BEIJING, CH – China has reportedly urged Iran to control the Houthi attacks on ships in the Red Sea, as it could negatively affect their trade relations, according to four Iranian sources and a diplomat with knowledge of the situation.
The dialogue regarding the attacks and trade between the two nations occurred during several recent meetings in Beijing and Tehran. The Chinese officials expressed their concerns about any potential harm to their interests, which could impact their business dealings with Tehran.
The Houthi attacks, which are claimed to be in support of Palestinians in Gaza, have escalated shipping and insurance costs by disrupting a significant trade route between Asia and Europe, frequently used by Chinese ships. However, the Chinese officials did not specify how their trading relationship with Iran might be affected if their interests were compromised by the Houthi attacks.
China has been Iran’s largest trading partner for the past decade, with the trade relationship being somewhat one-sided. For instance, Chinese oil refiners purchased over 90% of Iran’s crude exports last year, as per trade analytics firm Kpler’s tanker tracking data.
However, Iranian oil only makes up 10% of China’s crude imports. If necessary, Beijing could resort to other suppliers to fill any potential shortfalls. The Iranian sources indicated that Beijing would be highly displeased if any China-linked vessels were hit, or if the country’s interests were compromised in any way.
Despite the significance of China to Iran, Tehran also has proxies in Gaza, Lebanon, Syria, Iraq, and Yemen, and its regional alliances and priorities heavily influence its decision-making process.