China had long tried to come to terms with the Houthi rebel group. But Beijing is now apparently losing patience with the Iran-backed Shiite Muslim militia, which has been waging a civil war in Yemen since 2014 and controls large parts of the conflict-torn country.
The Houthis have carried out attacks on Israeli-linked cargo ships in the Red Sea in recent weeks.
Citing Iranian sources, Portal reported that Chinese officials had asked their Iranian counterparts to help curb attacks on ships in the key waterway or risk jeopardizing business ties with Beijing.
“Essentially China is saying, ‘If our interests are affected in any way, it will affect our business with Tehran. So ask the Houthis to exercise restraint,'” an Iranian official briefed on the talks, who did not want to be named, told the news agency.
China demands safe passage for ships
In a speech at the World Economic Forum in Davos last week, Chinese Premier Li Qiang emphasized the need to keep global supply chains “stable and smooth,” without specifically referring to the Red Sea.
Beijing has also appealed to the Houthis to stop attacks on merchant ships.
Why are shipping companies discontinuing routes in the Red Sea?
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“We call for an end to the harassment of civilian ships to maintain the smooth running of global production and supply chains and the international trade order,” said Foreign Ministry spokesman Mao Ning.
She added that the top priority is to end the war in Gaza as quickly as possible to prevent it from spreading or even getting out of control.
The Ministry of Commerce in Beijing also called on actors in the region to “restore and ensure the security of waterways in the Red Sea.”
Unlike the United States and Britain, which have launched airstrikes against the group, China has so far refrained from any military engagement against the Houthis.
The Houthis have also said that Russian and Chinese ships transiting the Red Sea will be granted safe passage. She justified the move by saying that ships from China and Russia are not involved in delivering supplies to Israel.
But even if Chinese ships are not directly affected, the Houthi attacks pose a major challenge to Beijing's interests. A large proportion of Chinese exports are handled by foreign ships, and around 60% of all Chinese exports to Europe also pass through, according to the Middle think tank East Institute the Red Sea and the Suez Canal.
The volatile security situation in the region has already forced several shipping companies to abandon the Red Sea and take the longer and more expensive route around the Cape of Good Hope in South Africa, exacerbating global supply chain problems.
Houthi attacks have a huge economic impact
The Houthis' actions have enormous economic impacts on China, said Johann Fuhrmann, head of the Konrad Adenauer Foundation's office in Beijing.
“Beijing faces enormous challenges when it comes to supply chains and global trade. Not only is the route around the Cape of Good Hope becoming longer and more expensive, container prices are also rising rapidly,” he told DW.
“All of this comes at a time when China is focusing heavily on boosting exports – as the country’s real estate crisis has shown that there will no longer be a real estate-based economic boom,” Fuhrmann added.
US and UK launch new attacks on Houthis in Yemen
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Nora Kürzdörfer, China expert at the German Institute for Global and Area Studies in Hamburg, also pointed out China's high dependence on energy supplies from the Middle East and Africa.
“Despite the fact that Chinese ships have not yet been attacked, Chinese exporters are facing increased transportation costs and insurance premiums.”
According to several estimates, the cost of shipping a container to Europe has more than doubled, to around $7,000 (€6,443), since the Houthis began attacks on cargo ships in December.
Beijing is showing political restraint
Nevertheless, China has so far exercised political and military restraint in order not to endanger its economic and diplomatic interests in the region.
Beijing traditionally pursues a policy of non-interference and emphasizes national sovereignty, said Kürzdörfer. However, this does not mean that China is not pursuing its political interests, she added.
Beijing, for example, is using the current situation to make it clear that the USA shares responsibility for the prevailing instability, emphasized Kürzdörfer. “It also strengthens partnerships with local partners and allies such as Iran.”
Furhmann said Beijing's political goal is generally to establish itself as a new power in the region, as demonstrated last year when China brokered a rapprochement between two major Middle East rivals, Saudi Arabia and Iran.
Expert: Houthis are undeterred by attacks
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At the same time, the Chinese government has repeatedly emphasized the sovereignty of other states and presented itself as a force for peace, he emphasized.
“Beijing has said that the military intervention by the United States and its allies is destabilizing not only Yemen but the entire region.”
In general, China sees itself as a champion of the global south, said Furhmann. “The expressed solidarity with the Palestinians also fits in with this.”
In late November, the Chinese government unveiled a policy paper on the war in Gaza, calling for a “comprehensive ceasefire and an end to the fighting,” “effective protection of civilians” and humanitarian assistance for people in a tiny coastal enclave.
There was no mention in the newspaper of the Hamas terrorist attacks in Israel on October 7, in which around 1,200 people, mostly civilians, were killed and over 200 people were taken hostage.
Hamas is classified as a terrorist organization by Germany, the USA, the EU and some other countries, but not by China.
Concerns about being too close to the US
“In this respect, it is remarkable that Israel generally maintains good relations with China, but is also perceived there as an ally of the USA,” said Fuhrmann.
Kürzdörfer takes a similar view. “While China maintains its trade relations with Israel, it tends to side with the Palestinians rhetorically and diplomatically and also to act as a counterweight to the US,” she said.
However, practical considerations also play a role for Beijing, she added. “China also advocates for a quick end to the Gaza war to prevent further escalation of the situation in the Red Sea.”
Houthi attacks: escalation in the Middle East?
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Fuhrmann said Beijing has comparatively little military operational experience abroad, which is probably one of the reasons for its reluctance.
“Instead, people prefer to watch other states conduct their military operations from the sidelines and then criticize them. Whether this bill will hold up in the long term, however, remains to be seen.”
“Decoding China” is a DW series that examines Chinese positions and arguments on current international issues from a critical German and European perspective.
This article was originally written in German.