A Chinese state-owned investment firm has provided a US$10 billion credit line for Iranian banks, Iran’s central bank president said on Saturday.
The contract was signed in Beijing between CITIC (中國中信) investment group and a delegation of Iranian banks led by central bank president Valiollah Seif.
The Iran Daily said the funds would finance water, energy and transport projects.
Photo: Reuters
Iran is vital to China’s trade ambitions as it develops its trillion-dollar “One Belt, One Road” strategy aimed at dramatically boosting its ties to Europe and Africa.
China is already Iran’s biggest oil customer and accounts for one-thirds of its overall trade.
Bilateral trade was just US$31 billion last year, but the figure jumped more than 30 percent in the first six months of this year.
In addition to the credit line, the Export-Import Bank of China (中國進出口銀行) committed to a further US$10 billion in loans, while the China Development Bank (中國國家開發銀行) signed preliminary deals with Iran for US$15 billion in infrastructure and production projects, Seif said.
The contracts reflect “a strong will for continuation of cooperation between the two countries,” Seif said.
In total, China has agreed to allocate US$35 billion in financing and loans for Iran’s economy, state news agency IRNA quoted Seif as saying.
The credit line will use euros and yuan to help bypass US sanctions that have continued, despite the nuclear deal between Iran and world powers in 2015.
Since the lifting of sanctions, Beijing has opened two credit lines worth US$4.2 billion to build high-speed railway lines linking Tehran with Mashhad and Isfahan, the Iran Daily reported.
The latest move follows an 8 billion euro (US$9.56 billion) credit deal signed with South Korea’s Exim bank last month.
European banks remain wary of penalties from Washington for working with Iran, but talks are said to be at an advanced stage for US$22 billion in credit deals with banks from Austria, Denmark and Germany.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US