Kathmandu— China, a long-standing economic partner to Iran, has shown limits in supporting Tehran amid escalating pressure from the United States. While China opposes US sanctions and military actions against Iran, analysts note that Beijing's foreign policy aims to balance relations with numerous countries, including the Gulf states and the U.S., limiting its willingness to fully prop up Iranian leadership.

China-Iran Economic Ties

China has been a significant buyer of Iranian oil, taking up to 90 percent of Iran's exports since February. However, Iranian crude accounts for only about 2 percent of China’s overall energy mix. Chinese state-owned refiners have largely avoided Iranian oil due to sanctions fears, leaving the trade to smaller independent 'teapot' refiners.

Diplomatic Balancing Act

Chinese President Xi Jinping attended the Shanghai Cooperation Organisation summit in Bishkek, Kyrgyzstan, where he met with leaders including Iran's Masoud Pezeshkian. Following this, Xi visited Egypt to call for a diplomatic resolution to the Iran conflict and oppose 'external interference'. Analysts suggest that China is likely to continue opposing US sanctions politically but will not provide Tehran with unconditional support.

Rhetoric vs Reality

Despite signing a $400 billion investment agreement in 2021, few projects have materialized due to Chinese firms' reluctance to navigate sanctions and Iran's bureaucratic challenges. In 2023, Iran’s deputy economy minister expressed dissatisfaction with the level of Chinese investment, which amounted to only about $185 million.

(With inputs from Al Jazeera)

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Originally published on abcnews.com.np.