Since the Trump administration reimposed secondary sanctions on Iran in November 2018 as part of its “economic war,” the Iranian economy has faced higher inflation, disruption in trade, and a manufacturing slowdown. But over the least year, there are signs of resilience and readjustment that suggest that Iran’s economy is unlikely to be brought “to its knees,” despite the fact that the economy continues to face significant hurdles.

A review of trade data from the General Customs Administration of the People’s Republic of China shows that China-Iran trade has fallen dramatically in the two months following the reimposition of US secondary sanctions. Chinese exports to Iran have collapsed from about USD 1.2 billion in October 2018 to just USD 391 million in December 2018—a fall of nearly 70 percent.