On Monday, the White House spokesperson Jen Psaki told reporters that the US administration would evaluate the recently signed $400 billion investment deal between China and Iran to understand whether it creates a situation where any sanctions need to be implemented according to American law. However, any investigation has not been started yet at this point, spokesperson Psaki added.
The announcement came after the signing of a 25-year cooperation agreement which was signed between China and Iran within the scope of the Chinese Belt and Road Initiative. By this initiative, China aims to strengthen its political and economic influence in areas where the project would contain, through massive investments in sectors, including infrastructure and strategic sectors.
The Iranian-Chinese agreement also contains cooperation in the defense sector, which has crucial importance given accelerating tensions with the West and recent joint military drills in the Persian Gulf region. The two states emphasized the importance of the agreement in a joint statement issued after the signing ceremony, saying boosting strategic partnership between the two countries is the main aim.
The $400 billion agreement foresees Iranian involvement in the Belt and Road Initiative, which is the idea first proposed during Chinese President Xi Jinping’s visit to Tehran in January 2016. The agreement materialized during the Chinese Foreign Minister Wang Yi’s official visit to Iran last weekend.