Edited by Deepali Verma
Discussions on Houthi attacks and China-Iran trade took place at several recent meetings in Beijing and Tehran, revealed the Iranian sources, refusing to provide details about the venue of meetings and participants.
“Basically, China is of the view that if their interests are harmed in any way, it will impact business with Tehran. So tell the Houthis to show restraint’,” remarked one Iranian official, who conversed with Reuters on condition of anonymity.
The attacks, which the Houthis claim are in support of Palestinians in Gaza, have raised the cost of shipping and insurance by causing disruption in a key trade route between Asia and Europe that is used widely by ships from China.
However, the Chinese officials hadn’t made any particular comments or threats about how Beijing’s trading relationship with Iran could be affected provided its interests were damaged by Houthi attacks, as per the four Iranian sources.
Though China has been Iran’s largest trading partner for the last decade, their trade relationship is lopsided. Chinese oil refiners bought over 90% of Iran’s crude exports the previous year, as per the tanker tracking data from trade analytics firm Kpler. The US sanctions distanced other customers away while the Chinese firms profited from heavy discounts. Iranian oil, though, only accounts for 10% of China’s crude imports.
The Iranian sources said that Beijing had made it explicit that it would be very disappointed with Tehran if any vessels linked to China got hit, or the country’s interests were hampered in any way.
But while China had immense significance to Iran, Tehran also has developed proxies in Gaza, Lebanon, Syria and Iraq, besides the Houthis in Yemen, and its regional alliances and priorities are key in its decision making, as informed by one of the Iranian insiders.
When asked for comments about meetings with Iran and to discuss the Red Sea attacks, China’s ministry of foreign affairs said, “China, a sincere and responsible friend of the countries of the Middle East, is committed to ensuring regional security and stability and seeking common development and prosperity.”
“We stand in complete support of Middle Eastern countries in strengthening their strategic independence and uniting and collaborating to solve their regional security issues,” it told Reuters.
