Kunlun Bank Rejecting the Auto Industry/ Supplying Components Harder than Ever
Kunlun bank as a way of transaction between Iran and China can’t work with auto industry due to sanctions and we must wait to see what will happen to the part and first material supplement.
Khodrocar – USA focused on the auto industry as one of the most strategic and developing industries in Iran and put pressure on Iran’s auto industry partners to stop their relation with us.
Banking transaction is a challenge during the sanctions and China faced with a big challenge in relation with Iran. After a while Kunlun bank exempted from sanction and a new hope happened among auto industry. However in recent days a news came out that related industries to the automotive, petrochemical, shipping and heavy metals can’t work with this bank.
A difference between this period of sanctions with the last one is, in the past China continued its relation with Iran but in this period all relations ways with Kunlun bank are blocked.
The most challenging part is supplying parts and first materials which seems will face problems. In the past period of sanctions both countries found a way to continue their trading but now we have to wait and see if China and Iran can agree on a way except from Kunlun or the relation will completely cut out.
In the past days Hariri, vice president of Iran and China chamber of commerce said that transactions between Iran and China are happening and there is no problem. At that time an expert of auto industry told Khodrocar that this banking relation between Iran and China is in follow of sanctions and Kunlun will act in the frame of sanctions so some industries are not exempt from it.
"China is a great partner of Iran’s auto industry and their component and vehicle transaction happened in a big scale. China’s profit margin from trading with Iran is bigger than we think and it is somehow impossible to see China passing this profit easily and they surely looking for a way to work.” Abdollah Babaei, an expert of auto industry told khodrocar reporter.
"Right now exchanges between Iran and China are a lot and some Chinese vehicles are producing in Iran. Main problem of automakers is liquidity and it doesn’t relate to political or trading affairs. If they have the money then they will find a way to supply components but right now they are suffering losses with each produced cars.” He added.
Banking transaction is a challenge during the sanctions and China faced with a big challenge in relation with Iran. After a while Kunlun bank exempted from sanction and a new hope happened among auto industry. However in recent days a news came out that related industries to the automotive, petrochemical, shipping and heavy metals can’t work with this bank.
A difference between this period of sanctions with the last one is, in the past China continued its relation with Iran but in this period all relations ways with Kunlun bank are blocked.
The most challenging part is supplying parts and first materials which seems will face problems. In the past period of sanctions both countries found a way to continue their trading but now we have to wait and see if China and Iran can agree on a way except from Kunlun or the relation will completely cut out.
In the past days Hariri, vice president of Iran and China chamber of commerce said that transactions between Iran and China are happening and there is no problem. At that time an expert of auto industry told Khodrocar that this banking relation between Iran and China is in follow of sanctions and Kunlun will act in the frame of sanctions so some industries are not exempt from it.
"China is a great partner of Iran’s auto industry and their component and vehicle transaction happened in a big scale. China’s profit margin from trading with Iran is bigger than we think and it is somehow impossible to see China passing this profit easily and they surely looking for a way to work.” Abdollah Babaei, an expert of auto industry told khodrocar reporter.
"Right now exchanges between Iran and China are a lot and some Chinese vehicles are producing in Iran. Main problem of automakers is liquidity and it doesn’t relate to political or trading affairs. If they have the money then they will find a way to supply components but right now they are suffering losses with each produced cars.” He added.
Khodrocar Reporter: Hadi Sianaki
Khodrocar Translator: Amin Zamani
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