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China presses Iran to curb Red Sea attacks for trade relations

Chinese authorities have reportedly urged Iran to control the Red Sea attacks by Iran-supported Houthis, warning of potential damage to business ties with Beijing, according to four Iranian sources and a diplomat. The discussions on the attacks and China-Iran trade occurred in recent meetings in Beijing and Tehran.

An anonymous Iranian official stated, "China says: 'If our interests are harmed in any way, it will impact our business with Tehran. So tell the Houthis to show restraint'." However, Chinese officials did not specify how Beijing's trade relationship with Iran would be affected if its interests were harmed by Houthi attacks.

While China has been Iran’s largest trading partner over the past decade, their trade relationship is uneven. Chinese oil refiners purchased over 90 percent of Iran’s crude exports last year, due to US sanctions and heavy discounts offered to Chinese firms. Conversely, Iranian oil only accounts for 10% of China’s crude imports.

Despite the importance of China to Iran, Tehran's regional alliances and priorities, including proxies in Gaza, Lebanon, Syria, Iraq and Yemen, significantly influence its decision-making processes.


Publication date: Fri 26 Jan 2024 Freshplaza

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