China-Iran Trade Report (December 2022)
Chinese Imports from Iran Decline Again
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for December 2022 shows a continued decline in Chinese imports from Iran, with non-oil imports falling below $300 million.
In December, China’s imports of ores, slag, and hash (HS Chapter 26) from Iran dropped significantly to $27 million. Compared to November, Iran tripped the value of copper (HS Chapter 74) exported to China, totalling $47 million. Overall, Chinese imports from Iran continued to decline, falling to a new 24-month-low of $311 million.
Despite doubling to $12 million, the value of Chinese declared imports of Iranian oil remained negligible. However, China’s crude imports from the UAE and Malaysia continue to grow, and reached a 24-month-high of $4.14 and $4.27 billion, respectively, in December. In recent years, China has used the UAE and Malaysia as intermediaries to import undeclared Iranian oil. Beijing also reportedly uses Malaysia as a transfer point for Russian and Venezuelan crude. December’s high oil imports from Malaysia and, especially, the UAE suggest that Iranian crude is retaining its share in the supply basket of Chinese teapot refineries despite the competition of Russian oil, probably owing to the recovery in Chinese demand.
In December, Chinese exports to Iran totalled $893 million. After November’s high-water mark, the value of electrical appliances (HS Chapter 85) imported by Iran declined to $79 million, a 77% drop compared to the month before. Similarly, in December, Tehran’s imports of base metals (HS Section XV) experienced a 24% decline month-on-month, totalling $65 million. Chinese exports of vehicles (HS Chapter 87) to Iran totalled $162 million, in line with November’s totals.
In 2022, the total value of Chinese exports to Iran reached $9.47 billion, while imports from Iran totalled $6.36 billion. Compared to 2021, the value of the China-Iran bilateral trade rose by approximately $1 billion, entirely reflecting the growth in Chinese exports to Iran. The persistent absence of declared oil imports from Iran continues to drive the trade balance in China’s favour.
