Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, whether his Department has received reports on the potential impact of Chinese investment in the Caspian Sea region on the Iranian economy.

We are aware of growing Chinese investment in the Caspian Sea region. The UK recognises that China is an important source of aid, trade and investment for many countries, and has become a dominant player in Iran's economy. The 25 Year Strategic Cooperation Agreement from March 2021 is reported to include Chinese investment in Iran across areas such as oil production and surveillance technology. However, the relationship is unbalanced: only 0.25% of Chinese trade output heads to Iran, whereas China makes up almost 25% of Iran's total trade.