The renewed American sanctions against Iran impact the various geo-economic initiatives in Eurasia. Sanctions on Iran were reimposed by Trump on November 5, thereby making it more difficult for China to further integrate Iran in the Belt and Road Initiative (BRI). On the other hand, Indian investment in Iran, especially in the port of Chabahar, are exempted from such sanctions. An Asia Time article [Iran could be the key to cementing India and Japan ties] unpacks this issue. India’s investments in this port are not just about investing in Iran but also about reaching Afghanistan, Caucasus, Central Asia and Europe via Iran. In that sense, one could argue that the sanctions against Iran are indirectly targeted against Chinese BRI and promoting American Indo-pacific allies, India and Japan and their geo-economic visions. Together with India, Japan is also seriously interested in investing in Iran (mainly for energy security according to the article).
Another noteworthy case of competition between the Chinese and the Indo-Japanese geo-economics is laid out in the EastAsiaForum article [Asia–Africa Growth Corridor at the crossroads of business and geopolitics]. China is the largest source of FDI in Africa. India and Japan have introduced their own initiative, The Asia-Africa Growth Corridor (AAGC). The article examines the ways in which AAGC is both a move to geopolitically counter China’s BRI investments in Africa and an initiative that serves the private sector. The article argues that “the AAGC reflects a convergence of bottom-up and top-down processes — Japanese business interest in using India as a springboard to Africa crossed over with Tokyo and New Delhi’s desire to provide a geopolitical alternative to China’s BRI.” India and Japan, with the indirect support of the US, are trying to counterbalance the increasing momentum that BRI is creating in Africa and Asia.
M. Forough
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