China, Iran Deepen Ties Amid Middle East Tensions, Says US Report
According to the report, this relationship has become a key part of an informal “Axis of Autocracy,” which includes Russia and North Korea.
Published : March 17, 2026 at 2:58 PM IST
New Delhi: As tensions rise in the Middle East, a new report from the US-China Economic and Security Review Commission highlights the growing partnership between China and Iran.
According to the report, this relationship has become a key part of an informal “Axis of Autocracy,” a group that also includes Russia and North Korea. These countries are working together more closely to challenge U.S. influence around the world and to promote their own style of government, which favours authoritarian rule over democratic norms.
China has become Iran’s main economic supporter, buying about 90 percent of the oil that Iran sells abroad. Just in 2025, this trade gave Tehran around USD 31.2 billion—making up nearly half of Iran’s government budget and helping fund its military activities in the region. To get around international restrictions, China and Iran use an elaborate network of old tankers and front companies—many based in Hong Kong—to move money and carry out transactions that would otherwise be blocked.
According to their website, the U.S.-China Economic and Security Review Commission is a legislative branch commission created by the US Congress in October 2000 with the legislative mandate to monitor, investigate, and report on the national security implications of the bilateral trade and economic relationship between Washington and Beijing.
Their security cooperation now goes beyond just selling weapons. According to the report, China is providing Iran with technology that can be used for both civilian and military purposes—especially for making drones and missiles. For example, recent intelligence revealed that in March 2026, Iranian ships picked up sodium perchlorate (an important ingredient for rocket fuel) at a Chinese port. On top of that, China has let Iran use its BeiDou satellite navigation system, which probably helps make Iranian drone and missile strikes more accurate.
Still, even with these close ties, China is careful not to go too far. While it has criticised recent military attacks on Iran, calling them violations of international law, China has stopped short of making any official promises to defend Iran. Experts say China doesn’t want to risk its much bigger trade relationships with Saudi Arabia and the UAE, each worth USD 108 billion in 2025—far more than its business with Iran. By helping Iran join international groups like BRICS and the SCO, China hopes to reduce Iran’s isolation and push for a new world system that favours authoritarian governments.
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