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China’s Unofficial Mediation and Economic Stakes in the Iran War

4/25/2026, 4:20:30 AM

China’s Mediation in Iran War

After the U.S.–Israeli strikes on Iran on 28 February, Beijing acted as an unofficial mediator. Foreign Minister Wang Yi made 30 calls with Israel, Saudi Arabia, Bahrain, the UAE and Pakistan, which hosted peace talks. He offered a five-point proposal to end hostilities and reopen the Strait of Hormuz, calling China’s role neutral and respecting the UN Charter.

Economic Stakes & Oil

Iran sends about 90 % of its crude to China, 13 % of China’s seaborne oil intake. Vortexa reports over 160 million barrels of Iranian oil on floating tankers, with at least 140 million beyond the U.S. blockade. China’s 1.2 billion-barrel on-shore reserve. Imports via the Strait of Hormuz fell to 222,000 bpd from 4.45 million bpd, but reserves cover three-to-four months.

Diplomatic Outreach to Gulf

President Xi Jinping urged the Strait of Hormuz to stay open, telling Saudi Crown Prince Mohammed bin Salman that normal navigation serves “the common interests of regional countries and the international community.” He also spoke with UAE Crown Prince Sheikh Khaled bin Zayed Al Nahyan, pledging a “solid, resilient” partnership. Chinese diplomats condemned U.S. and Israeli force and Iranian attacks on civilians.

Official Statements

Beijing’s foreign ministry called the conflict “illegal” and urged de-escalation. Wang Yi warned that force “risks destabilizing the Middle East.” Xi stressed “peaceful coexistence, national sovereignty, the rule of international law.” China abstained from a UN Security Council resolution on Hormuz shipping, saying it was politically biased.

Criticism

U.S. officials accuse China of providing dual-use items and missile-propellant chemicals to Iran, which Beijing denies. President Donald Trump said a Chinese “gift” was intercepted en route to Iran; Chinese foreign ministry called the claim “false.” Analysts note Chinese investment in Iran is below the $400 billion pledged, with only $2-3 billion confirmed.

Conflicts

Sources differ on Chinese military support. Financial-Times reporting cites a Chinese-built spy satellite transferred to Iran, whereas Chinese officials deny weapons transfers. Investment figures range from a promised $400 billion to an actual $2-3 billion, and dual-use shipments remain unverified.

Verbatim Quotes

  • “Trump has said he believes China helped encourage Iran to negotiate the fragile ceasefire thathe has now extended.” — Donald Trump, former U.S. President
  • “George Chen, a partner at The Asia Group consultancy, said China’s role in the Iran situation is irreplaceable.” — George Chen, partner, The Asia Group
  • “A lot of the points are remarkably consistent,” — Hoo Tiang Boon, professor, Nanyang Technological University
  • “The Strait of Hormuz should maintain normal passage, as this serves the common interests of regional countries and the international community,” — Xi Jinping, President of China

What’s Next

Beijing plans to host a China-Arab Summit and finalize a free-trade agreement with Gulf Cooperation Council. Chinese officials have readiness to deepen ties with Saudi Arabia and the UAE, and await a UN-mandated settlement of the Iran war.