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China’s Energy Driven Initiatives with Iran: Implications for the United States

Abstract: This article explores China’s contemporary energy initiative with the Islamic Republic of Iran, which is one of the largest energy reserves regions. Iran is one of the five natural gas producers and top 10 oil producers in the world – it has an asset of 1/3 of OPEC natural gas reserves. China has initiated the upstream and downstream joint ventures with Iran, banks and backed-loans policies and its companies of national oil are mounting the capacity of energy that will flow from Iran. China’s financial potency, zero military installation and limited political involvement in the region gives her a unique balance from its open access to the Iran energy resources. Critically, it is evidenced that the political implications of China’s energy gaining strategy, the potential for conflict, cooperation with the US, and the probability of the repositioning of major powers in Iran will give China a unique vantage point in the future. It’s an epicenter for US-China rivalry too.