BUSINESSCHINA POWER (CSIS)
How Is the Iran War Impacting China’s Economy?
An Iran war beginning February 28, 2026 has disrupted the Strait of Hormuz and created significant economic shocks for China, the world's second-largest economy. Major impacts include reduced demand for Chinese exports as global economies contract, energy supply disruptions (one-third of China's crude oil transits the strait), supply chain challenges, and threats to Chinese investments in the Middle East region.
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