Key facts
- China is Iran's largest trading partner and takes over 80% of its seaborne oil exports.
- China and Iran are described as "comprehensive strategic partners."
- The US-China summit is scheduled for September 24 at the White House.
- China's purchase of Iranian oil occurs via a covert, barter-like trade mechanism to evade US sanctions.
- US Treasury Secretary Scott Bessent warned those enabling Tehran against testing Washington.
- China denies supporting Iran militarily or providing intelligence.
Ahead of a planned US-China summit on September 24, China's significant trade relationship with Iran, particularly its role as the primary buyer of Iranian oil, is emerging as a key geopolitical factor. Beijing's foreign minister, Wang Yi, met with his Iranian counterpart, Abbas Araghch, on September 16, emphasizing their "comprehensive strategic partners" status. China imports over 80 percent of Iran's seaborne oil, though this constitutes only 1 percent of China's global trade.
While China officially maintains neutrality in the Iran war, its substantial oil purchases provide an economic lifeline to Tehran, circumventing US sanctions through covert, barter-like transactions. US Treasury Secretary Scott Bessent has warned that those enabling Iran face consequences. The US has options to compel greater cooperation, including blacklisting Chinese refineries and shipping firms, but broader sanctions on Chinese financial institutions could disrupt the US economy as well.
China's stance is partly based on its interpretation of international law, asserting that normal trade between China and Iran is not subject to UN sanctions, and it does not recognize the legality of unilateral US sanctions. Concerns also extend to the military domain, with China reportedly providing components for Iranian drones and missiles, and access to its satellite navigation system. Beijing, however, is wary of provoking further US sanctions or damaging relations with Washington and its allies.
Despite these complexities, President Trump has downplayed China's involvement in the Iran war, stating on September 4 that "they're [China] not really involved." Expectations for a breakthrough on Iran at the upcoming summit are reportedly low, with both leaders signaling a focus on economic outcomes.