Economic analysts mainly have two different opinions on whether the US and China trade war will affect on economy of Iran or not. The first group believes that due to the low role of Iran in global economy, this influence is insignificant and not considerable. While the second group of analysts think that Iran will greatly be influenced in this trade war as it has wide trading relationships with china as well as controversy with US.  Does this trade war only influence negatively on Iran economy or can be beneficial?

The US and China cold war can affect on Iran in three main following ways:

  • Yuan depreciation, causing the imports from China to become cheaper. Yuan depreciation is known as the arm of China against US in the cold war!
  • China recession, influencing on energy demand from Iran. If china economic growth as the world’s second-largest economy becomes slow, can directly influence on energy imports of this country from Iran.
  • China limitation to import agricultural products from US will encourage this country to import agro products from other countries. A great part of US exports to China is related to agro products (120 billion dollars) and the new tariffs or prohibition on imports can force China to find other agro suppliers like Brazil or India which are the main suppliers of Iran agro commodities too! This event has a negative influence on agro market of Iran as its foreign suppliers may prefer to export their products to a bigger market like China!