Chinese officials have called in Iranian representatives to help contain attacks on ships in the Red Sea. The Iranbacked Houthis were blamed for the attacks. According to four Iranian sources and a wellinformed diplomat, Beijing warned that such actions could jeopardize trade relations with the Asian country.
Secret meetings between China and Iran
According to Iranian sources, discussions on this issue and bilateral trade were recently held at numerous meetings in Beijing and Tehran. As one Iranian politician said: “China is basically saying, 'If our interests are compromised in any way, this will impact our trade with Tehran. So tell the Houthis to exercise restraint'”.
The Houthi attacks, ostensibly in support of Palestinians in Gaza, have increased insurance and transportation costs and disrupted a key trade route between Asia and Europe that is heavily used by Chinese ships.
However, Chinese officials have not commented specifically on how trade relations with Iran might be affected if its interests are threatened by the Houthi attacks, Iranian sources said.
Trade relations between China and Iran
Although China has been Iran's largest trading partner over the past decade, trade relations between the two countries are unbalanced. More than 90% of Iran's crude oil exports went to Chinese oil refineries in 2022, according to tanker tracking data from trade analysis firm Kpler. However, Iranian oil accounts for only 10% of China's crude oil imports.
According to Iranian sources, China expressed disappointment to Tehran that Chinalinked ships would be hit or that the country's interests would be affected in any way. However, Iran's decision will be influenced by its regional alliances and priorities, such as its proxies in Gaza, Lebanon, Syria and Iraq, as well as the Houthis in Yemen.
China's diplomatic position
Responding to questions about the meetings with Iran, China's Foreign Ministry said the country is a “sincere friend of Middle Eastern countries” and is committed to promoting security and stability in the region. Iran's foreign ministry could not immediately be reached for comment.