Business Asia Middle East

China's Trade with Iran Plunges

China's Trade with Iran Plunges

The tightening of restrictions in the Strait of Hormuz has forced Chinese petrochemical producers to seek alternative feedstocks.

Consequently, China is set to import a record volume of U.S. ethane this month to mitigate the impact of the energy shock.

Despite the trade slump, Beijing is reportedly reviving domestic coal-to-gas projects to bolster its energy security.

The situation underscores the far-reaching economic consequences of the US-Israeli war on global supply chains.

People's Republic of China CEphoto, Uwe Aranas, CC BY-SA 3.0
People's Republic of China
Country in East Asia
Iran
Country in Western Asia
Strait of Hormuz
Strait between the Gulf of Oman and the Persian Gulf
United States
Country located primarily in North America