China-Iran Trade Report (April and May 2022)
China is Still Buying Iranian Oil
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for May 2022 shows no major change in Chinese imports of Iranian oil, despite reports that discounted Russian oil may be squeezing Iran’s market share.___STEADY_PAYWALL___
Chinese exports to Iran rose from $611 million in April to $744 million in May. Rising inflation expectations spurred Iranian consumers to buy more goods in April and May, leading to a bump in new orders and higher output among Iranian manufacturers. Iran imported $175 million worth of Chinese machinery (HS Chapter 84), the highest total since January.
Chinese imports from Iran fell in April to $556 million as the country continued to undergo COVID-19 lockdowns. By May, imports rebounded to $703 million. But this total included an unusual $200 million declared purchase of Iranian crude oil (HS Chapter 27) that was likely destined for China’s strategic petroleum reserve. Chinese oil imports from Malaysia declined in May, but purchases from the UAE surged, suggesting that China is continuing to import significant volumes of Iranian oil even as more Russian crude is marketed towards Chinese refiners. But Russian oil should begin to displace Iranian oil in the coming months.
