Strait of Hormuz Crisis: Why China-Gulf Trade Still Flows
Iran Restricts Shipping in the Strait of Hormuz
Following surprise strikes on Iran by the United States and Israel, Iran's elite military force, the Islamic Revolutionary Guard Corps (IRGC), announced on February 28 that it would block the Strait of Hormuz and prohibit all vessels from passing through the critical maritime chokepoint.
In the days that followed, from March 1 to March 5, ships operating in the Persian Gulf reported severe electronic interference. Multiple vessels experienced unstable GPS and AIS navigation signals, with some reporting drifting positions or temporary signal loss.
At the same time, several attacks on commercial vessels were reported. According to the deputy commander of the IRGC Navy, more than ten oil tankers and cargo ships were struck by Iranian drones or artillery.
The rapid escalation of security risks forced global shipping companies to adopt emergency avoidance measures. Some vessels dropped anchor and suspended voyages, while others rerouted to avoid the region entirely. One of the world's busiest maritime corridors suddenly became a high-risk zone for international shipping.
Chinese-Linked Vessel Transits the Strait
Amid widespread disruption, an unusual development emerged.
On March 5, a bulk carrier named Iron Maiden successfully sailed through the Strait of Hormuz without interference. The vessel had reportedly changed its identification status from 'For Orders' to 'CHINA OWNER.' Records indicate the ship is operated by a shipping company registered in Shanghai.
Indian broadcaster NDTV cited sources saying Iran signaled it would allow Chinese vessels to pass through the strait as a gesture of appreciation for China's neutral stance during the conflict.
Later the same day, the IRGC stated that the Strait of Hormuz would remain open to 'friendly and peace-loving nations' while being closed to the United States, Israel, Europe, and their Western allies.
The continued transit of Chinese-linked vessels effectively created a limited channel for trade during the heightened security situation, helping maintain some commercial shipping flows between the Gulf region and global markets.
China–Gulf Trade: A Strategic Maritime Link
The countries referenced in this analysis include eight Gulf states: Saudi Arabia, United Arab Emirates, Oman, Qatar, Bahrain, Kuwait, Iraq, and Iran.
▸ Overall Trade Volume
In 2025, total trade between China and the eight Gulf countries reached 2.54 trillion yuan, accounting for 5.58% of China's total foreign trade.
• Chinese exports to the Gulf totaled 1.21 trillion yuan, representing 4.49% of China's global exports.
• Imports from the Gulf reached 1.33 trillion yuan, accounting for 7.17% of China's total imports.
China recorded an overall trade deficit of 114.1 billion yuan with the region.
By country:
• Saudi Arabia and the United Arab Emirates ranked first and second, with bilateral trade of 774.1 billion yuan and 772.6 billion yuan respectively.
• Trade with Iraq totaled 366.3 billion yuan, followed by Oman at 235.2 billion yuan and Qatar at 170.5 billion yuan.
• Kuwait, Iran, and Bahrain followed with smaller volumes.
China ran trade surpluses with the UAE, Iran, and Bahrain, while running deficits with Saudi Arabia, Iraq, Oman, Qatar, and Kuwait.
China's Major Exports to the Gulf
China exports a wide range of goods to Gulf markets.
The largest category is machinery and electronic products, totaling 436.8 billion yuan, accounting for 36.1% of exports to the region.
Key destinations include:
• UAE: 198.8 billion yuan
• Saudi Arabia: 138.9 billion yuan
• Iraq: 44 billion yuan
The second-largest category is transport equipment, valued at 186.8 billion yuan (15.4%).
Other major export categories include:
• Metal products, mainly steel and aluminum: 157.5 billion yuan
• Textiles, footwear, and apparel: 103.1 billion yuan
• Furniture, toys, lighting, and sporting goods: 70.7 billion yuan
• Plastic and rubber products: 67.5 billion yuan
• Chemicals and chemical products: 46.7 billion yuan
• Stone, ceramics, and glass products: 26.9 billion yuan
China's Major Imports from the Gulf
Energy resources dominate China's imports from the Gulf region.
In 2025, energy-related mineral products totaled 1.15 trillion yuan, accounting for 86.4% of imports.
Key imports include:
• Crude oil: 245 million tons (1.77 billion barrels), valued at 940.1 billion yuan
• Refined oil products: 10.08 million tons, 42.1 billion yuan
• Liquefied natural gas (LNG): 21.27 million tons, 78.9 billion yuan
• Liquefied petroleum gas (propane and butane): 18.02 million tons, 75.7 billion yuan
Beyond energy products, China imports large volumes of primary plastics and chemical materials, including:
Primary plastics: 7.55 million tons, 52.8 billion yuan
Methanol: 10.04 million tons, 19.45 billion yuan
Ethylene glycol: 5.12 million tons, 18.9 billion yuan
These chemicals are widely used in the production of synthetic fibers, antifreeze, solvents, pharmaceuticals, and agricultural chemicals.
Additional imports from the Gulf include metal ores, copper materials and scrap, sulfur, and small quantities of gold.
A Strategic Energy Chokepoint
Data shows that the Gulf region supplies:
• 42% of China's crude oil imports
• About one-quarter of refined oil imports
• Nearly one-third of LNG imports
• More than 50% of LPG imports
• 28% of primary plastics imports
• 70% of methanol imports
• 66% of ethylene glycol imports
• 56% of sulfur imports
Most of these shipments pass through the Strait of Hormuz, making the waterway one of the world's most critical energy transit routes.
As a result, the strait functions not only as a global energy artery but also as a key node in China's energy security and supply chain for essential chemical raw materials.
During the current geopolitical crisis, the continued passage of Chinese vessels highlights both the strategic relationship between China and Iran and the vital role the route plays in sustaining trade flows between the Gulf region and global markets.