The two countries have signed a long-term agreement worth billions of dollars.
It has been in the works since 2016, and is now being dubbed as a “comprehensive strategic partnership”.
A deal signed between China and Iran is expected to boost their longstanding economic and political alliance.
The cooperation will cover a wide range of Chinese investments in Iran’s most important sectors, including energy and infrastructure.
It is the first long-term agreement of its type to be signed by Iran with a leading world power.
It also comes at a tough time for Iran’s economy that has been devastated by United States sanctions.
The pact was signed in Iran’s capital, Tehran, on March 27, coinciding with the 50th anniversary of the establishment of diplomatic relations between China and Iran.
But in a volatile region, what do both countries stand to gain? And should people in the Middle East and beyond be worried?