as well as the existing problems that are limiting the growth of this relation such as international sanctions and at the end some suggestions in order to enlarge the trade between the two countries. In conclusion, we can say that a massive capacity on the basis of "energy" in relations between Iran and China have emerged that can be used to promote economic relations between the two countries in the framework of a comprehensive strategy that benefits both countries and the region. This Capacity must be accompanied with "mutual desire" to take place. Especially noteworthy is that the existing capacities should not only be considered as "energy economy" and cooperation in the field of energy, but also should be seen as the overall framework of "security" and "Asian solidarity".<br /> <strong>JEL Classification:</strong> F14, F18