After the failure of peace talks between Iran and America in Pakistan, an atmosphere of uncertainty has once again arisen in the world. While on one hand the Strait of Hormuz has been closed by Iran, on the other hand the US President has made another announcement. He has said that if any country supplies arms to Iran, it will impose 50 percent tariff on it. With this announcement, Trump has tried to target China. It has also been indicated that China is continuously helping Iran with weapons.
Now a statement has also come from China. China’s Defense Minister Admiral Dong Jun has said that we are committed to peace and stability in the world. We are keeping an eye on the situation in the Middle East. Our ships are continuously moving in and out of the Strait of Hormuz. We have trade and energy agreements with Iran. We will respect them and hope that other people do not interfere in our affairs. Iran controls the Strait of Hormuz and it is open to us.
China’s statement in favor of Iran has not come just like that. What the Defense Minister of Iran has said is also not out of thin air. There is tremendous bilateral trade between Iran and China. There are two sides to this bilateral trade. One that is visible to the whole world. The second one which is not official anywhere. Which is under the shadow of restrictions. This is being verified by none other than the American government department.
Such figures of Iran and China bilateral trade have been seen in the report of US China Economic and Security Review Commission. Anyone can be surprised to see this. Let us also tell you what kind of figures have come out regarding bilateral trade between China and Iran.
China is Iran’s biggest trading partner
According to the report of the US China Economic and Security Review Commission, China is Iran’s largest trading partner and maintains important trade relations with Tehran even after the US and multilateral ban on it. China said the total bilateral trade with Iran in 2025 will be $9.96 billion. However, this does not include Iran’s undeclared crude oil exports to China worth about $31.2 billion in 2025, which when included account for more than 75 percent of the total bilateral trade.
In 2021, China pledged to invest up to $400 billion over 25 years under a comprehensive strategic partnership agreement with Iran. In the years that followed, there has been little investment due to hesitation by Chinese companies due to sanctions. However, the Wall Street Journal reported in October 2025 on an oil-for-infra deal involving Chinese state-owned Sinosure that may have secretly facilitated investments worth up to $8.4 billion in 2024.
Given China’s broader economic interests in the Middle East, Beijing balances its support for Iran with other important trade and investment partners in the region. In 2025, China recorded bilateral trade of $108 billion with Saudi Arabia and $108 billion with the UAE, while with Iran it was $41.2 billion (which includes undeclared oil imports).
China is the biggest buyer of Iranian oil
Iran has the third-largest reserves of crude oil and is home to the world’s largest natural gas field, which it shares with Qatar. Sanctions have limited the growth of LNG export infra, but Iran remains one of the world’s top exporters of crude oil, with total production capacity of 3.8 million barrels per day (bpd). China is by far the largest buyer of Iranian crude, purchasing more than 90 percent. China has also got a huge discount of 8-10 dollars per barrel on Iranian oil. In 2025, China will import about 1.4 million bpd of Iranian oil, which is about 12 percent of its total crude oil imports.
How much does Iran earn by giving oil to China?
Despite the waivers, China’s purchases of Iranian oil generate billions of dollars in annual revenue for Tehran, which is projected to reach $31.2 billion by 2025. Oil revenue from China accounts for about 45 percent of Iran’s government budget. China is heavily dependent on oil imports via sea route, but is actively preparing to deal with the sudden drop in supply. China depends on seaborne imports for more than 63 percent of its oil needs, and half of China’s imports pass through the Strait of Hormuz. China has ensured a diverse and flexible supply of oil (more than 22 percent from Iran, Russia and Venezuela combined) so that it does not become overly dependent on unstable sources.