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Reasons Why China is Willing to "Go to Great Lengths" to Mediate Between the US-Israel and Iran

| Source: CNBC Translated from Indonesian | Trade
Reasons Why China is Willing to "Go to Great Lengths" to Mediate Between the US-Israel and Iran
Image: CNBC

China is reportedly making “active efforts” to push for a ceasefire in the Iran conflict, amid rising expectations for Beijing’s diplomatic role on the global stage. However, this move is seen as rooted in domestic economic interests, particularly in maintaining export stability and growth.

A New York Times report cited three Iranian officials stating that China is involved in efforts towards a temporary ceasefire. Meanwhile, AFP news agency quoted US President Donald Trump on Beijing’s role.

In response, China’s Foreign Ministry spokesperson Mao Ning said Beijing has made “active efforts” to de-escalate the conflict. She revealed that Foreign Minister Wang Yi has made 26 phone calls to representatives from various countries, including Russia, Saudi Arabia, Germany, and Iran, since the US-Israel attack on Iran on 28 February.

However, Mao did not explicitly confirm any direct mediation role.

China had previously called for an “immediate halt” to military operations following the attack. When asked about Iran’s retaliatory strikes, Beijing only urged “all parties” to exercise restraint to prevent conflict escalation.

Senior researcher at the Council on Foreign Relations, Zongyuan Zoe Liu, assessed China’s actions as more facilitative than direct mediation.

“What Beijing is doing is not really about direct mediation. More accurately, it is facilitating a ceasefire,” she said, quoted by CNBC International on Friday (10/4/2026). “From that perspective, there is nothing new in Beijing’s foreign policy.”

According to Liu, China’s primary concern lies in the global economic impacts of the conflict. As an export-based economy, China is highly vulnerable to disruptions in international trade. Last year, net exports contributed about one-third to the country’s Gross Domestic Product (GDP).

IMF Managing Director Kristalina Georgieva also warned that global economic growth will continue to slow even if a ceasefire is achieved, particularly due to uncertainties in the Strait of Hormuz.

This strait is a vital route handling around 20% of global oil supplies. For China, the route is crucial as nearly half of its seaborne oil imports pass through the area, although it accounts for only about 6.6% of the nation’s total energy consumption.

Director of international political studies at the Chinese Academy of Social Sciences, Zhao Hai, stated that his country faces significant pressure from surging energy costs.

“China is under great pressure due to rapidly rising energy costs and hopes the Strait of Hormuz will reopen soon,” he said.

Data shows that petrol prices in China surged 11% in March compared to the previous month. The government has even raised domestic petrol prices twice in six weeks, with a total increase of 1,580 yuan per metric tonne, equivalent to about US$0.60 per gallon.

This rise is also squeezing manufacturing industry margins, exacerbating inflationary pressures in the production sector.

Meanwhile, Brent crude oil prices remain below US$100 per barrel, despite signs of recovery in distribution through the Strait of Hormuz. On the other hand, Iran’s attacks on Saudi Arabia’s oil infrastructure have also reduced that country’s production.

Diplomatic Role and Its Limitations

China’s actions are also inseparable from its track record in mediating the normalisation of Iran-Saudi relations a few years ago. That success temporarily boosted Beijing’s profile in the Middle East.

However, Zhao emphasised that China lacks both the capacity and desire to pressure conflicting parties into negotiations. He said Beijing’s support serves to bolster mediation efforts by other countries, such as Pakistan.

Pakistan is scheduled to host a meeting of Iranian and US leaders in Islamabad to discuss a ceasefire. Nevertheless, China’s direct role in the meeting remains unclear.

“We support mediation efforts by countries including Pakistan,” Mao said. “China has made active efforts for this purpose.”

At the end of March, China and Pakistan also released a joint plan to restore stability in the Middle East, including pushing for a ceasefire and normalising shipping routes in the Strait of Hormuz.

Nevertheless, global geopolitical dynamics are assessed as unchanged. Liu believes the structural tensions between China’s dependence on a rules-based global order and US efforts to alter it remain unresolved.

“Those tensions persist. That is the big story behind this ceasefire issue,” she said.

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