A report from EJ Insight suggests that Iran is now widely tipped as the next ‘super BRICS’ country.
It cites Reuters as saying that Iran is the largest country to rejoin the global economic system in the post-communist era since 1990.
Martin Sorrel, chief executive of the WPP Group, a global advertising giant, even referred to Iran as the “biggest unexplored market in existence apart from the moon and Mars”.
Even though China has already replaced Germany as Iran’s largest trading partner, many observers believe Tehran is about to fully open up its market to the West, and this may lead to a downward trend in the economic ties between China and Iran in the long run.
Mohsen Safaei Farahani, the former Undersecretary for Economic Affairs of Iran, says Iranians would definitely prefer high-quality western products to poorly made Chinese goods if they had a choice.
He predicts that as western companies start entering Iran, the trade volume between China and Iran is likely to fall from 2017 onwards, and it would just be a matter of time before big Chinese companies get crowded out of the Iranian market by their western competitors.
However, the report says that as Iran is a strategically important component of China’s One Belt, One Road blueprint, it is unlikely that Beijing would give up the Iranian market without putting up a good fight in the face of the western challenge.
(Source: EJ Insight)