New | China to help Iran build high-speed rail as part of ‘One Belt, One Road’ strategy

China has agreed to give Iran financial aid to help build the Middle East nation’s high-speed train system as part of Beijing’s “One Belt, One Road” initiative.

The agreement, reached as President Xi Jinping wrapped up his tour in Tehran on Saturday, is Beijing’s latest effort to expand its diplomatic presence overseas.

Xi said at a joint press conference with his Iranian counterpart Hassan Rowhani that China would cooperate in building a rapid train system between Tehran and Mashhad, and help finance the projects.

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The two leaders also saw the signing of 17 bilateral agreement documents for cooperation in fields including infrastructure, investment and the environment.

The two nations vowed to boost bilateral trade to US$600 billion in the coming decade. Trade between the two countries stood at US$52 billion in 2014, but dropped last year due to plunging oil prices.

China is Iran’s biggest trade partner, and continued buying oil from Iran after nuclear-related sanctions were tightened in 2012, despite US pressure.

“China has always stood by the side of the Iranian nation during hard days,” Rowhani said.