China-Iran trade plunges 24% as sanctions bite and Beijing shifts oil suppliers

Trade between China and Iran fell 24% to $9.09bn in the first 11 months of 2025 from $12bn over the same period in 2024, with Chinese exports to Iran declining 22% to $6.23bn whilst imports dropped 27% to $2.86bn, China's General Administration of Customs reported on December 24.

The decline comes as part of weaker Chinese demand and ongoing financial frictions between the two countries, leaving a trade surplus of $3.38bn in Beijing's favour.

Official figures understate energy flows as crude oil, the backbone of Iranian exports, is often recorded under third-country blends or omitted entirely.

November brought a modest rebound in Iranian shipments, with China importing $760mn, up from $735mn a year earlier. Chinese exports to Iran fell sharply, plunging 57% to $170mn from $395mn in November 2024.

The rebound in imports likely indicates delayed deliveries or a temporary surge in condensates and heavy crude rather than a sustained trend.

GACC data show Beijing's exports to Iran predominantly comprise industrial machinery, electrical equipment, automotive parts, chemicals and durable consumer goods, though official monthly bulletins do not provide full commodity-level breakdowns. Recorded import flows mainly include petrochemicals, minerals and non-crude hydrocarbon derivatives.

Chinese state media and Ministry of Commerce releases stress that despite lower formal trade volumes, "energy trade remains substantial" and strategic cooperation with Iran continues.

Falling exports relate to banking constraints, weaker Iranian purchasing power and heightened caution over secondary US sanctions, whilst import reductions partly stem from shifts toward discounted Russian crude and other non-Iranian suppliers.