China alone accounted for about 30% of Iran’s total foreign trade during the first eight months of the current Iranian year (March 21-Nov. 21).
Iran and China traded 23.03 million tons of goods worth $20.2 billion during the period, according to the spokesperson of the Islamic Republic of Iran Customs Administration.
Iran’s exports to China reached 20.27 million tons worth $10.4 billion, registering a 1.06% and 1.2% rise in weight and value respectively, compared with the corresponding period of last year, Morteza Emadi also told IRIB News.
The exports mainly included petrochemical products, nuts, leather, saffron and alloys, he added.
Imports from China stood at 2.75 million tons worth $9.8 billion during the same period with industrial equipment, home appliances, X-ray machine parts, paper, cardboard and dental units being the main imports, he added.
Iran’s total trade during the period stood at 93.8 million tons worth $69.48 billion to register a 10% rise in term of value compared with the corresponding period of last year, Emadi had said earlier.
Exports hit 70.4 million tons worth $32.36 billion during the period, registering a 16% decline in terms of weight, but a 4.44% rise in value.
Liquefied propane, methanol, liquefied butane, polyethylene, petroleum bitumen, urea, liquefied natural gas, iron and steel ingots, and light oils were the main goods exported during the period.
China was the biggest export destination followed by Iraq, the UAE, Turkey and India in the descending order.
Total imports stood at 23.4 million worth $37.11 billion during the period, registering a 12.44% fall in terms of weight, but a 15.25% rise in value.
Corn, rice, wheat, soybeans, sunflower oil, cellphones, flour and unrefined sugar were the main imported products.
The UAE, China, Turkey, India and Germany were the top five exporters to Iran during the period in a descending order.
High-Level Meeting Highlights Comprehensive Cooperation,
China views its ties with Iran from a strategic perspective and will not waver in its determination to develop their comprehensive strategic partnership, said Chinese Vice Premier Hu Chunhua when meeting with Iranian President Ebrahim Raisi in Iran's capital Tehran on Tuesday.
Given that the meeting highlighted the consensus on deepening bilateral relations and comprehensive cooperation, Chinese observers said it could effectively help dispel some noises that are trying to drive a wedge between the two countries, Global Times reported.
During the meeting, Hu said China views its ties with Iran from a strategic perspective and will not waver in its determination to develop their comprehensive strategic partnership, noting that China firmly supports Iran in opposing external interference and safeguarding its sovereignty, territorial integrity and national dignity, according to the Xinhua News Agency.
China, he said, stands ready to work with Iran to earnestly implement the important consensus reached by the two heads of state, make joint efforts to advance the implementation of the China-Iran comprehensive cooperation plan, and push for new progress in bilateral practical cooperation.
Hu conveyed Chinese President Xi Jinping's cordial greetings and best wishes to Raisi, and briefed the Iranian president on the major achievements and far-reaching significance of the 20th National Congress of the Communist Party of China held in October.
Xi and Raisi had a phone conversation in July and held a meeting in September, in which they reached important consensus on deepening China-Iran relations.
For his part, Raisi said Iran and China enjoy a traditional friendship and bilateral ties are of important strategic significance.
“No matter how the international and regional landscapes change, Iran will remain firmly committed to deepening the comprehensive strategic partnership between the two countries,” he added.
The Iranian president noted that Iran, which has always been a trustworthy partner of China, stands ready to firmly support each other on issues concerning each other's core interests and major concerns, actively implement the bilateral comprehensive cooperation plan, continuously boost all-round cooperation and deliver more cooperation outcomes.
In March 2021, China and Iran signed a major 25-year agreement to enhance comprehensive cooperation in a range of fields, including trade. Chinese State Councilor and Foreign Minister Wang Yi has said that under the deal, the two sides would tap the potentials in economic and cultural cooperation, and make plans for long-term cooperation, according to Xinhua.
“Hu’s visit will undoubtedly further push forward bilateral ties and boost comprehensive cooperation,” Qian Feng, director of the Research Department at the National Strategy Institute at Tsinghua University, told Global Times on Wednesday.
The official said that since the signing of the 25-year deal, China-Iran ties have entered a new stage of development, and the two countries have been making steady progress in economic and trade cooperation.
Also, in September, China congratulated Iran on its upcoming full membership of the Shanghai Cooperation Organization, and expressed its willingness to strengthen coordination and cooperation within the SCO framework.
The meeting between Hu and Raisi came after Xi concluded his trip on Saturday after attending the first China-Arab States Summit and the China-[Persian] Gulf Cooperation Council Summit and paying a state visit to Saudi Arabia.
The series of high-level visits to the region reflect that China is determined to develop a good relationship with Middle Eastern powers, including Iran and Saudi Arabia.
“While recognizing that the situation in the region is complicated, China is trying to play the role of an active contributor to regional peace,” Qian said.
Can China Continue to Balance Between Saudi Arabia and Iran?
The Chines president’s visit to Saudi Arabia sent powerful signals that Sino-Saudi ties are entering a new period of rapid development.
For China’s other Persian Gulf partner, Iran, the strengthening of ties could mean a distinct disadvantage for Tehran in its protracted rivalry with Saudi Arabia, reads an article published by The Diplomat. Excerpts follow:
China’s relationships with Saudi Arabia and Iran are complicated. China’s leadership has to carefully manage its relations with both to maintain its neutrality and protect its own economic, political and security interests.
Every few years, Beijing goes on a diplomatic mission in the Persian Gulf, sparking speculation from observers that China is favoring one side over the other in the Saudi-Iran dispute.
Although China maintains close relations with both countries, Saudi Arabia has emerged as one of Beijing’s leading strategic partners in the region in recent years. Xi’s December visit to Riyadh is again generating speculation that Beijing’s actions could offset a careful diplomatic balancing act Chinese officials have maintained with both sides.
Beijing has worked tirelessly to stay out of the fray of the Persian Gulf rivalry. The challenge, however, is that any advantage provided to one side – for instance, rumors of a $4 billion Saudi purchase of Chinese defense equipment – could be perceived by the other as a disadvantage. To avoid the perception of privileging Tehran or Riyadh, China has actively pursued a policy of equivalency in its diplomatic engagements and military cooperation.
For instance, in 2016, Xi signed comprehensive strategic partnership agreements with both Saudi Arabia and Iran, within weeks of each other. In both 2017 and 2019, Beijing held separate military drills with Iran and Saudi Arabia, spaced only a few weeks apart, to avoid conveying the wrong message. And, as Xi concluded his Saudi Arabia trip on Dec. 10, China’s ambassador to Tehran announced Chinese Vice Premier Hu Chunhua would visit Tehran on Dec. 12.
Despite Beijing’s level of care and a tacit tolerance for its relations with the other side, both Iran and Saudi Arabia have expressed frustration with China over its dealings with the other.
Following Xi’s trip to Saudi Arabia, Iran’s deputy foreign minister for the Asia-Pacific summoned China’s ambassador to Iran in a rare show of protest on Dec. 12. Tehran wanted to express dissatisfaction over Beijing’s joint statement with [P]GCC nations, highlighting statements of support to the council regarding disputed islands in the Straits of Hormuz that Iran found concerning.
In 2021, Saudi officials expressed similar concern over China’s 25-year agreement with Tehran. The ambitious partnership set off red flags in Saudi Arabia, prompting Saudi officials to attempt to discourage Beijing from stronger ties with Iran.
Balancing Act
Beijing’s balancing act, while not perfect, is reinforced by strong economic ties with both countries and bilateral trust, which has been cultivated between China and both countries over the past decade. This trust has been key in allowing Beijing to weather the occasional diplomatic foible and course correct when Tehran or Riyadh raise a complaint.
The question remains whether China’s more aggressive [P]GCC outreach this month is a temporary swing of the pendulum from Iran toward Saudi Arabia or a new pro-Saudi status quo. The former is more likely than the latter.
Saudi Arabia and the broader (P)GCC may be a near-term geopolitical priority for Chinese officials due to the immediate benefits of deepened ties with Saudi Arabia and Iran’s present domestic challenges. China increasingly prefers predictable, stable and high-return investments. Beijing’s economic ties, investment and energy ties with Riyadh have produced significant gains with limited risks in the past two years.
Iran, meanwhile, has not yielded such gains for Chinese investors in the short term. Chinese businesses in Iran remain bogged down with concerns over the risk of triggering US sanctions.
Meanwhile, a lack of progress in negotiations over a new nuclear deal with Iran has delayed any benefits of Beijing’s $400 billion agreement with Tehran. This is to be expected, given Beijing and Tehran’s strategic cooperation roadmap has a timeline of 25 years, compared to just five years with Saudi Arabia. For China, its Iran partnership is a strategic waiting game, which requires extensive diplomatic attention over the long run.
Beijing’s next steps following Xi’s visit will likely aim to reassure Iran of China’s neutrality and signal equivalency in the relationship. This strategy will follow a familiar pattern. First, China will deploy a senior-level official to Tehran to reinforce its neutrality in the Iran-Saudi Arabia rivalry and emphasize China’s longstanding policy of non-interference. Then, Beijing will engage in careful diplomacy to communicate with both countries to prevent further escalation with Iran while avoiding the impression of backstepping with the [P]GCC.
While a vice premier is on the docket for an in-person Iran visit, the recent Iranian opposition to China’s joint statement with the council may likely require higher-level Chinese engagement, maybe even a head of state call.
China will continue to deepen relations with both Tehran and Riyadh while remaining above the fray in the protracted Iran-Saudi Arabia rivalry. However, its increasing economic engagements with Saudi Arabia, the (P)GCC and the broader Arab world are putting pressure on Iran.
From Tehran’s point of view, the strengthening of Sino-Saudi ties provides Saudi Arabia a net advantage, while disadvantaging Iran’s pursuit of international legitimacy. This has the potential to affect China’s own interests in the Persian Gulf, if it does not restore its diplomatic balance.
