China-Iran Trade Report (August 2022)
China’s Trade Surplus Grows
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for August 2022 show a slight rebound in Chinese imports from Iran after the significant drop experienced in July. The rebound was driven by non-oil imports, as the declared value of the Iranian crude that reached China hovered close to zero. ___STEADY_PAYWALL___
In August, Chinese imports from Iran settled just under the $500 million threshold. The slight rebound of Chinese imports was driven by non-oil mineral products (HS Chapter 24), whose value reached $44 million. In August, after a significant decline in July, the value of imported organic chemicals (HS Chapter 29) set back at $116 million.
The total value of Chinese imports was negatively affected by a further fall in oil imports, which declined to $1.5 million. August data are consistent with the significant drop in Chinese declared imports of Iranian crude in July. Oil import data from the past two months might suggest a trend similar to that seen between February and June 2022, in which China effectively zeroed the imports of Iranian crude for three consecutive months before declaring over $200 million for two straight months. At the same time, Chinese oil imports from the UAE and Malaysia remain high, indicating that a significant volume of Iranian oil is reaching China despite the fall in declared imports. Consequently, it remains difficult to gauge the real impact of Russian discounted oil marketed to Chinese teapot refineries on the volume of Iranian crude China imports via third countries.
Chinese exports to Iran remained stable, remaining slightly over the $1 billion threshold. On a month-to-month basis, the value of exported organic chemicals (HS chapter 29) declined by 25%. The exports of electric machinery (HS chapter 85) totalled $169 million – the highest value since the beginning of the year. Similarly, in August, Iran imported $232 million worth of cars and other vehicles from China, continuing the growth trend that began in March 2022. Overall, the high value of Chinese exports continues to move the China-Iran trade balance in Beijing’s favour.
