Skip to main content
Log in

Cutting Both Ways: The Transfer of Chinese Technology to Iran in the Post-JCPOA Headwind

  • Manuscript
  • Published:
East Asia Aims and scope Submit manuscript

Abstract

After the Trump administration tossed aside the nuclear deal in May 2018, many Chinese businesses had to reconsider their policy of technology transfer to Iran pretty similar to the way that technological relationship involving the Middle Eastern country and its major Western and Eastern partners underwent significant changes upon the comeback of the crippling regime of international sanctions against Tehran. Unlike their more sophisticated and resourceful rivals that almost terminated their teetering technological connections with the Iranians, however, the Chinese experienced a new situation concerning the nature and size of their transfer of technology to the Persian Gulf country after the Americans shunned away from the landmark nuclear deal. On one side, a lot of Chinese companies also abandoned their ongoing or prospective business projects in Iran, refusing to share their technology and technical knowhow with Iran in direct and formal ways. On the other side, a number of important economic sectors in Iran became increasingly dependent on Chinese technology, and the whole process brought some unprecedented dynamics to the Mideast country’s indirect and informal patterns of technological partnership with the East Asian power. The present study tries to shed some light on such critical developments involving China and Iran in the wake of Washington’s unilateral withdrawal from the nuclear agreement.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Aftab Eghtesadi (2021). Jedal bar sar brandhay korei bala geregt [Kerfuffle intensified over Korean brands], 17 November 2021, p. 1.

  2. Aftab Yazd (2022). Vabastegi internet Iran be chin [Iran’s internet dependency on China], 24 January 2022, p. 1.

    Google Scholar 

  3. Azad, S (2022). Perks and perils of strategic choice: South Korea’s Iran policy under Moon Jae-in. East Asia, 39(4), 371–387. https://doi.org/10.1007/s12140-022-09387-0.

    Article  Google Scholar 

  4. Azad, S. (2022). Korea’s economic presence in Iran under Trump and its prospects during the Biden presidency. World Economy Brief, 12(39), 1–12. https://doi.org/10.2139/ssrn.4273340.

    Article  Google Scholar 

  5. Azad, S. (2022). Looking-East in the Iranian foreign policy: The politico-ideological inclinations and practical imperatives. Journal of Globalization Studies, 13(2), 53–75. https://doi.org/10.30884/jogs/2022.02.04.

    Article  Google Scholar 

  6. Azad, S. (2023). Bargain and barter: China’s oil trade with Iran. Middle East Policy, 30(1), 23–35. https://doi.org/10.1111/mepo.12669.

    Article  Google Scholar 

  7. de Bruijn, E. J., and Jia, X. (1993). Transferring technology to China by means of joint ventures. Research-Technology Management, 36(1), 17–22. https://doi.org/10.1080/08956308.1993.11670872.

    Article  Google Scholar 

  8. Carrillo, P. (1996). Technology transfer on joint venture projects in developing countries. Construction Management and Economics, 14(1), 45–54. https://doi.org/10.1080/01446199600000006.

    Article  Google Scholar 

  9. Cho, D., and Shenkoya, T. (2020). Technology transfer: Economic factors that influence transferor and transferee’s choice. Technology Analysis & Strategic Management, 32(6), 621–633. https://doi.org/10.1080/09537325.2019.1687873.

    Article  Google Scholar 

  10. Cohen, H., Keller, S., and Streeter, D. (1979). The transfer of technology from research to development. Research Management, 22(3), 11–17. https://doi.org/10.1080/00345334.1979.11756535.

    Article  Google Scholar 

  11. Davis, S., and Ness, I. (2021). Introduction: Why are economic sanctions a form of war? In Davis, S., and Ness, I. (Eds.), Sanctions as war: Anti-imperialist perspectives on American geo-economic strategy (pp. 1–24). Leiden and Boston: Brill.

    Google Scholar 

  12. Eghtesad Online (2019). Be gooshihay chini etemad konim ya na? [Should we trust Chinese mobiles or not?], 6 August 2019 [Online] https://www.eghtesadonline.com/n/1qTH (23 November 2022).

  13. Eghtesad Saramad (2021). Lavazem khanegi irani, jaygozin khareji mishavad [Iranian home appliances replace foreign ones], 24 November 2021, p. 2.

    Google Scholar 

  14. Eghtesad-e Mardom (2021). Kalahay chini be esm kore forookhte mishavad [Chinese goods sold in the name of Korean], 5 December 2021, p. 6.

    Google Scholar 

  15. Ellis, J. D. (2001). Defense by other means: The politics of US-NIS threat reduction and nuclear security cooperation. Westport, CT: Praeger Security International.

    Google Scholar 

  16. Ensaf News (2022). Dar bazaar mobile Aladdin va Charsou che khabar hast? [What is going on in Aladdin and Charsou mobile market?], 15 January 2022 [Online] http://www.ensafnews.com/325249/ (23 November 2022).

  17. Eqtesad Ayandeh (2021). Tamam zarfiyathay sakht maskan ra darim; chiniha faghat danesh fanni bedahand [We have all capacities for housing construction; only need Chinese technical knowledge], 3 November 2021, p. 3.

  18. Fagan, M. H. (2001). Global information technology transfer: A framework for analysis. Journal of Global Information Technology Management, 4(3), 5–26. https://doi.org/10.1080/1097198X.2001.10856305.

    Article  Google Scholar 

  19. Falker, G. B., and Weiss, C., Jr. (1995). An analytic framework for measuring technological development. In Simon, D. F. (Ed.), The Emerging Technological Trajectory of the Pacific Rim (pp. 385–400). Armonk, NY: M.E. Sharpe.

    Google Scholar 

  20. Fisher, R. D., Jr. (2008). China’s military modernization: Building for regional and global reach. Westport, CT: Praeger Security International.

    Google Scholar 

  21. Ghosh, B. (2022). Iran is crushing what’s left of internet freedom. Bloomberg, 3 January 2022 [Online] https://www.bloomberg.com/opinion/articles/2022-01-03/iran-is-crushing-what-s-left-of-internet-freedom (21 May 2022).

  22. Gill, B. (2007). Rising star: China’s new security diplomacy. Washington, DC: Brookings Institution Press.

    Google Scholar 

  23. Grajewski, N. (2022). An illusory entente: The myth of a Russia–China–Iran ‘axis’. Asian Affairs, 53(1), 164–183. https://doi.org/10.1080/03068374.2022.2029076.

    Article  Google Scholar 

  24. Hawes, C. (2021). Why is Huawei’s ownership so strange? A case study of the Chinese corporate and socio-political ecosystem. Journal of Corporate Law Studies, 21(1), 1–38. https://doi.org/10.1080/14735970.2020.1809161.

    Article  Google Scholar 

  25. Inkster, N. (2019). The Huawei affair and China’s technology ambitions. Survival, 61(1), 105–111. https://doi.org/10.1080/00396338.2019.1568041.

    Article  Google Scholar 

  26. IRNA (2021). Five major opportunities provided by Iran–China long-term cooperation. 6 April 2021 [Online] https://en.irna.ir/news/84285870/Five-major-opportunities-provided-by-Iran-China-long-term-cooperation (15 May 2022).

  27. Jalili, S. (2020). Iran sanctions threaten Samsung and LG’s grip on local market. Nikkei Asia, 21 February 2020 [Online] https://asia.nikkei.com/Spotlight/Iran-tensions/Iran-sanctions-threaten-Samsung-and-LG-s-grip-on-local-market (23 November 2022).

  28. Kairouz, A. (2007). Nuclear Iran: A prelude to WW III. Bloomington, IN: AuthorHouse.

    Google Scholar 

  29. Kapur, D. (2001). Diasporas and technology transfer. Journal of Human Development, 2(2), 265–286. https://doi.org/10.1080/14649880120067284.

    Article  Google Scholar 

  30. Karimov, F. (2015). Iran, largest foreign market for Huawei phones. Trend News Agency, 13 June 2015 [Online] https://en.trend.az/iran/business/2405663.html (23 November 2022).

  31. Kharpal, A. (2022). Apple reclaims no. 1 spot in China, hits record iPhone market share in the fourth quarter. CNBC, 27 January 2022 [Online] https://www.cnbc.com/2022/01/27/apple-china-iphone-maker-hits-record-market-share-claims-nopoint1-spot.html (23 November 2022).

  32. Lau, S. (1997). Technology transfer in East Asia and its implications for regional cooperation. Global Economic Review, 26(4), 65–88. https://doi.org/10.1080/12265089708422881.

    Article  Google Scholar 

  33. Li, A. (2016). Technology transfer in China–Africa relation: Myth or reality. Transnational Corporations Review, 8(3), 183–195. https://doi.org/10.1080/19186444.2016.1233718.

    Article  Google Scholar 

  34. Li, R., and Cheong, K. (2017). Huawei and ZTE in Malaysia: The localisation of Chinese transnational enterprises. Journal of Contemporary Asia, 47(5), 752–773. https://doi.org/10.1080/00472336.2017.1346697.

    Article  Google Scholar 

  35. Lim, K. (2022). Power, perception, and politics in making of Iranian grand strategy. Cham, Switzerland: Palgrave Macmillan.

    Book  Google Scholar 

  36. Liu, T., and Woo W. T. (2018). Understanding the U.S.–China trade war. China Economic Journal, 11(3), 319–340. https://doi.org/10.1080/17538963.2018.1516256.

    Article  Google Scholar 

  37. MacKinnon, R. (2011). Liberation technology: China’s ‘networked authoritarianism’. Journal of Democracy, 22(2), 32–46. https://doi.org/10.1353/jod.2011.0033.

    Article  Google Scholar 

  38. Mardom Salari (2021). 500 hezar mohandes bikar darim, prozheha ra be chiniha midahand! [We have 500,000 unemployed engineers, projects are given to Chinese], 16 October 2021, p. 1.

  39. Mashregh News (2016). Iraniha ra be mobile chini adat midahim [We get Iranians addicted to Chinese mobile], 26 January 2016 [Online] https://www.mashreghnews.ir/news/527768/ (26 November 2022).

  40. McLean, E. V., and Whang, T. (2020). Do sanctions spell disaster? Economic sanctions, political institutions, and technological safety. European Journal of International Relations, 26(3), 767–792. https://doi.org/10.1177/1354066119887422.

    Article  Google Scholar 

  41. Mehr News Agency (2021). MP says LG, Samsung should not be allowed back in Iran. 5 September 2021 [Online] https://en.mehrnews.com/news/178259/MP-says-LG-Samsung-should-not-be-allowed-back-in-Iran (21 May 2022).

  42. Mirrlees, T. (2021). Sanctioning China’s tech industry to ‘secure’ Silicon Valley’s global dominance. In Davis, S., and Ness, I (Eds.). Sanctions as war: Anti-imperialist perspectives on American geo-economic strategy (pp. 105–126). Leiden and Boston: Brill.

    Chapter  Google Scholar 

  43. Nabze Fanavari (2022). Sahm brandhay mobile az bazaar Iran dar Sali ke gozasht: Samsung hamchenan dar sadr [Share of mobile brands from Iran market in the past year: Samsung still leading], 19 March 2022 [Online] https://www.nabzefanavari.ir/0006uR (23 November 2022).

  44. Nau, H. R. (1985). International technology transfer. The Washington Quarterly, 8(1), 57–64. https://doi.org/10.1080/01636608509449903.

    Article  Google Scholar 

  45. Paltemaa, L., and Vuori, J. A. (2009). Regime transition and the Chinese politics of technology: From mass science to the controlled internet. Asian Journal of Political Science, 17(1), 1–23. https://doi.org/10.1080/02185370902767557.

    Article  Google Scholar 

  46. Press TV (2021). Iran reports 85% surge in mobile phone imports y/y in March–August. 18 September 2021 [Online] https://www.presstv.ir/Detail/2021/09/18/666806/Iran-mobile-phone-imports-surge-figures (23 November 2022).

  47. Rogers, E. M. (2002). The nature of technology transfer. Science Communication, 23(3), 323–341. https://doi.org/10.1177/107554700202300307.

    Article  Google Scholar 

  48. Rugge, F. (2018). An ‘axis’ reloaded? In Rugge, F. (Ed.), Confronting an ‘axis of cyber’?: China, Iran, North Korea, Russia in cyberspace (pp. 13–37). Milano, Italy: Ledizioni LediPublishing.

    Google Scholar 

  49. Sahimi, M. (2021). A century of economic blackmail, sanctions and war against Iran. In Davis, S., and Ness, I. (Eds.), Sanctions as war: Anti-imperialist perspectives on American geo-economic strategy (pp. 165–189). Leiden and Boston: Brill.

    Chapter  Google Scholar 

  50. Scita, J. (2022). China–Iran relations through the prism of sanctions. Asian Affairs, 53(1), 87–105. https://doi.org/10.1080/03068374.2022.2029060.

    Article  Google Scholar 

  51. Servat News (2021). Edameh eghbal mardom be kharejiha dar bazaar lavazem khanegi [People still interested in purchasing foreign home appliances], 1 November 2021, p. 2.

  52. Servat News (2021). Vazir rah: Anboohsazan chini fannavari novin sakhtvasaz be Iran miavarand [Road minister: Chinese wholesale makers bring new construction technology to Iran], 13 November 2021, p. 6.

    Google Scholar 

  53. Setareh Sobh Daily (2021). Gharar ast chiniha dar Iran khane besazand! [The Chinese set to build houses in Iran!], 26 October 2021, p. 5.

    Google Scholar 

  54. Sutter, R. G. (2011). Historical dictionary of Chinese foreign policy. Lanham, MD: Scarecrow Press.

    Google Scholar 

  55. Vaisi, G. (2022). The 25-year Iran–China agreement, endangering 2,500 years of heritage. Middle East Institute, 1 March 2022 [Online] https://www.mei.edu/publications/25-year-iran-china-agreement-endangering-2500-years-heritage (15 May 2022).

  56. Wadhams, N. (2022). Russia is now the world’s most-sanctioned nation, surging past Iran, North Korea. Bloomberg, 7 March 2022 [Online] https://www.bloomberg.com/news/articles/2022-03-07/russia-surges-past-iran-to-become-world-s-most-sanctioned-nation (23 May 2022).

  57. Warner, W. T. (1994). International technology transfer and economic espionage. International Journal of Intelligence and CounterIntelligence, 7(2), 143–160. https://doi.org/10.1080/08850609408435243.

    Article  Google Scholar 

  58. White, W. (1977). Effective transfer of technology from research to development. Research Management, 20(3), 30–34. https://doi.org/10.1080/00345334.1977.11756416.

    Article  Google Scholar 

  59. World Nuclear News (2017). China, Iran sign first contract for Arak redesign. 24 April 2017 [Online] https://www.world-nuclear-news.org/NP-China-Iran-sign-first-contract-for-Arak-redesign-2404175.html (12 November 2022).

  60. Xu, Z., and Lin, F. (2021). The political economy of US sanctions against China. In In Davis, S., and Ness, I (Eds.). Sanctions as war: Anti-imperialist perspectives on American geo-economic strategy (pp. 306–320). Leiden and Boston: Brill.

    Chapter  Google Scholar 

  61. Yuan, J. (1996). United States technology transfer policy toward China: Post-Cold War objectives and strategies. International Journal, 51(2), 314–338. https://doi.org/10.1177/002070209605100206.

    Article  Google Scholar 

  62. Yuan, Z. (1995). Reform and restructuring of China’s science and technology system. In Simon, D. F. (Ed.), The Emerging Technological Trajectory of the Pacific Rim (pp. 385–400). Armonk, NY: M.E. Sharpe.

    Google Scholar 

  63. Zanon, F. (2007). EU foreign policy in the Italian parliament: The debates on China and Iran. The International Spectator, 42(4), 551–570. https://doi.org/10.1080/03932720701722936.

    Article  Google Scholar 

  64. Zhang, Y. (2021). ‘Barbarising’ China in American trade war discourse: The assault on Huawei. Third World Quarterly, 42(7), 1436–1454. https://doi.org/10.1080/01436597.2021.1894120.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Shirzad Azad.

Ethics declarations

Competing interests

There is no conflict of interest for this work/article to declare.

Additional information

Publisher’s Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Azad, S. Cutting Both Ways: The Transfer of Chinese Technology to Iran in the Post-JCPOA Headwind. East Asia 41, 91–107 (2024). https://doi.org/10.1007/s12140-023-09419-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12140-023-09419-3

Keywords

Navigation