Iran's Trade With China in 2019 Declines 34%
EghtesadOnline: Iran’s commercial exchanges with its biggest trading partner China amounted to $23.02 billion in 2019 to register a decline of 34.3% compared to 2018.
Data released by China’s General Administration of Customs show Iran exported $13.43 billion worth of commodities to China during the period under review, 36.3% less year-on-year.
In return, according to Financial Tribune, China exported $9.59 billion worth of goods to Iran last year, down 31.2% YOY.
Bilateral trade in December stood at $1.75 billion, indicating a 0.4% decrease compared with the prior year's same month.
Exports to China went down by 35.89% YOY in December to hit $876.67 million.
China’s exports to Iran during the last month of 2019 witnessed a staggering year-on-year rise of 123.61% to reach $874.81 million.
ICCIMA to Host Trade Forum With China
A meeting to survey trade opportunities with China is scheduled to be held at Iran Chamber of Commerce, Industries, Mines and Agriculture on Jan. 27.
Hamid Zadboum, the head of Trade Promotion Organization of Iran, is scheduled to attend the event, coordinated by Iran-China Chamber of Commerce, ICCIMA’s news portal reported.
Businesspeople keen on attending the meeting may contact 021-88346700 for more information.
Chinese Investment in Iran
According to the American Enterprise Institute, China invested $26.92 billion in Iran from 2005 to 2019.
Of the total investment, $1.53 billion were made in chemical industries, $11.1 billion in energy, $4.96 billion in metals, $160 million in real estate, $6.92 billion in transport and $2.25 billion in utilities.
The value of China’s overseas investments and construction projects since 2005 exceeds $2 trillion.
In 2019, the average size of Chinese construction sector’s overseas deals shrank and investment fell outright. Greenfield investment and the Belt and Road Initiative became relatively more important within a smaller Chinese footprint overall.
“Iran’s private sector is in negotiations with the Chinese for creating a barter trade system,” Chairman of Tehran Chamber of Commerce, Industries, Mines and Agriculture Masoud Khansari said upon returning from a recent visit to China.
“Negotiations are in their final stages and when implemented, barter trade will be carried out in cooperation with China and Hong Kong. This will facilitate and speed up our commercial ties,” Khansari was quoted as saying by the news portal of Iran Chamber of Commerce.
The official noted that the private sectors of Iran and China have agreed to launch an arbitration center to settle any commercial dispute between traders and businesspeople of the two countries after the US reimposition of economic sanctions against the Islamic Republic.
“We had meetings with officials of China, Beijing and Shanghai chambers of commerce as well as Iranians residing in China … The Chinese sides expressed their willingness to invest in Iranian mineral, power plant and agricultural projects that promise early profit returns, but said their investments will be indirect due to the sanctions against Iran,” he said.
Khansari noted that Iran is aiming to increase the share of Chinese citizens in inbound tourism and agreements have been reached for China’s tourism agencies to introduce Iran as a destination to their clients.