Gulf states test China's ability to rein in Iran

As the Iran war heats up, Gulf Arab states want Beijing, not Washington, to use its economic leverage to open the Strait of Hormuz and the Red Sea. The limits of China's influence over Tehran, however, are a matter of debate.

Scraper SystemJuly 30, 2026, 09:18 PM

Gulf states test China's ability to rein in Iran

According to regional sources who spoke to Reuters, Gulf Arab states, with the renewed escalation of the Iran war, are relying more on Beijing's economic influence than on Washington to secure the Strait of Hormuz and the Red Sea. This shift is testing China's willingness and ability to pressure Tehran.

According to three separate regional sources, Gulf countries sought help from Beijing after Iran and its allies threatened the Bab el-Mandeb strait in the Red Sea and the Strait of Hormuz. The sources point out that the war has exposed the limits of American power.

Chinese Foreign Minister Wang Yi held dozens of phone calls and meetings in pursuit of a new ceasefire, while special envoy Zhai Jun made contacts in Gulf capitals and Tehran. In response to a request for comment, the Chinese Foreign Ministry said, 'China has maintained close communication with all parties and has consistently worked to stop the fighting and promote peace.'

China's position as a major oil buyer from both the Gulf and Iran, and as Tehran's largest trading partner, presents opportunities but also brings sensitivities. A Gulf source said, 'There is great respect between the Gulf and China, and they are a major trading partner, so every issue is raised very quietly.'

China's Middle East policy constrained by great power rivalry

Since the 2022 Gulf-China summit, China has developed close trade and investment ties with the six members of the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates). However, Beijing has avoided openly challenging Tehran's threats to maritime shipping, raising doubts about how far China is prepared to go to secure the Gulf and its own exports.

A second Gulf source said, 'The Chinese are trying to get more involved, they are trying to be more helpful,' and added: 'But it has turned out that China is not as effective as we thought. Whether this is a lack of will or a lack of capacity is debatable. It seems that when America steps in, superpower calculations override everything.'

Henry Tugendhat, a China expert at the Washington Institute, told Reuters that Beijing's top priority is to preserve relationships across the region rather than take diplomatic risks by openly taking sides. He noted that after Washington became directly involved, Beijing's calculations extended beyond the Gulf to include its broader ties and rivalry with the US.

A source with direct knowledge of the talks with China said, 'Gulf governments can buy Chinese technology, investment, and drones, but what they cannot buy is Chinese influence that operates independently of their relationship with Washington.'

China and other countries balance their interests

China, using its deep economic ties as leverage to carry into Middle East diplomacy, brokered a surprising diplomatic rapprochement between Saudi Arabia and Iran in 2023. That process is now being tested. Beijing is also pushing Pakistan to mediate the resumption of peace talks between Washington and Tehran.

Meanwhile, China has held direct talks with the Houthis in Yemen to ensure its own tankers can pass through the southern Red Sea without being attacked, amid threats from the Iran-aligned Houthis to block access to Saudi ports. Six sources close to the matter confirmed this to Reuters this week; China's Ministry of Transport did not respond to a request for comment.

Anna Borshchevskaya of the Washington Institute said that narrow bilateral arrangements protecting China-linked shipping are the only visible outcome of diplomatic efforts so far, adding, 'Beyond that, it is hard to see what else China has been able – or willing – to achieve.' She argued that the war allows China to protect its own interests while also increasing voter pressure on US and European leaders through rising energy prices.

Unlike the US, China has no defense commitment in the Gulf, no military mandate to protect regional waterways, and no appetite to take on such a role. Beijing says it is not prepared to use military force to reopen the Strait of Hormuz and does not believe other parties can do so either. Instead, it calls for diplomacy and dialogue for the security of international sea lanes.

The source with direct knowledge of the talks with China said that Beijing's transactional understanding with the Houthis has largely kept China-linked ships unharmed but has not created pressure to end all attacks; this approach resembles the stance displayed during the Houthi ship attacks in 2023-24.

Gulf states test China's ability to rein in Iran