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President Donald Trump met with Chinese President Xi Jinping at Gimhae International Airport during the APEC summit in Busan, South Korea, on October 30, 2025, exchanging handshakes amid diplomatic discussions.
This week, President Trump is scheduled to visit China. The ongoing conflict in the Middle East is prompting both nations to reassess their broader relationship strategies. China has called for an immediate halt to hostilities.
The escalating tensions over Iran threaten to overshadow the upcoming summit between Trump and Xi. Key issues include:
Iran Ceasefire Negotiations
U.S. Treasury Secretary Scott Bessent indicated that the leaders will address the Iran conflict, with the U.S. urging China to collaborate on efforts to reopen the Strait of Hormuz to international shipping. While China has engaged behind the scenes to encourage Iran to participate in peace talks with the U.S. in Pakistan last month, analysts note that China’s actions are not solely driven by U.S. interests. Following Iran’s foreign minister’s recent visit to Beijing, China called for a complete end to hostilities and expressed appreciation for Iran’s non-nuclear weapon commitments, while also recognizing Iran’s right to peaceful nuclear energy. The U.S. suspects Iran aims to develop nuclear weapons and demands Iran forgo enrichment rights for two decades and surrender its stockpile of highly enriched uranium.
Energy Security
China’s energy supplies are increasingly at risk as the conflict prolongs, leading Beijing to scale back exports of refined products like gasoline and jet fuel to prioritize domestic needs. A substantial portion of China’s crude oil imports come from the Middle East, where the closure of the Strait of Hormuz and U.S. blockades have left ships stranded and vulnerable. Chinese customs data show that April crude oil imports fell 20% year-over-year to its lowest in nearly four years. China’s Foreign Ministry has criticized the U.S. blockade, stating it does not serve global interests, and confirmed that a Chinese crewed oil tanker was attacked in the strait last week.
U.S. Sanctions on Iranian Oil and Arms Sales
Despite pressure from the Trump administration, China remains the largest purchaser of Iranian oil, with over 80% of Iran’s exports headed to China. Independent Chinese refiners benefit from discounted Iranian oil under sanctions. Estimates from Kpler suggest China imported approximately 1.38 million barrels daily in 2025. In April, the U.S. Treasury sanctioned Chinese refiner Hengli Petrochemical for purchasing Iranian oil worth billions and issued warnings to two Chinese banks about secondary sanctions if they facilitated Iranian transactions. China has pushed back, instructing companies to ignore U.S. sanctions against five refiners and invoking its own laws to retaliate against entities enforcing what it views as unlawful sanctions. Just days before the visit, U.S. sanctions targeted four Chinese and Hong Kong entities involved in arm sales and ballistic missile materials intended for Iran.
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