The Role of Geo-economy of Energy in Linkage of Iran and China

Subject Areas :

Ali Adami ¹ , Elham Keshvarz Moghadam ²

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Received: 2013-04-06 Accepted : 2013-06-15 Published : 2013-06-01

Keywords: security of energy, mutual interdependence, the expansion of oil fields, energy pipelines,

Abstract :

As we know for the past three decades Iran have been trying to find ways to counter economic sanctions especially the oil sanctions by the West. Meanwhile during this period China started economic reforms and the implementation of these reforms resulted into high economic growth in a way that it has become the second world economic power. The emergence of China as an economic power has been a strategic breakthrough for Iran. Therefore, due to mutual need of the two sides the interaction and ties between Iran and China increases in different fields, especially in energy sector. Iran finds China as a suitable market for sale of energy, on the other hand China finds Iran as a country with vast energy sources which is not under the influence of the United States and the transit of energy from Iran is secure and in this way its energy security is ensured. China also did not have the limitation of Western sanctions and therefore invested considerably in Iranian oil sector and in this way played an important role in creation of mutual interdependence. Mutual interdependence in oil sector has created a direct linkage which is in positive interest of the two countries.