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Opinion / Op-Ed Contributors

Iran deal makes China upgrade exports

By Mei Xinyu (China Daily) Updated: 2015-04-10 08:08

Iran deal makes China upgrade exports

The general view of the plenary session on Iran's potential nuclear framework deal in Lausanne, Switzerland, on March 29, 2015. Foreign ministers from major world powers on Sunday night kicked off a plenary session to further bridge gaps on Iran's potential nuclear framework deal. [Photo/Xinhua]

With the lifting of the West-imposed oil and financial sanctions on Iran after a framework agreement was reached between Iran and the 5+1 nations, Teheran will get more space to improve the national economy and the livelihoods of the Iranian people.

The framework deal between Iran and the five permanent members of the UN Security Council plus Germany is the result of multiple factors. On one hand, the top Iranian leaders, keeping in mind the demand of the people, have shown a strong desire to emerge out the economic stagnation caused by the tough Western sanctions. On the other, the US-led Western countries have exhibited increasing willingness to loosen sanctions, because many of their leaders have realized that the stability and social cohesion of Iran even under sanctions are still much better than in the Arab countries. As a result, they have come to believe that sanctions alone cannot topple the Iranian leadership.

The Western leaders also believe that the sanctions on Iran have provided China and Russia with a profitable market without Western competitors, as well as a political and strategic foothold in the Gulf region. Moreover, the sanctions imposed on Iran, they feel, have given more power to Saudi Arabia to sway the international oil market, from which Islamist forces have directly or indirectly benefited.

It is because of these factors that the Western leaders believe that by continuing the sanctions against Iran they would accrue more losses instead of making gains.

US President Barack Obama's lackluster domestic as well as foreign policies during his second term meant he would not have any political legacy. This fear strongly motivated Obama to achieve a major diplomatic breakthrough, especially with longtime adversary Iran. With the same motivation, the Obama administration also started the talks to normalize diplomatic relations with Cuba.

In response to the overtures from the US, Iran has considerably increased its oil exports since President Hassan Rouhani assumed office. The appreciation of the Iranian currency, rial, against the dollar and the euro in recent days also showed that the Iranian people and business circles were optimistic about a compromise deal being struck with the 5+1 nations.

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