Chinese missile material to Iran, less Iranian oil to China, Iranians learning Chinese, UAE China Envoy meets Wang Yi, $500 million contract in Algeria for steel project, Chinese deal in Egyptian CBD
Eid Mubarak!
Iran Orders Material From China for Hundreds of Ballistic Missiles - Wall Street Journal. I’m not sure what to make of this story. Clearly, Iran has received shipments of ammonium perchlorate from China in the recent past - including earlier this year. The Chinese government claims it’s not aware of this new contract, with a MOFA spokesperson saying “The Chinese side has always exercised strict control over dual-use items in accordance with China’s export control laws and regulations and its international obligations.” I’d be inclined to agree that government officials believe this, and if I think of it rationally I’d say what I have countless times over the past decade: it doesn’t make sense for China to sell material to Iran that could be used to destabilize the Gulf, where China’s economic intersts lie with Iran’s rivals. I’d also say that Chinese commercial actors do a lot of things that the government isn’t aware of, that specific companies’ commercial interests aren’t the same thing as the state’s national interests. Anyone who’s read anything about China will be familiar with the logic of '“the mountains are high and the emperor is far away.”
At the same time, everyone in the world knew that two Iranian ships left Ningbo loaded with ammonium perchlorate in January of this year, and it was said to be stored in the Shahid Rajaee port that had the awful explosion in April. So we know China is sending the stuff to Iran, and at this moment in time it seems like a really short-sighted transaction.
Iran has ordered thousands of tons of ballistic-missile ingredients from China, people familiar with the transaction said, seeking to rebuild its military prowess as it discusses the future of its nuclear program with the U.S…
Iran’s mission to the United Nations didn’t respond to a request for comment. A Chinese Foreign Ministry spokesperson said China wasn’t aware of the contract.
“The Chinese side has always exercised strict control over dual-use items in accordance with China’s export control laws and regulations and its international obligations,” the spokesperson said…
“Chinese entities and individuals have provided support to Iran’s ballistic missile program, as well as to the Houthis’ missile and UAV production efforts, which is why we continue to identify and sanction them,” a State Department official said.
Iranian students bridge cultures at Chinese proficiency competition - Xinhua. One of those frequent Xinhua human interest pieces with lots of superlatives and propaganda, but beneath it is an important point to remember - students in the Middle East are engaging with China more than their parents’ generation did, and eventually we’re going to start seeing them in positions of responsibility. When I ask my Emirati students about their perceptions of China, it’s almost overwhelmingly positive. It’s also quite shallow, but my point here is that there is a big divergence with how people talk about China in the West and in the Middle East. I asked a class about this once and one student made a useful point: “We see how the Western media talks about us and it’s so far removed from how we see ourselves, so when we see them talk negatively about China we think they’re doing the same thing to them.”
In any case, I wouldn’t read too much into this Xinhua article, but the underlying point is worth thinking about. Chinese language is being taught in public schools in Saudi and the UAE now, and over time we’re going to see a region with a lot more Chinese cultural fluency.
The atmosphere at Shahid Beheshti University buzzed with a fervor usually reserved for sports arenas, not academic contests. Yet, for the Iranian students competing in the final of Iran's 24th "Chinese Bridge" Chinese Proficiency Competition, what surpassed even the electric energy in the air was their palpable passion for Chinese culture.
Last week's event saw 16 students from four prominent Iranian universities deliver passionate speeches and showcase traditional Chinese arts, revealing a profound and growing fascination with China on Iranian campuses.
Iran Oil Flows to China Fall on Sanctions, Refinery Maintenance - Bloomberg.
Preliminary data shows flows of crude and condensate from Iran to China were at just over 1.1 million barrels a day in May, about a fifth lower than a year earlier, according to estimates by Vortexa Ltd. based on ship-tracking data. The numbers are subject to change as shipments are tallied, a process made more difficult by tankers increasingly turning off their transponders.
I’ll be interested to hear if there are any investments from Mubadala that come out of this visit. In addition to his role as Special Envoy to China, Al Mubarak is also the CEO of the Abu Dhabi sovereign wealth fund, which reportedly manages nearly $330 billion in assets. It’s Chinese investments have been increasing; their website says $17 billion in China through over 100 investments, which is impressive but not nearly as high as one would expect given the constant hype about China’s outsized role in the Emirates’ economic outlook. I wrote about Gulf SWF investment into China early on in the life of this newsletter and think it’s worth re-posting since most of you wouldn’t have seen it. Maybe due for an update, but for now here’s the link.
On June 4, 2025, Member of the Political Bureau of the CPC Central Committee and Director of the Office of the Central Commission for Foreign Affairs Wang Yi met with Presidential Special Envoy of the United Arab Emirates (UAE) to China Khaldoon Khalifa Al Mubarak in Beijing.
Wang Yi stated that China's policy towards the UAE is characterized by stability, continuity, and long-term commitment. The comprehensive strategic partnership between China and the UAE serves the national interests and people's aspirations of both countries. The China-UAE relationship is not targeted at any third party, nor is it subject to interference from any third party. Under the strategic guidance of the two heads of state, the China-UAE relationship has maintained a positive momentum of development and has become a model for China's interactions with Arab countries. China is ready to work with the UAE to continue to grasp the overall direction of bilateral relations from a strategic and long-term perspective based on the important common understandings reached between the two heads of state. China and the UAE will support each other on issues concerning each other's core interests, expand mutually beneficial cooperation in various fields, maintain close coordination in international and regional affairs, and advance the in-depth development of the comprehensive strategic partnership between China and the UAE.
Khaldoon Khalifa Al Mubarak said that developing relations with China is a priority in the UAE's foreign policy and is also of paramount importance. The UAE is willing to enhance high-level exchanges with China, deepen cooperation in such fields as investment, economy, trade, energy, and education, and further upgrade the comprehensive strategic partnership characterized by special friendship between the UAE and China. The UAE abides by the one-China principle, and will uphold the principles of independence and autonomy in steadfastly promoting cooperation with China.
Algeria awards $500mln steel deal to Chinese firm - Zawya.
The Algerian Investment Promotion Agency (AAPI) has awarded a land concession to Chinese steel conglomerate Jingdong Steel for a major steel project.
The agreement, signed on Monday, authorises the allocation of a 36-hectare plot within the industrial zone of Dhraâ El-Hadja in the Northern M’sila province for the construction of a advanced steel production plant with a capacity of 500,000 tonnes per year.
This investment—valued at $500 million-marks a pivotal development in Algeria’s industrial landscape, positioning the country as a future hub for steel and pipe manufacturing in North Africa, AAPI said.
The plant will boast a total annual production of 500,000 tonnes, including 200,000 tonnes of steel plates and 300,000 tonnes of steel pipes of varying specifications, to be developed in two distinct phases.
Phase 1 will focus on establishing the production line for steel plates, while Phase 2 will witness the installation of a state-of-the-art unit for manufacturing steel pipes, essential for the construction, energy, and water infrastructure sectors.
China, Egypt ink deal on operation of CBD in New Administrative Capital - Xinhua.
Egypt's New Urban Communities Authority and a Chinese-Egyptian joint venture have signed a comprehensive operation and maintenance agreement for the Central Business District (CBD) in Egypt's New Administrative Capital.
According to the agreement, Horizon Operations Management (Egypt) Co., Ltd. will be responsible for the operation of the CBD project, initially focusing on property and municipal management.
According to a statement by the Egyptian cabinet, Egyptian Minister of Housing Sherif El-Sherbiny said during pre-signing talks that the agreement covers the maintenance and management of important facilities and the provision of integrated urban services to residents, tourists, and businesses in the CBD.
El-Sherbiny emphasized that this move represents a significant transition in Egypt's approach to public facility management -- from traditional models to performance-based governance rooted in quality and sustainability.
The signing ceremony on Sunday was also attended by Egyptian Prime Minister Mostafa Madbouly, China's Vice Minister of Housing and Urban-Rural Development Dong Jianguo, and representatives of China State Construction Engineering Corporation, which led the construction of the CBD.
Located in the heart of the desert some 50 km east of the capital Cairo, the CBD is one of the key projects of the China-Egypt joint construction of the Belt and Road Initiative. The project includes 20 commercial and residential skyscrapers as well as supporting municipal infrastructure, among which is a 385.8-meter-high iconic tower, the tallest building in Africa.