Iran’s Exports to China on Exponential Growth Path

Financial Tribune - Iran’s trade with China, which had been registering deficits over the last decade, marked a turning point in the first quarter of 2017.

Iranian exports to its top trade partner saw a sharp rise of 69.7% in value and 31% in tonnage year-on-year to register a record surplus in favor of the Islamic Republic, according to Iran-China Chamber of Commerce and Industries.

Iran exported 21.12 million tons of commodities, mainly oil and petrochemical products, worth $6.4 billion to China during the period.

China’s exports to Iran in the four months to May stood at 4.9 million tons worth $5.7 billion, down 44% in tonnage and up 30.7% in value.

Its growing demand has presented a lively market for Iran exporters. Developments in the Chinese economy in recent years have increased peoples’ purchasing power in the 1.37-billion-strong country. This increase has paved the way for Iran to boost its non-oil exports and promote trade with China.

According to Trade Promotion Organization of Iran, Iran’s exports to China increased from $3.12 billion in the fiscal 2008-9 to $8.17 billion in the fiscal 2016-17.

Iran’s imports from China rose from $4.79 billion to $10.73 billion over the same 10-year period.

Bilateral trade has grown under the government of President Hassan Rouhani. It has registered a 70% growth, rising from $45 billion during the four years in office of former president, Mahmoud Ahmadinejad, to over $76 billion since Rouhani took office in August 2013.