The less talked about is the rail link between Iran and China which just opened on May 25, 2025, just weeks before the Israeli pre-emptive strike. Was it a co-incidence or a calculated move, knowing that cargos are going to move to and from China in bulk, which will make the airspace over Iran less free and easy for Israel's F35s, if Chinese air defense equipment starts arriving in Iran which will not make the Israeli strike on an unprepared Iran just child's play.
Iran has a 25-year US$400 billion 'strategic co-operation pact' with China, which goes to show what those rail carriages are now capable of delivering to Iran. Oil from Iran to China is the static, but what is China providing Iran is not clear cut. 'Strategic co-operation' covers a lot of things.
Suffice to say, the strike on Iran was, as much as over the crippling of Iran's nuclear ambition, also meant to cripple Iran's oil flow to China, another avenue to hit China's underbelly. But as the plot goes awry with Iran touting to blockade the Straits of Hormuz, the USA is in panic mode, even telling China to use its influence to deter Iran from closing down the Straits of Hormuz. Why would China really be rattled over the closure of the Straits of Hormuz' when oil shipments could now even be delivered using the rail link? More expensive and inconvenient, but not totally impossible.
Anonymous
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Just like EVs, China is going to experience a boom in military equipment sales. China has the raw materials like rare earth, iron and steel, cheap energy, skilled workers, a strong manufacturing base and Government subsidies that are always being channeled into growth sectors. Now the military weapons export sector is going to be another growth sector for China to leverage on.
While the West is still concentrating on China's real estate problems, China has moved away from throwing good money after bad by bailing out failing property developers in trouble. As Xi warned, homes are for living, not for speculation and those who speculate should suffer for their own greed. China is moving good money into growth sectors like chips, aviation, infrastructure (not real estate), factory automation and robotics, AI innovation and now military equipment manufacturing.
Having said that, China is not letting up on investments in agriculture, aquaculture and food security. While the world is busy with fighting tariff and trade wars, China is quietly building up its aquaculture and is now the runaway leader in rearing seafood for human consumption. How many are aware of that? China has even been exporting caviar, the much sought after roe delicacy from the sturgeon fish and is killing the traditional exporters from the West. China is now a growing artificial diamond producer, another growth sector. I think I do not have to provide more examples of what goes on behind the scenes, un-noticed while the world is fixated on wars, tariffs and Trump's antics.
China has many avenues for investing in and which have been reaping positive returns successfully.
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