Credit: CFP
AsianFin -- Rising geopolitical tensions in the Middle East have done little to shake the confidence of Chinese businesses operating in the region, which continues to attract growing interest from exporters and investors alike.
Chinese exports to Dubai, a key regional logistics hub, have jumped 20% year-on-year this month, according to Bear Huo, China General Manager at FundPark, a fintech firm that finances small exporters selling online. He attributed the spike to a surge in local demand for essentials such as batteries and daily goods amid regional uncertainty.
Chinese merchants remain largely optimistic, Huo said. He noted that the Middle East has emerged only recently as a fast-expanding market, giving businesses a strong incentive to deepen their presence.
In recent years, Chinese companies have increasingly looked to the Middle East to offset mounting trade tensions with the United States—whether by raising capital from Gulf investors or expanding electric vehicle sales. Diplomatic gains, such as Beijing’s role in brokering a 2023 détente between Saudi Arabia and Iran, have also bolstered China’s influence in the region.
Huo believes the latest Israel-Iran hostilities are likely to remain limited in scope. “Even U.S. strikes have focused on select strategic targets, and the situation doesn’t resemble a full-scale war like Russia and Ukraine,” he said.
Still, risk levels are elevated. Dubai’s port, a major entry point for Chinese goods, lies just across the Strait of Hormuz from Iran—a critical chokepoint for global oil shipments. Huo noted slower shipping activity and reduced air traffic, though he added that FundPark avoids direct dealings with Iran due to U.S. sanctions. He also said he has no visibility into where goods go after arriving in Dubai.
Beijing, for its part, has condemned recent U.S. military actions and urged restraint from all parties. “We strongly condemn the U.S. attacks on Iran,” China’s Ministry of Foreign Affairs said, calling for an immediate ceasefire.
While China’s trade with Iran has dropped sharply over the past two years—due in part to sanctions—Beijing remains Iran’s top economic lifeline, particularly in oil. Yue Su, China economist at the Economist Intelligence Unit, said Beijing has strong incentives to maintain Middle East stability.
“A more stable Middle East aligns with both China’s strategic and economic goals,” she said. “China wants to be seen as a stabilizing force on the global stage.”
That caution is reflected in Chinese firms’ limited direct engagement with Iran, as they weigh the risk of secondary sanctions. Yet optimism persists that opportunities may open up. State broadcaster CCTV recently aired interviews with Chinese nationals thanking the government for organizing evacuations from Iran. Most Chinese citizens have since left, the Chinese embassy confirmed.
Unlike U.S. citizens, who face travel warnings, Chinese nationals can still visit Iran for up to three weeks visa-free for business or tourism. And some entrepreneurs see longer-term potential.
Qin Gang, founder of Beijing-based consultancy Ode & Song Cultural Industry, said tens of thousands of Chinese firms could flood into Iran if sanctions ease, fueling growth in tourism, real estate, and infrastructure. Qin, who previously visited five Iranian cities as a guest of Mahan Air, said “the market potential is huge—if the geopolitical clouds lift.”
