In the ongoing conflict between the United States and Iran, the situation in the Strait of Hormuz has almost come to a standstill, causing severe disruptions in the global energy market. The U.S. has requested escort from multiple countries, but China has refused to cooperate citing the policy of not inviting troubles to the east. However, the fires of the Middle East have directly impacted China’s coastal trading hubs, with Yiwu, known as the “World’s Supermarket”, facing challenges.
Since the outbreak of the conflict at the end of February 2026, the situation in the Strait of Hormuz has continued to deteriorate, leading to a near halt in shipping. As a vital passage for approximately one-fifth of the world’s crude oil, the closure of this strait has had a profound impact on the international energy market.
According to data from Kpler, as of the week ending on March 15, the daily exports of crude oil, condensate, and refined oil from eight countries including Saudi Arabia, Kuwait, Iran, Iraq, Oman, Qatar, Bahrain, and the UAE collectively dropped by 61% compared to February.
Citing information from Lloyd’s List Intelligence, the number of ships passing through the Strait of Hormuz from March 1 to 15 was only 89, significantly lower than the pre-war levels of 100 to 135 ships per day.
The impact of the Middle East conflict has spread along shipping routes to China’s coastal trading hubs.
According to a report by “Southern Window” on March 18, the top five provinces in China with the highest exports to the Middle East are Zhejiang, Guangdong, Jiangsu, Shandong, and Shanghai, accounting for a total export share of 67.2%.
Among these, Yiwu in Zhejiang, known as the “World’s Supermarket”, had export figures to the Middle East markets amounting to 109.31 billion RMB in 2025.
On March 19, at the Yiwu International Trade City, Zhou Bin, a merchant engaged in clothing exports to the Middle East, described the current challenges to a reporter.
He mentioned that compared to before, the foot traffic in the market has decreased by nearly half: “There used to be a lot of containers shipped at this time, but now it’s much fewer, not because they can’t be shipped out, but due to high prices and lack of orders from customers.”
Zhou Bin further pointed out that as a result of a heavy reliance on oil-refined raw materials such as plastics and fibers, the prices of raw materials have across the board, directly squeezing profit margins. The war has caused a shrink in consumer demand, a decrease in procurement willingness, and a combination of multiple factors that have put the entire industry in a difficult situation.
On the logistics front, there are also urgent issues. Lin Zhiyuan, a transport operator specializing in Middle East freight in Yiwu, informed a reporter that due to the Iranian conflicts, many shipping companies have been forced to reroute or suspend operations, leading to a significant increase in rerouting cost.
Lin Zhiyuan remarked that the Middle East logistics sector “can be said to be in a state of halt”, with some containers even being sent back, and on-the-way goods needing to bear additional war surcharges, making the Yiwu port look very deserted.
On March 19, the United Kingdom, France, Germany, Italy, the Netherlands, and Japan issued a joint statement condemning Iran’s attacks on ships and civilian energy infrastructure, as well as the de facto blockade of the Strait of Hormuz.
European countries and Japan have stated their readiness to work together to ensure the safe passage of the Strait of Hormuz and help stabilize the energy market.
While European allies are actively expressing their stance, China’s attitude is starkly different.
U.S. Trade Representative Jamie Garrison revealed that during his meeting with Chinese trade officials in Paris earlier in the week, he emphasized the continuous closure of the Strait of Hormuz and its impact on Beijing, stating that opening the strait is “most in line with China’s interests.”
However, Chinese Foreign Ministry spokesperson Lin Jian only urged all parties to immediately cease military actions, without any substantial response. The Chinese Communist Party’s official media, “People’s Daily,” characterized the relevant discussions as “inviting troubles to the east,” implying that Western media deliberately sensationalizes Chinese issues.
Media analyst Fang Wei analyzed the situation for the Epoch Times, stating, “The U.S. is asking China to participate in escorting. If China takes no action, it shows that China is actually in league with Iran. Trump would think that since you are allied with America’s enemy, when the U.S. deals with Iran or secures the Strait of Hormuz, there will be a reason to deal with China next.”
Fang Wei believes that the Chinese Communist Party’s so-called “inviting troubles to the east” rhetoric appears to be an attempt to shift focus but actually reflects the Party’s uneasiness. He points out that Iran’s biggest supporter is indeed China, which has a massive manufacturing industry but requires energy resources.
(A contribution by Epoch Times reporter Luo Ya)