I read about how Iran has been looking to China for trade in response to sanctions from the United States and the West and how Iran already trades with China using oil. However, what I want to know is if there are any official trade deals and policies that Iran has with China. I also want to know that if any official deals exist, are they able to provide Iran with the economic activity and resources it needs to offset the negative effects of economic sanctions.
if it does, can they protect Iran's economy from economic sanctions?
Because the world economic activities are USA-based.
- Petrodollar system
The world's oil business is controlled by the USD.
- Domination of USD
USD is the dominant reserve currency in the world. As long as the USD is the dominant transaction or reserve currency in the world, no one even the EU can do anything.
- Size of Economy
The following image shows the US GDP as the % of the world's economy from 1700 to 2008.
We can see how the US GDP started to dominate the world-economy from WW2 and onwards.
The following image shows the current status of the world economy which is now 24% of the world.
What do you see in this image? Almost 25% of the world economy is in the USA.
Because of these factors, the USA has a significant influence on the world banking system.
Because of all these, Iran proposed a bloc of a cryptocurrency-based monetary system. But, this is very hard to implement as the other countries are one way or another dependent on the US economy.
Recently, China announced a cryptocurrency-based monetary system. It remains to be seen how this policy unfolds and if Iran can benefit from this in the coming years.