Iran and China have reportedly agreed to improve the flow of letters of credit (L/Cs) between the two countries.

The semi-official Tasnim news agency reported that the L/C agreement was signed during the 15th Session of the Iran-China Joint Economic Cooperation Commission.

Economic ties

Iran's minister of industries, mines and trade, Mohammad Reza Nematzadeh, said that the L/C deal was part of a more comprehensive cooperation agreement signed at a meeting in Tehran by a visiting Chinese trade delegation and their Iranian counterparts.

Nematzadeh added that he expected increased L/Cs flow between the two countries would help forge stronger economic ties and enhance trading links.

Iran is also anticipating increased foreign direct investment from China according to the Iranian minister.

Business links

Iran and China appear intent on improving trade and investment links.

In February, Iranian minister of economic affairs and finance, Ali Tayyebnia, and his visiting Chinese counterpart, Gao Hucheng, signed a memorandum of understanding to increase the two countries' annual non-oil trade to US$20 billion.

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