Iran’s favorable prospects for Chinese ones: Iranian commercial couselor

By APD writer Xiao Yunhong
Beijing, Nov. 22 (APD) – Iran is a favorable investment destination for Chinese investors, said an Iranian commercial counselor.

 

Iran’s favorable prospects for Chinese ones: Iranian commercial couselor

The Iranian commercial counselor Seyed Reza Seyed Aghazadeh. Photo by Haohan Yang.
The diplomat Seyed Reza Seyed Aghazadeh made the remarks during an interview with the Asia Pacific Daily (APD) on the sidelines of the 9th China Overseas Investment Fair in which he discussed major cooperative fields, Iran’s preferential policies to Chinese investors and suggestions on propelling the Chinese investment in Iran under the backstop of the UN removing sanctions on Iran in Jan, 2016.
Diversified cooperative areas
“Iran is the world’s second largest oil supplier. Our country also boasts many other natural resources,” Seyed said, “Those resources in Iran cannot be found in any places of any countries.”
“Iran has abundant energy and mineral resources, which makes it a very suitable place for energy and related industries, such as cement production,” he said.

 

Iran’s favorable prospects for Chinese ones: Iranian commercial couselor

The Iranian commercial counselor Seyed Reza Seyed Aghazadeh has accepted Asia Pacific Daily's interview. Photo by Haohan Yang.
Seyed said this is a field that Chinese companies could invest in. Iranian companies can produce these products, not just selling them to Iranian markets, but also to international markets, including China.
Some Chinese companies have started business with Iranian firms in areas such as oil, mine and cement, he said.
“Besides, we have gas production which can produce many products, and further export them to many foreign countries,” said the commercial counselor.
He also said industrial investment is another cooperative area, explaining that “China is the world’s largest machinery and equipment production country. This is the advantage of China, which can remind us that industrial projects can be profitable for the two sides.”
“Belt and Road” initiative benefits all countries involved
The “Belt and Road” Initiative is the China’s big plan that integrates the capacity of all the countries along the route, launching investment and improving infrastructure in the region, Seyed said.
He took an example of the Asian Infrastructure Investment Bank (AIIB). The financial institution has helped improve infrastructure in the region and will further optimize the infrastructure investment.
“When we have this infrastructure connection, there is a solid foundation of changing the products and benefiting people of two sides, efficiently transferring the investments among these countries,” Seyed said.
“For Iran, in this case, using market rules and Iran’s investment law will be beneficial to all the countries,” he said.
Seyed also noted that Iran is one of important partners supporting the “Belt and Road” Initiative.
“As you know, since the ancient time, Iran and China have been connected by the Silk Road. Now the Silk Road has been expanded to many other countries that were not involved before, which means there are many investment and business opportunities for the countries involved, but it needs more cooperation and contexts to understand these countries and finding the projects that will benefit all. It needs more negotiations and talks between the countries,” he said
Profitable preferential policies for Chinese traders
Firstly, Iran and China have already signed the Double Taxation Treaty, which means that if the Chinese traders go to invest in Iran or Iranian ones come to invest in China, they just pay tax in one country, not two times, Seyed said.
Secondly, reciprocal protectional investment agreement has also been signed between the two sides, which will provide more protection for Chinese companies in Iran in accordance with both the Iranian law and the international law, he said.
Thirdly, Iran has seven free trade zones including special economic zones and tax incentives for exportation and incentives for visa permission, work permits and residential permits of Iranian areas. The Iranian government has also provided general policies to make foreigners do business easier in the country, he said.
Notably, Iran is now making efforts to improve the investment environment for foreign private investors, he stressed.

Iran’s favorable prospects for Chinese ones: Iranian commercial couselor

 

The Iranian commercial counselor Seyed Reza Seyed Aghazadeh has accepted Asia Pacific Daily's interview. Photo by Haohan Yang.
Hints to help Chinese investors in Iran
Seyed said UN’s removing sanctions has given Iran more room and freedom to arrange its own development strategies. According to its five-year development plans, Iran will open its economy by giving more room to private sectors and decreasing the government’s share in economy, Meanwhile, the government will enhance the efficiency of the economy and markets.
It is noted that subsidy is the big problem for a market economy mechanism, now Iran has already taken big steps to remove the restrictions on elements of the subsidies, which means Iranian government has already paid more attention to its development and its people’s judgment about the economy. What is important for Iran is to follow policies and procedures to maintain economic growth, which implies that Chinese companies will be sure about the implementation of market mechanism in Iran, he said.
Right now, the Iranian government has implemented rules to set the prices. Day by day, Iran will be gradually removing the intervention in markets and giving more room for the private sectors and mechanism of the market to set the prices and allocate resources, which means that investment policies and decisions mostly are focusing on the analysis of whether the projects are profitable or not, which can be conductive to both Iran and China, especially for getting Chinese investors and businessmen better understanding of what is going on with the Iranian market and how will the Iranian economy trend go five years later, he said.
“In my opinion, I think the Iranian economy may be more open or be market-based economy,” he stressed.

 

(ASIA PACIFIC DAILY)