China has urged all parties involved in the Middle East conflict, particularly the United States and Israel, to cease military operations, warning of a “vicious cycle” in a war that analysts say, if prolonged, could undermine global growth and weaken demand for Chinese exports.
“He who rang the bell must be the one to untie it,” said China’s Special Envoy to the Middle East, Zhai Jun, at a press conference following his diplomatic trip that included stops in Saudi Arabia, the United Arab Emirates, and Kuwait, according to Reuters.
He emphasized that China would maintain close communication with all interested parties and make continuous efforts to reduce tensions and promote regional peace and stability, reports Sinjali.
In a separate briefing, Foreign Ministry Spokesperson Lin Jian warned that the use of force would only lead to a “vicious cycle” and that the war should never have started.
“If hostilities continue to spread and escalate, the entire region will descend into chaos,” he stated.
On Saturday, Trump gave Tehran a 48-hour ultimatum to reopen the Strait of Hormuz to all vessels, threatening to destroy Iranian power plants otherwise.
Iranian attacks have effectively closed this key waterway, which transports one-fifth of global oil and liquefied natural gas, triggering the worst oil crisis since the 1970s.
China’s Exports
While Beijing did not provide detailed concerns, a prolonged conflict could affect China’s export outlook.
Emerging markets, the main drivers of Chinese export growth, are particularly sensitive due to limited oil reserves and vulnerability to rising energy costs.
“Weakening growth among China’s trading partners in emerging markets is likely to impact Chinese exports to these countries in the coming quarters,” said Hui Shan of Goldman Sachs in a report on the short-term risks to China’s economy.
China is in a relatively better position to absorb higher oil prices, with coal accounting for roughly 60% of its energy mix, ample oil reserves, and imports via the Strait of Hormuz representing only about 5% of total energy consumption.
However, rising oil and gas prices could increase inflation and end the deflation of production costs, according to China’s chief economist.
The bank has lowered its growth forecast for China in the second quarter and raised its inflation outlook for 2026.
When asked if China had pressured Iran to ensure safe passage for Chinese vessels and oil shipments through the strait, Lin said that Beijing remains in communication with all parties and is committed to easing tensions.
