China-Iran Trade Report (September and October 2021)
Editor’s Note: The data for September and October are being released as one report due to author availability last month.
China’s Trade Surplus Surges
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for October shows that China’s surplus in trade with Iran is at its highest level since August 2020, reflecting stable exports and a significant drop in imports over the last two months. ___STEADY_PAYWALL___
Chinese exports to Iran remained stable as Iranian buyers showed strong demand for machinery (HS Chapter 84) and transportation equipment (HS Chapter 86). Exports totalled $618 million in September, rising to $772 in the following month, the highest monthly total so far this year.
But Chinese buyers showed less interest in Iranian goods, as imports fell significantly from August’s $713 million high to just $473 million in September and $425 million in October. The drop in Chinese imports reflected lower purchases of Iranian mineral products (HS Section 5) and organic chemicals (HS Chapter 29).
The fall in imports contributed to a surge in China’s trade surplus with Iran, which totalled $346 million, the highest total since August 2020, when Iran’s economy was facing significant pandemic-related disruptions. Of course, the trade balance reflected in customs data does not include the value of Iranian oil sales to China via third countries such as Malaysia, nor does it include non-oil goods that are being sold to China via countries such as the UAE. Still, the volatility in direct Chinese imports from Iran remains a challenge for Iranian manufacturers for whom China should be a large and reliable market.
