China's Interests in Iran
More than half of China's oil imports need to pass through the Strait of Hormuz. 12% to 18% of China's oil comes from Iran. The risks are significant for China.
As the world's largest crude oil importer, China is vulnerable to fluctuations in oil prices. If the conflict escalates and gets out of control, the consequences for China could be severe.
In 2016, the Iranian government agreed with China to jointly build the Kharg oil terminal, which facilitates business for Chinese shipbuilders in Iran and also creates conditions for state-owned enterprises such as CNPC and Sinopec to enter the Iranian oil market.
Iran is a market with nearly 90 million people. China exports a large number of cars and consumer electronics there. Five metro lines in Tehran were built by Chinese companies. China has also won the construction project of high-speed rail between the capital of Iran and Isfahan, which was originally scheduled to be completed in 2024 but is currently facing delays.
China is Iran's largest trading partner, while Iran is only China's 38th largest trading partner.
Original article: https://www.toutiao.com/article/1835417046173833/
Disclaimer: This article represents the views of the author alone.