China has agreed to invest in Iran's energy sector in a bid to take the early-bird opportunities in an Iran fresh from sanctions relief.
During a visit by Chinese President Xi Jinping to Tehran who was the first Chinese president to visit the country in 14 years, the two countries signed 17 documents for strategic cooperation in economic, industrial, cultural and judicial fields.
Regarding energy cooperation, the two countries, given their mutual relative economic advantages, will promote mutual and multilateral ties in the fields of fossil and renewable energies, security of supply and demand and distribution of fossil fuels.
Furthermore, according to the agreement, the Chinese side will finance upstream and downstream energy projects in Iran while the Iranian side will offer the necessary facilities and utilities for the development of the projects.
The Chinese president’s trip to Tehran is the last leg of his three-nation tour which has also taken him to Saudi Arabia and Egypt.
The value of trade transactions between Tehran and Beijing stood at some $52 billion in 2014. However, the figure dropped in 2015 due to decreasing oil prices.