Relationship Between Iran and China in Light of Economic Sanctions Essay

Relationship Between Iran and chinaware in Light of Economic Sanctions Imposed on Iran - Essay ExampleIndia, like some(prenominal) other countries, has invested billions of dollars in Iranian oil fields towards business oil trading purposes as well as research and development of oil refineries in Iran. The Economics Times reported that the Indian government-owned ONGC along with the private sector Ashok Leyland Project Services Ltd of the Hinduja group won $10 billion bid for investing in Iranian oil company, Naftiran Intertrade Co and Petropars Ltd in 2008. However, India eventually lost this deal to chinaware after the China National Petroleum Corp (CNPC) offered to conduct towards NICOs share of the $ 2.5 billion cost for developing the field that holds an estimated 42 billion barrels of oil reserves, one of the worlds largest finds in the last 30 years accord to The Economics Times news report. Irans conduit towards Indias proposition and favoring China is a result of supr anational business relations between the countries, which are hike up shaped by their cultures, business negotiations and political positions. It is important to note that both India and China have high demand for oil in both domestic and commercial sectors (Oil Prices, 2). Moreover, China is a larger and greater potential for business compared to India. Reports from investigation agencies revealed that inward FDI into China is at least two to three generation higher than what is reported and FDI is majorly from the United States, the United Kingdom, France and other European nations. Yet, Chinas high corruption and regulations still discourage FDI by significant center (Wei, 200). Sources also report that corruption has been tackled to a great extent in China compared to India, where corruption still continues to haunt its economic progress (Ragunathan, para 1). decrease in Chinese corruption... This essay offers a comprehensive analysis of the impact, that international sanct ions imposition on Iran would exert on the nature of the familys between China and Iran. charm most of the other nations that traded with Iran before the imposition of the sanctions, have stopped or minimized their trade, China still seemed to be inclined towards Iranian oil reserves, owe to its huge investments in Iran. In fact, Iran dismissed its deal with Indias oil company and confirmed the same with Chinas oil company a few(prenominal) years before the sanctions were announced. China did not heed to the warnings of sanctions from the US and succeeded in this and many other business deals in order to secure its oil reserves. With China already investing in oil business at international level with Iranian companies, the proposed sanctions on Iran will result in serious consequences for China. The Iran-China relationship has only intensified during last decade, despite warnings from the US to China to stay away from Iran because of Irans advent into nuclear program and refusal to support peace projects in neighboring countries. The US had delayed sanctions on Iran for many years because of Chinas involvement with Iran, which was an obstacle to putting international pressure on Iran.China should continue to abide by its principles and norms of not seeking control, upholding principles of sovereignty, engaging in peaceful development and in being a responsible stakeholder in the international system.