China-Iran Trade Report (December 2021)
A Well-Timed Report
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for December reveals the highest monthly level of trade with Iran in over two years. Total trade was valued at $1.65 billion. Notably, China declared direct imports of Iranian oil for the first time since December 2020, adding $148 million to the import total. But the rise in bilateral trade was also driven by strong non-oil imports, as well as by exports to Iran.___STEADY_PAYWALL___
Chinese exports to Iran fell 10 percent from their November peak to $891 million, marking the second highest total this year. Exports of machinery (HS Chapter 84) totalled $221 million, down 12 percent from November. Exports of vehicles and transportation equipment (HS Chapter 87) were down 15 percent from the previous month and totalled $131 million.
Chinese imports from Iran reached $760 million in December, a 54 percent increase on November’s total and the highest level in registered this year. The sharp rise in imports was partially due to the declared oil purchases, but also reflected an increase in Chinese purchases of organic chemicals (HS Chapter 29) and continued demand for plastics (HS chapter 39). When excluding the $148 million in oil imports (HS chapter 27), total imports rose to $611 million, the highest level in 24 months.
The release of the trade data comes just days after Iranian foreign minister Hossein Amir-Abdollahian completed a visit to Beijing. During the trip, Amir-Abdollahian and his Chinese counterpart, Wang Yi, announced that the 25-year Comprehensive Strategic Partnership agreement signed between China and Iran was proceeding into its “implementation” phase. While full implementation of deeper trade and investment links will depend on the lifting of US secondary sanctions, the recent uptick in bilateral trade suggests that China is committing to economic diplomacy with Iran, perhaps in anticipation of the restoration of the Iran nuclear deal.
