China weathered Trump's tariffs - but the Iran war is taking a toll
The Middle East conflict is putting pressure on factory orders, costs and jobs in China's export-driven economy.
Coverage by Political Leaning
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Notable Quotes
"The Strait of Hormuz should maintain normal passage, as this serves the common interests of regional countries and the international community."
— Xi Jinping , Politician
"I’m winning a War, BY A LOT, things are going very well."
— Donald Trump , Politician
"The Art of War argues that the best course is to avoid war and, if it begins, to end it quickly."
— Donald Trump , Politician
"China will call (Mr Trump’s) bluff. I can assure you that Trump has no guts to impose the extra 25 per cent tariffs on China, and if he does, China will retaliate and he will be punished, just like in Meng Wanzhou’s case."
— Wu Xinbo , Academic
"At a time when global trade dynamics are shifting rapidly, Indian exporters must be equipped with the right policies, strategies, and support to compete effectively."
— S.C. Ralkan , Executive
"Reaching for tariffs as your first and last tool will not fix it."
— Ursula von der Leyen , Politician
"We’ve had to re-quote prices and clients are still considering it."
— Shao Haixia , Executive
"If the fighting keeps going, it’s not just us – Europe’s economy is in bad shape."
— Liang Su , Executive
"Since the war, our sales in the Middle East have basically been on hold."
— Wang Yuqing , Executive
"Overall input costs increased 7%-8%, but the firm plans to fully absorb the hit for at least six months."
— Jojo Lei , Executive
"President Trump created maximum negotiating leverage for himself by issuing such a massive tariff threat."
— Donald Trump , Politician
"President Trump created maximum negotiating leverage for himself by issuing such a massive tariff threat."
— Scott Bessent , Executive
"It would be possible to reach ninety deals in ninety days."
— Peter Navarro , Executive
Key People
Chang Ching is a senior research fellow at the Society for Strategic Studies in Taipei.
Former president of the United States known for his aggressive economic policies.
Feng Chucheng is the founding partner of the Beijing-based Hutong Research.
Gedaliah Afterman is the head of the Asia-Israel policy programme at the Abba Eban Institute.
Giorgia Meloni is the Premier of Italy.
Home appliances unit manager at Golden Field Industrial.
Lee Jae-myung is a South Korean politician and leader of the Democratic Party.
General manager at a rice cooker and kettle manufacturing company.
Ma Xiaolin is the dean of the Mediterranean Rim Institute at Zhejiang International Studies University.
Daughter of Huawei's founder and CFO of Huawei Technologies.
Mohammed bin Salman is the Crown Prince of Saudi Arabia.
Peter Navarro served as a White House advisor on trade under President Trump.
Scott Bessent is the Treasury Secretary.
S.C. Ralkan is the head of the Federation of Indian Export Organizations.
General manager of a plastics factory in China.
Shigeru Ishiba is a prominent Japanese politician.
Manager of a firm producing industrial appliances.
Ursula von der Leyen is the president of the European Commission.
Analyst from the Beijing Club for International Dialogue think-tank.
Sales director at Taimu Electrical.
Dean of the Institute of International Studies at Fudan University.
Xi Jinping is the General Secretary of the Communist Party of China and President of China.
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All Coverage
The Middle East conflict is putting pressure on factory orders, costs and jobs in China's export-driven economy.
The Iran war's impact on the global economy is significant, with the International Monetary Fund projecting a slip in global economic growth this year due to the conflict's effects.
The Iran war has led to higher energy costs, weak domestic demand, and shrinking export growth, posing challenges to China's economy at a delicate moment.
The prolonged Iran war and unresolved China tariff disputes are intensifying global economic instability.
U.S. President Trump's threat to impose tariffs on countries trading with Iran risks reopening old wounds with Beijing, Tehran’s biggest trading partner.
Trump's threat of 25% tariffs on countries trading with Iran risks escalating tensions with China, reminiscent of the Huawei and Meng Wenzhou incidents.
China responds to the U.S. imposing a 34% tariff on imports from China by announcing a matching tariff on all American goods.
The compounding effects of Liberation Day tariffs and the Iran conflict carry the potential to set a slow-motion famine machine in motion, affecting global food security.
The Middle East conflict is putting pressure on factory orders, costs, and jobs in China's export-driven economy.
The Middle East conflict is putting pressure on factory orders, costs, and jobs in China's export-driven economy.
The Middle East conflict is putting pressure on factory orders, costs, and jobs in China's export-driven economy.
The Middle East conflict is putting pressure on factory orders, costs, and jobs in China's export-driven economy.
China amassed a massive oil stockpile throughout 2025, reaching an estimated 1.4 billion barrels by December 2025, positioning it advantageously amid the Iran conflict's impact on global oil supply.
China has increasingly positioned itself as a behind-the-scenes diplomatic player in the latest Middle East conflict involving Iran, leveraging its economic ties to encourage Tehran to participate in peace talks.
China’s exports grew 2.5% in March from a year ago, significantly slowing from the previous two months as uncertainties rose from the Iran war and its impact on energy prices and global demand.
China has strategically benefited from the Iran war without becoming militarily involved, enhancing its global position through increased diplomatic influence and economic activity.
Despite initial fears, the Iran war has not triggered a significant gas shock, with global markets remaining stable and gas prices in Europe staying around €42 per MWh.
China has leveraged its strong economic relationships to maintain a neutral stance in the Iran war, positioning itself as a distinct alternative to the US approach.
China's manufacturing sector, previously resilient to US tariffs, is now facing increased pressure from rising oil costs and disrupted shipping routes due to the Middle East conflict.
The Iran war has led to a 20% increase in raw material costs for Chinese manufacturers, affecting their margins and global demand.
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