China's Economic Ties with Iran Under Scrutiny Amid Rising Costs

As the costs of the ongoing conflict rise, Kevin Hassett, a senior advisor to former President Trump, suggests that China may need to reassess its economic ties with Iran. The implications of this relationship are significant, especially with the upcoming Trump-Xi summit where Iran is expected to be a key topic. Analysts speculate that China's growing economic concerns could lead to a strategic shift, potentially stabilizing global markets and fostering US-China cooperation. This developing story highlights the intricate dynamics of international relations and economic strategies.

By Narendra Chaudhary May 11, 2026, 22:36 IST

China's Economic Dilemma with Iran

Kevin Hassett, a senior economic advisor to former President Donald Trump, indicated on a recent political talk show that China might soon need to reconsider its close relationship with Iran due to the escalating costs associated with the ongoing conflict. He noted that the strong economic ties between Beijing and Tehran are becoming increasingly burdensome as the war disrupts global energy markets and supply chains. "China might want to reevaluate its relationship with Iran," Hassett remarked, adding that the current oil situation is financially impacting China, which is beginning to feel the strain like many others.

Beijing Faces Growing Challenges

Historically, China has been a key economic ally of Iran, importing significant quantities of Iranian oil despite US sanctions. However, the ongoing disruptions in the Strait of Hormuz, coupled with US restrictions on Chinese refineries purchasing Iranian crude, have complicated China's energy strategy. Hassett's remarks come just ahead of a scheduled meeting between President Trump and Chinese leader Xi Jinping in Beijing, where Iran is anticipated to be a central topic, with the US urging China to leverage its influence to encourage Iran to return to negotiations.

Potential for Strategic Change?

Some experts suggest that China may be growing increasingly concerned about the economic repercussions of the conflict in Iran, particularly the rising global energy prices that are adversely affecting its own economic growth. While China has publicly backed Iran's legitimate rights, it has also subtly encouraged Tehran to adopt a more flexible stance in negotiations. Hassett posited that a more pragmatic approach from China could not only stabilize global markets but also pave the way for enhanced economic cooperation between the US and China. The Trump administration perceives China's role in Iran as one of the few remaining avenues to help resolve the crisis in the Strait of Hormuz and alleviate energy prices that are impacting American consumers. This situation continues to evolve as the Trump-Xi summit approaches later this week.