Chinese President Xi Jinping has warned that the international order is “crumbling” and the world is in “chaos,” marking his most direct personal criticism of the geopolitical instability triggered by the ongoing war in Iran. The remarks came Tuesday during a high-stakes meeting in Beijing with Spanish Prime Minister Pedro Sanchez, as the global economy braced for the impact of a U.S.-led blockade of the Strait of Hormuz.
The blockade of the vital waterway has already sent oil prices spiking, threatening to destabilize energy markets worldwide. For Beijing, the situation represents more than a regional conflict; it is a test of whether international law can survive a period of aggressive military and economic unilateralism. Mr. Xi suggested that a nation’s adherence to global norms is a reflection of its “world view, values, vision for order and sense of responsibility.”
The timing of the exchange follows a public call from Mr. Sanchez on Monday for China to assume a more proactive role in stabilizing international affairs. The Spanish leader urged Beijing to demand that international law be respected and that conflicts in Lebanon, Iran, Gaza, the West Bank, and Ukraine cease, stating plainly that “China can do more.”
Chinese President Xi Jinping and Spain’s Prime Minister Pedro Sanchez shake hands at the Great Hall of the People in Beijing, Tuesday.SPANISH GOVERNMENT/Reuters
A Shift in Global Alignment
Beijing is increasingly positioning itself as a diplomatic alternative to the United States, a trend evidenced by a surge of visits from both U.S. Allies and rivals. The arrivals of the Spanish and UAE leadership underscore a broader rebalancing as nations react to the aggressive trade policies and military actions of U.S. President Donald Trump.
While Mr. Xi avoided mentioning Mr. Trump by name, his warning that the world cannot “revert to the law of the jungle” served as a pointed critique of the current U.S. Strategy in the Middle East. He emphasized that international law cannot be applied only “when it is convenient and be abandoned when it is not.”
This diplomatic push is coupled with a new “four-point proposal” for peace and stability in the Middle East, which Mr. Xi advanced during a meeting with Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed. According to a Chinese readout, the proposal focuses on:
- The promotion of peaceful co-existence.
- Strict respect for national sovereignty and international law.
- The coordination of regional development and security.
Despite these efforts, China’s influence remains contested. Mediation efforts supported by Beijing recently collapsed in Pakistan, highlighting the difficulty of brokering a lasting peace in a region where interests are deeply polarized.
Economic Fallout and the Hormuz Blockade
The U.S. Blockade of the Strait of Hormuz has created an immediate economic flashpoint. Because Iran had previously allowed Chinese vessels to transit the waterway, Beijing has demanded that all parties maintain the route open. Chinese foreign ministry spokesperson Guo Jiakun described the blockade as a “dangerous and irresponsible” act that risks exacerbating the conflict.
The economic consequences are not distributed evenly. While China is weathering the disruptions better than most—thanks to substantial oil and gas reserves accumulated following the war in Ukraine and subsequent sanctions on Russia—the rest of Asia is highly vulnerable.
A recent report from the United Nations Development Programme warns that the military escalation in the Middle East could result in significant output losses across the Asia-Pacific region.
| Metric | Low Estimate | High Estimate |
|---|---|---|
| GDP Percentage Loss | 0.3% | 0.8% |
| Financial Impact (USD) | $97 Billion | $299 Billion |
Portraits of victims reportedly killed in a U.S.-Israeli airstrike on a residential building near are displayed in Tehran on Monday.-/AFP/Getty Images
Trade War Risks and Diplomatic Detente
The tension is further complicated by a precarious trade truce. Mr. Trump has threatened a blanket 50-percent levy on any country selling weapons to Iran. This follows reports from CNN and the New York Times, citing U.S. Officials, that China was preparing to send or had already sent arms to Tehran—claims that spokesperson Guo Jiakun dismissed as “completely made up.”
The risk of a renewed trade war is high. Last year, China matched U.S. Tariffs in a cycle of escalation that threatened to decouple the two largest economies. Mr. Guo warned on Tuesday that if the U.S. Uses these claims as an excuse for additional tariffs, China will “resolutely take countermeasures.”
Adding to the instability is the uncertain status of a planned state visit. Mr. Trump was scheduled to visit Beijing in late March, but the trip was postponed to May due to the war in Iran. “We’re speaking to China. I’d love to, but because of the war, I want to be here. I have to be here, I feel,” Mr. Trump said when announcing the change.
With a current ceasefire set to expire next week, the prospect of the first U.S. Presidential visit to Beijing in nearly a decade remains in doubt. A cancellation could effectively conclude the shaky trade truce and push the two superpowers toward a more permanent economic rupture.
The immediate focus now turns to the expiration of the ceasefire next week, which will determine whether hostilities resume or if there is a window for the diplomatic proposals advanced by Beijing to take hold. We will continue to monitor official statements from the State Department and the Chinese Foreign Ministry as the deadline approaches.
Do you believe China can effectively mediate the conflict in Iran, or is the rift between Washington and Beijing too wide? Share your thoughts in the comments below.
