China-Iran Trade Report (November 2021)
Chinese Exports Rise Further
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for November shows a huge jump in Chinese exports to Iran, further increasing the China’s trade surplus. Chinese exports to Iran totalled just under $1 billion, the highest level since April 2019, just one month prior to the Trump administration’s revocation of waivers permitting the sale of Iranian oil, a move that significantly depressed China-Iran bilateral trade. ___STEADY_PAYWALL___
The rise in November exports builds on October’s strong totals and reflects continued Iranian demand for machinery (HS Chapter 84), exports of which rose 37 percent from the previous month to reach just under $250 million. Chinese exports of transportation equipment (HS Chapter 87) likewise rose 30 percent from October to reach $154 million.
Chinese imports from Iran totalled $492 million in November, compared to $425 million in the previous month. The significant rise in Chinese exports and limited growth in imports saw China’s trade surplus rise to the highest level in 24 months. However, the rise in Chinese exports to Iran may have been enabled in part by an increase in indirect imports in Iranian oil, meaning that the real trade surplus is likely lower than customs data suggests.
Notably, Chinese imports of oil from the United Arab Emirates exceeded $3 billion in November, an staggering total. Over the last year, there has been a steady rise in Chinese imports of UAE oil, now reflected in the below chart. The import totals are now at levels that—as in the case of Malaysia—suggest a significant portion of the oil is Iranian. As reported by the Bourse & Bazaar Foundation in an October analysis, the UAE appears to be an increasingly important vector in China-Iran trade, facilitating not just Chinese imports of Iranian oil, but also the re-export of Chinese goods to Iran.
