China's Grip on Iran Sparks Tensions Ahead of US-China Summit
China's significant influence over Iran is set to be a major topic of discussion at the upcoming US-China summit on September 24. According to Chinese Foreign Minister Wang Yi, Beijing and Tehran are 'comprehensive strategic partners,' with China being Iran's largest trading partner and the destination for over 80% of its seaborne oil exports.
The value of Iranian oil exports to China is substantial, with commodities analytics firm Kpler estimating that it exceeds $1.4 billion per year. In return, Beijing has provided significant support to Tehran, including purchasing large quantities of Iranian oil and circumventing US sanctions using a covert, barter-like trade mechanism.
China's role in the Iran conflict is not without controversy, however. The US has repeatedly pressed China to cooperate with sanctions on Iran, but Beijing has thus far refused to comply. As a result, Washington has imposed sanctions on Chinese companies and entities that have purchased Iranian oil, although these measures have had limited impact.
According to Elizabeth Freund Larus, an adjunct senior fellow at the Pacific Forum think tank, China benefits geopolitically from the conflict's toll on US military resources, even though Beijing faces economic pressure from higher energy and raw material costs. The Iran war has cost the Pentagon over $38 billion through August 1, according to the Congressional Budget Office.