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American Focus > Blog > Economy > What China thinks about the escalating Iran-Israel conflict
Economy

What China thinks about the escalating Iran-Israel conflict

Last updated: June 23, 2025 2:30 am
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What China thinks about the escalating Iran-Israel conflict
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The recent tensions in the Middle East have not dampened Chinese business optimism about opportunities in the region. Chinese shipments to Dubai’s logistics hub have increased by 20% this month compared to last year, with locals stocking up on batteries and daily necessities. This positive outlook is attributed to the Middle East’s emergence as a fast-growing market in recent years.

Chinese companies have been increasingly looking towards the Middle East for various opportunities, such as raising funds from local investors and exploring the electric car market, especially amidst trade tensions with the United States. Additionally, Beijing played a role in facilitating the restoration of diplomatic relations between Riyadh and Tehran in 2023.

Despite the current tensions between Iran and Israel, Chinese business manager Bear Huo remains optimistic that the situation will de-escalate soon. He pointed out that the recent U.S. strikes have targeted specific strategic sites, and the conflict is not as widespread as other conflicts like the one between Russia and Ukraine. However, risks remain elevated as the Dubai port is situated across the Strait of Hormuz from Iran.

Huo highlighted that there have been disruptions in shipping and air travel, with products from Chinese sellers arriving in Dubai. However, due to sanctions, his company does not engage in direct business with Iran. The Chinese Ministry of Foreign Affairs has condemned the U.S. attacks on Iran and called for a ceasefire among all parties involved.

China’s trade with Iran has declined in the past two years, as the U.S.-sanctioned crude exporter heavily relied on Beijing’s purchases. Beijing aims to maintain stability in the Middle East for its economic and strategic interests. Chinese businesses are expected to approach Iran cautiously due to concerns about potential secondary sanctions.

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Chinese citizens have been evacuated from Iran following the recent escalation, with many expressing gratitude for Beijing’s efforts. Despite strict travel warnings for U.S. citizens visiting Iran, Chinese nationals have been able to travel visa-free for tourism or business purposes. Most Chinese citizens in Iran have been safely evacuated.

Looking ahead, if the current tensions lead to a relaxation of U.S. sanctions on Iran, thousands of Chinese businesses could rush to invest in Iran’s tourism, real estate, and infrastructure sectors. Qin Gang, a Beijing-based consultant, believes that such a scenario could open up new opportunities for Chinese businesses in the Middle East. Gang mentioned his visit to Iran in 2013 and highlighted the potential for further collaborations between Chinese and Iranian companies.

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