China-Iran Trade Report (November 2022)
Surge in Chinese Exports
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for November 2022 shows a surge in Chinese exports to Iran, moving Tehran’s trade deficit back to July 2022 peak level.
In November, Chinese exports to Iran totalled $935 million, marking a 50% increase compared to October. November’s growth was mainly driven by the export of electric appliances (HS Chapter 85) to Iran. Total exports in this category rose to $240 million—a level last seen in the first quarter of 2018.
In November, Chinese imports from Iran declined further, falling to a 24-month-low of $326 million. Although the current trend reflects China’s zero oil imports from Iran, Chinese imports of ores, slag, and ash (HS Chapter 26) and organic chemicals (HS Chapter 29) declined substantially compared to October 2022. In November, the value of imported plastic articles (HS Chapter 39) fell to $139 million, the lowest monthly level this year. China’s early December decision to relax the zero-COVID policy will represent an import test for Sino-Iranian trade: Iranian exports to China may rise following the anticipated resurgence in Chinese domestic demand.
Consistently with the trend that began in July 2022, the value of Chinese declared imports of Iranian oil remained close to zero in November. However, China’s crude imports from the UAE and Malaysia continue to grow, reaching a 24-month-high at $4.13 and $3.96 billion, respectively. In recent years, China has used the UAE and Malaysia as intermediaries to import undeclared Iranian oil. Malaysia is also reportedly used by Beijing as a transfer point for Russian crude. November’s high oil imports from the UAE and Malaysia suggest that Iranian crude is retaining its share in the supply basket of Chinese teapot refineries despite the competition of Russian oil.
