Beijing: Donald Trump’s threat to slap a 25% tariff on countries that trade with Iran risks reopening old wounds with Beijing, Tehran’s top partner, challenging Chinese leader Xi Jinping’s global image and resolve to defend China’s commercial interests.
Iran became a major flashpoint in U.S.-China ties during Trump’s first term in the White House, as Washington tightened sanctions on the Islamic Republic and put China’s Huawei, accused of selling technology to the country, in its cross-hairs. The arrest of its founder’s daughter in Canada at the U.S.’s request sparked bitter recriminations that lingered over the remainder of that administration.
With Iran in his sights once again, a fresh 25% duty would see Chinese shipments to the U.S. incurring levies exceeding 70%, higher than the effective 57.5% tariffs in place before the two leaders struck a deal in October to de-escalate their trade war. It remains unclear which countries with Iranian business links Trump might target, and he has not named China. The U.S. president has also made offhand remarks that threatened to upend U.S. foreign policy without acting on them before. “China is just an excuse, a kind of disguise for the Trump administration, to impose new pressure toward Iran,” said Wang Jin, fellow at the Beijing Club for International Dialogue think tank.
“But it’s an exaggeration, as China does not have that much business with Iran.” China has sharply reduced Iranian imports in recent years, according to Chinese customs data, with Chinese companies wary of being sanctioned by the U.S. government. China bought just $2.9 billion of Iranian goods in the first 11 months of last year, the latest customs data shows, compared with a peak of $21 billion in 2018 during Trump’s first presidency. “China and Iran are not as close as in the public imagination,” said a Beijing-based Chinese academic who advises the foreign ministry on Iran policy, and requested anonymity as they were not authorised to speak to media. China and Iran’s commercial relationship is built around oil, and while Beijing has been unable to broaden the two countries’ trade ties, political relations have grown closer, they added.
