“China’s investment in Iran has increased tenfold to 2 billion”

1402/02/17 Tuesday

The Islamic Republic is seeking stronger trade ties in the east, including with China and Russia, in the wake of sweeping Western sanctions. China has increased investment in Iran tenfold, but unhappy with Houthi attacks in the Red Sea has issued warnings to Iran.

China’s investment in Iran has increased tenfold in one year. According to the head of the Foreign Investment Organization, China has increased its investment from $200 million to $2 billion.

The capital is said to be flowing mainly to projects in the fields of logistics, infrastructure and mining.

Chinese companies investing in housing

Earlier, the state-run ISNA news agency quoted Mehdi Hedayat, the CEO of the Tehran City Renovation Organization, reported that the capital municipality had “reached a memorandum of understanding (construction of housing) of 200,000 units during the visit of the Chinese group to Tehran” and that Tehran municipality intends to visit the technologies and “hold technical meetings with Chinese companies” to “try to transfer these technologies to Iran.”

Among the experts’ concerns about handing over the housing construction sector to Chinese companies is low standards of housing production and their poor quality. On the other hand, Chinese construction companies with more than $390 billion in debt in the wake of their failed projects will increase economic risks and risks of investing in housing by entering the housing sector in Iran.