A report published by the United-Kingdom based publication, Petroleum Economist, claims that 5000 Chinese security personnel will be protecting $280 billion worth of investment in Iran, as both nations become more wary of the United States.
According to the details of the agreement, finalised when Iranian Foreign Minister Mohammad Zarif paid a visit to his Chinese counterpart Wang Li at the end of August, China will be investing an additional $120 billion in the transport sector of Iran, as part of the deal.
The agreement is reminiscent of the China Pakistan Economic Corridor deal, and is in line with the Chinese government's Belt and Road Initiative. Projects of this scale have also been witnessed across Central Asia, although it is controversial to ask whether these investments have benefited the populations affected.
The Petroleum Economist claims that China will invest the money into Iran initially over two five-year periods, and Chinese firms will get the right of first refusal over new energy projects in Iran under the strategic agreement. The wider deal between Tehran and Beijing is built over a staggered 25 year period.
China intends to utilise the low cost labour available in Iran to build factories, designed and overseen by large Chinese manufacturing companies, with identical specifications and operations to those in China, according to the Iranian source who spoke to the UK-based publication about the matter.
In order to ensure the security of the projects undertaken by the Chinese, Iran will allow nearly 5,000 Chinese soldiers on the ground in the country to guard the investments. China will also increase import of oil from Iran in light of the new partnership, the report underlines, in spite of American threats to impose sanctions on nations that continue to import Iranian oil.