Chinese Exporters Put $144.9 Billion Gulf Trade Above Tariffs as Iran War Disrupts Trump-Xi Summit Focus
Updated
Updated · CNBC · May 13
Chinese Exporters Put $144.9 Billion Gulf Trade Above Tariffs as Iran War Disrupts Trump-Xi Summit Focus
8 articles · Updated · CNBC · May 13
Chinese exporters heading into this week’s Trump-Xi meeting are focused less on tariffs than on the Iran war, with some already preparing second-half downsizing if the conflict drags on.
50-day shipments through the Strait of Hormuz, up from 30-40 days, plus soaring airfreight and port congestion at Shanghai and Ningbo have made the war more disruptive to supply chains than recent U.S. tariffs.
A 3.5% jump in China’s April input-cost index from 0.8% in March shows the pressure spreading beyond logistics into raw materials, fuel, power and fertilizers tied to Middle East supply.
That shift reflects how exporters have already adapted to trade friction: China’s exports to the U.S. fell 20% last year, while shipments rose 25.8% to Africa and 13.4% to Southeast Asia.
China’s exports to five Gulf states climbed 9% to $144.9 billion last year, leaving businesses more exposed to Middle East instability even as they assume U.S. tariff friction is now permanent.
As the Iran war cripples global trade, will rivals America and China form an unlikely alliance to secure the seas?
Is Iran's blockade the shock that finally breaks the world's fragile supply chain model for good?
With its economy at risk, will Beijing abandon its non-interference policy and intervene directly in the Middle East crisis?
U.S.-China Summit 2026: AI Cooperation, Energy Security, and the Geopolitical Impact of the Iran Crisis
Overview
The Trump-Xi summit on May 13, 2026, centers on urgent global issues, with artificial intelligence (AI) cooperation taking top priority as both countries face calls to set global standards and safeguards. Senator Bernie Sanders urges the leaders to share technical information and define 'AI redlines' to address existential risks, echoing past nuclear arms talks. Alongside AI, economic discussions are crucial, with a potential energy deal where China may buy more U.S. oil and gas, possibly raising global commodity prices. These intertwined diplomatic and economic efforts highlight the summit's focus on managing both technological and market challenges.