Editorial
Chinese officials have asked their Iranian counterparts to intervene to stop attacks on shipping in the Red Sea by the Houthis. Otherwise, trade relations with Beijing could deteriorate. The news was reported exclusively by the Reuters agency according to some indiscretions revealed, on condition of anonymity, by Iranian and Chinese diplomats.
China has made it known that its commercial interests are at stake, therefore, it has suggested that Iran warn the Houthis to show restraint.
The attacks, which the Houthis carry out in support of the Palestinian cause in Gaza, have dramatically increased shipping and insurance costs, drastically interrupting the use of a key trade route between Asia and Europe. A route also widely used by Chinese ships.
However, Chinese officials wanted to clarify to Reuters that Iran has not been directly threatened about the repercussions on trade relations. General interests were discussed, including the crisis in the Red Sea. The Iranian sources said Beijing made it clear that it was deeply disappointed in Tehran if China-linked ships were hit or the country's interests were harmed in any way.
Although China has been Iran's largest trading partner for over a decade, their trade exchange is unbalanced. Chinese oil refiners purchased more than 90% of Iran's crude exports last year, while Iranian oil accounts for only 10% of China's crude imports.
However, while China is important to Iran, Tehran also has strong ties to Gaza, Lebanon, Syria, Iraq and the Houthis in Yemen. These regional alliances and priorities play a critical role in future Iranian decisions.
China has a lot of influence on Iran thanks to its important oil purchases and its interest in future investments. However, so far, China has been reluctant to use such influence for a variety of geopolitical reasons that go beyond the Houthi issue.
We will see what happens also because there is uncertainty about how Iran will respond to China's requests because Beijing is one of the few sources of investments that Iran desperately needs. Therefore the Middle Eastern country may find itself in a delicate position in trying to balance Chinese demands with its own regional priorities and alliances.
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