In its recently released monthly report, the General Administration of Customs of China has revealed a significant decline in Iran's exports to the country during the first six months of 2023.

According to the report, Iran's total export value to China in the aforementioned period was $2.2 billion, representing a 46% reduction compared to the corresponding period last year.

The decrease in Iran's exports to China comes amidst a complex economic landscape that has evolved in recent years due to US sanctions.

Ever since the implementation of stringent US sanctions against Iran in 2020, China has adopted an alternative approach to procure oil from the Islamic Republic. By engaging intermediaries, notably Malaysian brokers, China has managed to secure oil supplies at significant discounts.

The reported figures do not encompass Iran's clandestine oil exports to China, disguised as shipments from other nations, as recorded by Chinese customs. It is estimated that Iran manages to ship approximately 800,000 barrels of oil through indirect means to China due to the constraints imposed by US sanctions.

Conversely, despite the sharp reduction in imports from Iran, China's exports to Iran have experienced a notable upswing, surging by a massive 30% and reaching a total value of $5.3bn.

India, which stands as Iran's second-largest trading partner in East Asia, has also witnessed a decline in imports from Iran. The data from India's Ministry of Economy reveals a 6% drop in imports during the first five months of the current year, leading to a significantly reduced import value of $272 million.