Effects of Iran and China Relation on Auto Industry/ Problems of Automakers will be Solved?

Khodrocar – After the sanctions against the auto industry began serious challenges happened to the auto industry, part manufacturing and car production. China cut out its relation with Iran due to sanctions and Kenlun bank which was the only bank to works with Iran cut its relation with us.

But after a while and tons of negotiations now the Chinese bank agreed to continue its relation with Iranian banks.

While the auto industry is challenged with shortage of part and production and sanctions made millions of problems for this industry the news of restarting relation with Chinese bank could be good for the while industry and they should take this chance to solve their problems.

"China and Iran had a good relation in auto industry but after sanctions this relation got a bit lower. Most of Chinese companies invest in Iran’s auto industry after the JCPOA .” Nader Vahab Aghaei, an expert of auto industry told khodrocar reporter. "Chinese companies had a barter relation with Iranian sides for example Iranian order parts to Chinese companies then pay them with goods.”

"With the ability to do banking transactions, two countries will be able to trade easily and importing part and cars will be better. The activity of Kenlun bank with Iran is along the permission of Chinese for buying oil from Iran.” he added.

"China’s cooperation with Iran is alongside the sanctions and Kenlun is working in this frame and it would be temporary. The news is hopeful and can cool down the auto industry in short terms but industries with more dependence to foreign countries will suffer more during sanctions.” He said.

He also believe that China doesn’t have the technology and some American parts of their cars can’t be import to Iran and they won’t risk to cooperate with Iran.

Khodrocar Reporter: Hadi Sianaki

Khodrocar Translator: Amin Zamani