Iran Sidesteps Trade Sanctions With Help From Chinese Firms

As Western sanctions try to punish and isolate Iran, China has surged to become its largest trading partner, with $22 billion in trade in 2009, predicted to grow to $50 billion by 2016. China supplies a range of goods, trying to replace Western expertise in infrastructure construction, energy plants, and oil and gas management. Still, some Iranians complain that Chinese firms use their position to overcharge, and inferior quality of Chinese goods sometimes forces Iranians to resort to paying higher black-market prices for European goods. Iran’s economy is in shambles, with high unemployment and inflation, along with a bloated public sector, but its large population and the relative absence of foreign firms make it a tempting market for Chinese exporters. Of course, the relationship can anticipate pressure from China's top customer, the United States, which purchased nearly $300 billion in exports in 2009. – YaleGlobal