China Fuels Iran’s Economy: Contributing $65-70 Billion to Foreign Trade

In recent discussions surrounding Iran’s economic landscape, it has been revealed that a significant portion of Iran’s non-oil trade is conducted with China, further solidifying their economic partnership. According to Majid Reza Hariri, the chairman of the Iran-China Joint Chamber of Commerce, approximately 50% of Iran’s non-oil trade occurs with China. This includes a remarkable 29% of Iran’s exports and 25% of its imports, alongside similar volumes processed through third-party countries such as the United Arab Emirates.

Hariri highlighted that China is a crucial player in Iran’s oil industry, purchasing over 92% of Iran’s oil exports. “Summing up the figures, around $65-70 billion worth of (Iran’s) oil and non-oil trade is with China,” he stated, as reported by the ISNA news agency.

The timing of Hariri’s remarks is significant, coinciding with Iranian President Masoud Pezeshkian’s upcoming visit to China. During this pivotal trip, Pezeshkian is expected to attend a summit of the Shanghai Cooperation Organization, where he will likely oversee the signing of several key economic and energy cooperation agreements with China.

Recent reports from Iranian media have indicated that Pezeshkian’s four-day visit will focus on strengthening economic ties between the two nations. This strategic collaboration is expected to enhance both countries’ positions in the global market, particularly in the energy sector.

In a separate analysis, ISNA reported that in the first half of 2025, China depended on Iran for approximately 13.6% of its total oil imports. Over this period, China imported an average of 1.38 million barrels per day from Iran, showcasing the depth of their trade relationship.

Interestingly, most of the Iranian oil shipments that reach China are directed to privately-owned refiners. These refiners benefit from discounts of up to 8% per barrel, which Iran offers to navigate the complexities of US sanctions imposed on the country. This arrangement not only facilitates the flow of oil but also underscores the innovative strategies employed by both nations to maintain their economic ties despite external pressures.

Key Highlights of Iran-China Trade Relations

• Non-Oil Trade: Approximately 50% of Iran’s non-oil trade is with China.
• Export and Import Ratios: China accounts for 29% of Iran’s exports and 25% of its imports.
• Oil Exports: China purchases over 92% of Iran’s oil exports.
• Trade Value: The total worth of Iran’s oil and non-oil trade with China is estimated at $65-70 billion.
• Oil Imports: In the first half of 2025, China imported an average of 1.38 million barrels per day from Iran.
• Discounted Shipments: Private refiners in China receive discounts of up to 8% per barrel on Iranian oil.

This dynamic trade relationship between Iran and China not only reflects their mutual interests but also highlights the broader geopolitical implications of their partnership. As they navigate the complexities of international sanctions and economic pressures, both countries are poised to leverage their strengths to foster growth and resilience in their economies.

The upcoming agreements and cooperative initiatives during President Pezeshkian’s visit are expected to further solidify this partnership, paving the way for enhanced economic collaboration in the future. As both nations continue to work together, they are likely to explore new avenues for trade and investment, ensuring a robust economic framework that benefits both sides.

In conclusion, the Iran-China trade relationship exemplifies the importance of strategic partnerships in today’s global economy. With significant trade volumes and a focus on energy cooperation, both countries are set to play a pivotal role in shaping the future of international trade dynamics.