China Warns Iran Over Houthi Attacks in Red Sea, Highlights Economic Impact and Trade Relations

Chinese authorities have reportedly asked Iranian officials to help in curbing attacks on ships in the Red Sea by the Iran-backed Houthis. According to four Iranian sources and a diplomat familiar with the matter, discussions on these attacks and trade relations between China and Iran occurred during recent meetings in Beijing and Tehran. The talks emphasized the potential impact on business relations if the attacks continue, with China expressing concerns about the disruption of the key trade route between Asia and Europe.

The Houthis claim that their attacks are in support of Palestinians in Gaza, but these actions have led to increased shipping costs and insurance rates, affecting a route widely used by Chinese ships. While China did not make explicit threats, Iranian sources revealed that Beijing warned Tehran of potential consequences if Houthi attacks harmed Chinese interests. However, no specific details or threats regarding the impact on trade relations were disclosed by Chinese officials.

Despite being Iran’s largest trading partner, the trade relationship is imbalanced, with Chinese oil refiners purchasing over 90% of Iran’s crude exports. In contrast, Iranian oil constitutes only 10% of China’s crude imports, allowing China flexibility in sourcing from other suppliers. China emphasized its disappointment with Tehran if any vessels linked to China were targeted, but the discussions acknowledged Iran’s regional alliances and priorities, including proxies in Gaza, Lebanon, Syria, Iraq, and the Houthi rebels in Yemen.

In response to inquiries about the discussions, China’s Ministry of Foreign Affairs highlighted its commitment to promoting regional security, stability, and common development. The Iranian Foreign Ministry was not immediately available for comment.

Recent military strikes by U.S. and British forces against Houthi targets in Yemen failed to halt the attacks on shipping. The U.S. has reportedly urged China to use its influence with Iran to restrain the Houthis. However, analysts suggest that China has been hesitant to leverage its influence, possibly due to its preference for U.S. involvement in securing freedom of navigation in the Red Sea.

The situation underscores the delicate balance between China’s economic interests, Iran’s regional priorities, and the complex geopolitical dynamics in the Middle East. The stakes are high for Iran, as China’s investment is crucial for sustaining its oil sector and economic stability. While China wields influence, Tehran’s decisions are influenced by various factors, and the outcome of discussions with China remains uncertain.

Also Read: PM Modi and Republic Day Chief Guest Macron Engage in Massive Roadshow in Jaipur, Key Highlights