China-Iran Trade Report (March 2023)
Chinese Exports to Iran Surge
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for March 2023 shows a significant jump in Chinese exports to Iran. Exports totalled $1.5 billion—the highest monthly value since May 2018. However, March’s record-high exports are likely to be an outlier, with monthly exports expected to stabilise around $1 billion.
Electrical appliances (HS Chapter 85) drove March’s exceptional surge in the value of Iran’s imports from China. Tehran bought $522 million worth of Chinese electric machinery and parts, more than three times the monthly average recorded in 2022. Of this total, $427 million is categorised as “telephone sets, including smartphones and other telephones for cellular networks.” The figure is so high it seems like it could be an error.
In the same month, China exported $280 million of vehicles (HS Chapter 87) to Iran, returning to levels last seen before the Trump administration abandoned the JCPOA and reimposed secondary sanctions in 2018.
In March, Chinese imports from Iran totalled $445 million, consolidating the positive trend that followed December 2022 low point. Beijing imported $101 million of ores, slag, and ash (HS Chapter 26). March’s import of copper (HS Chapter 74) grew 152% compared to February, totalling $116 million. Consistently with the trend that began in July 2022, the value of Chinese declared imports of Iranian oil remained zero.
Following January and February seasonal contraction, China’s crude imports from the UAE and Malaysia recovered to $2.94 billion and $3.7 billion, respectively. 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. Iran’s oil continues to hold its share in the supply basket of Chinese teapot refineries despite the growing competition of the heavily discounted oil offered by Russia.
Record-high exports to Iran and the absence of declared oil imports further impacted the China-Iran trade balance, with Tehran continuing to run a trade deficit with Beijing.
