China tipped to profit after Donald Trump quits Iran nuclear deal
Threat of US sanctions could drive out European and Japanese investors, increasing opportunities for Chinese firms, particularly in the oil sector, analysts suggest
The US decision to reimpose sanctions on Iran could scare off European investors, but oil thirsty China may step into the void and ramp up business links with the country, according to analysts.
China, which is already Iran’s top trade partner and one of its biggest buyers of crude, has signalled that it intends to keep working with the Islamic regime despite the US move.
Beijing is a signatory of the 2015 Iran nuclear deal that had eased sanctions on Tehran, but President Donald Trump quit the accord earlier this month and said Washington would reinstate punitive measures.
“By driving away American, European and Japanese companies, the sanctions could increase opportunities for Chinese businesses,” said Hu Xingdou, an economist at the Beijing Institute of Technology.
The Iran deal has been highly profitable for the Asian giant. Chinese businesses involved in Iranian developments are worth at least US$33 billion as of June 2017 according to Beijing’s Commerce Ministry – part of the country’s ambitious Belt and Road global infrastructure initiative.